Checking Profitability Recipe Created by m.moebs on 12/10/2023 3:19:14 PM Transaction Account (Checking) is the most complex financial service.
It represents both a Demand Service (Free Checking) and a Supply or Deposit Service (Pays Interest).
Marketing and maintaining a T-Acct requires Profitability Analysis – Read this Report to Learn How.
Happy Holiday & Successful New Year,
Semper, Mike
Few Depositories Find Profit in Transaction Account Profitability
“Each Financial Institution (FI) is the chef of their own services. Cooks don’t make it in financial service anymore.” Michael Moebs, Economist & Chair of Moebs $ervices (M$) a Financial Service Research Firm.
Lake Forest IL (December 10, 2023) T-Accts and fees are under attack from Sacramento to The Swamp on K Street to tips for wait staff, and even cookies left for Santa – should he pay for his meal. The New York Times published a report last month on Citibank asserting T-Accts should be entirely free for all FIs. Is the NYT free? The solution for successful T-Accts is cooking away in the financial service kitchen. The T-Acct recipe is the most complex financial service. What ingredients are free? What ingredients are most costly?
Checking (T-Acct) Profitability is key and driven by the Functional Cost Analysis (FCA) of Moebs $ervices, who took over the FCA from the Federal Reserve in 2003. The FCA is like a cookbook. Yet these days it requires each FI to have a chef onboard and not a cook. READ FULL ARTICLE
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