Barb, you always present some stimulating materials. Thanks!
The premise of the article is that the products and services delivered are identical commodities. If in fact the industry is a utility that delivers an undifferentiated offering then the low-cost provider can dominate. If however, there are opportunities for value creation beyond the commodity viewpoint, then value that goes beyond price can make room for those who have additional cost structures. Therefore, being the low-cost provider is not destiny when risk and value differentiation can be observed. Having a greater cost structure can in fact be an advantage if that cost generates incremental value that exceeds the incremental cost.
I like to tell our client and co-workers that I love working for a banking organization that provides flexible choices, competitive prices, and the best tools to manage our clients' money. When we deliver on those promises, we don't have to also be the lowest cost provider. I believe and the evidence supports that we are the bank of choice when we listen and respond to our clients, co-workers, and communities with mutually valuable, timely, and trustworthy commitments and innovations delivered through empowered representatives. Flexible choices and providing the best tools are our value differentiators.
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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 08-16-2018 12:31
From: Barb Rehm
Subject: Bigger is Better-and Cheaper
The Financial Services Forum argues today in a blog post that bigger banks are better because they lower the cost of banking services for consumers and businesses. You can read it here and debate here on Peer Intelligence. Let us know what you think of the Forum's arguments.
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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
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