Can Banks Delight Customers? – Forbes

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Link: Can Banks Delight Customers? – Forbes

Banks have often pursued what Fred Reichheld calls “bad profits”. Retail banks still depend on “nuisance fees” for one-third of their earnings.[2] Banks have used algorithms that process the largest checks first each day, so that depositors will be hit with more insufficient funds notices.[3] Banks created instruments which were based on junky assets, then sold them to clients, and bet against their own clients by betting on their failure. When the big banks got into trouble in 2008 with their gambling known as proprietary trading, the government was obliged to bail them out to prevent a global financial catastrophe: after the big banks had been rescued with public funds (TARP), executive compensation in the sector was widely perceived as “lavish”. The big banks have a great deal to do with banking’s bad reputation. When we think of banks, we tend to think of Citibank [C], Bank of America [BAC], JPMorgan Chase [JPM] or Wells Fargo [WFC]. Indeed, the top five banks do own around three-quarters of the market. January 31, 2013 at 05:46PM

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