TITLE

Low-balance bank accounts -- Part 1: Is there a pathway towards profitability?

AUTHOR(S)
Porteous, David
PUB. DATE
September 2015
SOURCE
Journal of Payments Strategy & Systems;Autumn2015, Vol. 9 Issue 3, p305
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
There is a business case for banks to issue basic transactional accounts, although most individual low-balance accounts are probably loss making for most large banks -- profitability is more likely at the level of the client segment, in which other products cross-subsidise the overall returns from the target group. Banks' use of agent networks for account opening and cash handling transaction will help but not solve the conundrum of account-level profitability. Reaching breakeven at this level will happen only as clients move away from a cash-based world towards more digital transactions in the future. This paper reaches these conclusions based on cross-country evidence from fiv e large emerging market retail banks involved in the GAFIS project, which completed in 2014.
ACCESSION #
110363052

 

Related Articles

  • Low-balance bank accounts -- Part 2: Must banks collaborate to succed? Porteous, David // Journal of Payments Strategy & Systems;Autumn2015, Vol. 9 Issue 3, p311 

    Low-balance transactional accounts on their own probably lose money for most large banks. There may, nonetheless, be a business case to issue them. Forms of collaboration among issuers may help to reduce losses, even though collaboration may not be necessary to achieve success. This paper...

  • E-BANKING- MODERN BANKING SERVICES. Miranda-Petronella, Vlad // Annals of the University of Oradea, Economic Science Series;2009, Vol. 18 Issue 4, p1093 

    E-banking is the first of those banking services that really economize time, because it allows to the user to accomplish from behind the computer many operations in the bank account, represents the computational solution that allows to the holder to have access at distance at the capitals from...

  • The Business of Retail Banking. Maiya, Rajashekara V. // Latin Trade (English);Sep/Oct2008, Vol. 16 Issue 9, p5A 

    The article offers advice on improving the retail banking in Latin America. It suggests that banks should offer options that will address the needs of their customers, real-time access to their accounts and transactions and boost speed and convenience. In terms of technology, the article urges...

  • Chip and PIN: UK migration enters the endgame.  // MarketWatch: Global Round-up;Nov2005, Vol. 4 Issue 11, p101 

    The article reports that Great Britain's rollout of Chip and PIN continues to progress well. Since October 2003 to the end of June 2005, 107 million EMV-compliant cards had been issued. Popular appraisal of the success of the move will rest entirely on the number of consumers who experience...

  • The Dawn of eBAM. Gamble, Richard // Treasury & Risk;Feb2011, p12 

    The article reports on the successful pilot in 2010 of electronic bank account management (eBAM), the automation of bank-corporate communication in the U.S. As a stress test, Bank of New York (BNY) Mellon is described to have recruited three corporate clients and used SWIFT as the message...

  • NEWS MAKERS.  // Bank Technology News;Jun2004, Vol. 17 Issue 6, p10 

    Presents news briefs pertaining to bank technology in the U.S. as of June 2004. Estimated number of Americans who have been defrauded by phishing attacks, according to a Gartner survey; Expected growth of retail banks' information technology (IT) investments in 2006, as the industry aims to...

  • RBS ramps up debit payment protection. Riders, Karl // Computer Weekly;4/8/2008, p1 

    The article reports on the plan of the Royal Bank of Scotland (RBS) to launch a debit card payment system that will feature error checking and antifraud technology. The bank plans to be the first bank to use a system for debit card payments that automatically verifies details such as the...

  • Authorities will make you pay, pal. Jooste, Ruan // Finweek;5/27/2010, p72 

    The article reports on the consideration sales legalities through PayPal Inc. in South Africa. PayPal serves as an alternative for bank account and/or credit card for cash indefinite quantity through a PayPal account to purchase goods over the Internet. It is considered as a safe and convenient...

  • Development Of Payment System: Case Of Central Bank Of Bahrain. Shubita, Moade Fawzi; Harris, Peter; Felaifel, Abdulla Ahmed // International Business & Economics Research Journal;Jan/Feb2014, Vol. 13 Issue 1, p121 

    This study analyses the payment system of the Central Bank of Bahrain based on interviews with bankers in addition to distributing 70 questionnaires to seven banks. The study presents the historical development of the Central Bank of Bahrain and reviews related studies. The results show that the...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics