TD Banknorth admit they will close some of their considerable 600 branches due to profitability issues.  But I have to call them on this quote that to me is standard operating procedure for a bank in trouble.  “We are still being negatively impacted by the inverted yield curve (as) deposit customers continue to strive for higher levels of interest rates, but also by the increased competition (as) banks fight to maintain their piece of a shrinking deposit and loan base,” Verrill said. Source: Canadian Banks & Insurance Last time I looked banks make money on spread, and the reality of spread compression is not … Continue reading TD Banknorth blame spreads for branch closures

Aneace has been consistent in his themes that customer experience at the transaction point is a moment for differentiation, and that interchange revenues will be driven down through transparency.  The latter is the topic of his latest post. Merchant coalitions appear to be shifting their strategy away from court mandated regulation of interchange fees, and appear to be moving instead toward greater transparency, making it clear to consumers how much merchants must spend on interchange, so as to set the platform for massive surcharging Source: Aneace’s Blog: Why do merchants prefer credit card surcharges rather than cash discounts? That interchange transparency is coming is … Continue reading Aneace’s Blog: Why do merchants prefer credit card surcharges rather than cash discounts?

This problem highlighted by Cathy at Forrester demonstrates what can happen when the “internet” group(s) get ahead of the business strategy. eStatement adoption in Canada has exploded during the past few years. Forty-seven percent of online Canadians now receive an online statement for their bank deposit accounts. But there’s a problem — 86% of eStatement adopters also continue to receive a paper statement via mail. Source:  Canadians Move To estatements — But Still Cling To Paper The internet group tends to be driven by understanding customers needs and aspirations, supported by technology capability. But the smart organisation will keep that … Continue reading The argument for an integrated multi channel strategy

Now that the 3rd quarter is over a thread of positiveness for at least three banks, seems to have attached to the Canadian Banks.  Here is a summary of the analysts forecasts relative to previous analyst guidance.  These are the summary of the analysts opinions on their changes to Bank price targets, which they review each quarter. For details, visit Canadian Banks & Insurance. Bank of Montreal – increase of around $2 – 5 to $70 / 72 Bank of Nova Scotia – no change at $49 – $54 CIBC – no change /increase $2 to $87 – $96 National Bank of Canada … Continue reading Canadian Banks analysts summarise 3rd quarter

Great quote below, that I came across while studying Aneace’s blog tonight.  What I liked about it, is that it goes to the root of value.  It should be fundamental to your business strategy, because without a good product, there is no sustainable value, which should be based on what customers need. This is fundamental to the pinko philosophy, that value is not something to be created in and of itself.  It must and should come from the company’s core business.  This is counter to the “value based management” approach espoused by McKinsey 10 years ago, which says, you should … Continue reading Pinkomarketers should be billionaires

Informative post from Aneace on the relative size of interchange, being the method banks make money from merchants on credit card purchases. There is interchange on debit cards, in addition to these numbers. Aneace's Blog: The interchange industry is bigger than … How big is the payments industry if you leave out loan revenue and simply look at fees paid by merchants and consumers for the convenience of using plastic? The bulk of that revenue consists of interchange fees paid by merchants to card issuers. He goes on to point out the relativity of size for interchange. Much bigger than … Continue reading The interchange industry is bigger than …