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  • April 2002 (Revised March 2006)
  • Background Note
  • HBS Case Collection

Economics of Retail Banking Note

By: Frances X. Frei and Dennis Campbell
  • Format:Print
  • | Pages:13
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Abstract

Explains the financial operations of retail banking, highlighting profitability challenges facing the industry. For U.S. banks, it is quite common for more than half of the customer base to be unprofitable and to have relatively few customers make up the vast majority of profits. Attempts to explain how retail banks generate revenue and incur costs while serving their customer base.

Keywords

Customers; Economics; Cost; Banks and Banking; Profit; Revenue; Service Operations; Banking Industry; United States

Citation

Frei, Frances X., and Dennis Campbell. "Economics of Retail Banking Note." Harvard Business School Background Note 602-153, April 2002. (Revised March 2006.)
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About The Authors

Frances X. Frei

Technology and Operations Management
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Dennis Campbell

Accounting and Management
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More from the Authors
  • Taylor Guitars: Making Employee Ownership Work The Taylor Way By: Dennis Campbell, Petros Kusmu and Stacy Straaberg
  • Leaders Can Move Fast and Fix Things By: Frances X. Frei and Anne Morriss
  • Haidilao: Changing Your Future with Your Own Hands By: Yuan Zou and Dennis Campbell
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