商业银行管理Chap014.pptVIP

* * * Chapter Fourteen Investment Banking, Insurance, and Other Sources of Fee Income Key Topics The Ongoing Search for Fee Income Investment Banking Services Mutual Funds and Other Investment Products Trust Services and Insurance Products Benefits of Product-Line Diversification Economies of Scope and Scale Information Flows and Customer Privacy Introduction Financial institutions have faced a struggle recently to attract the funds they need in order to make loans and investments and boost their revenues Whenever deposit growth slows, financial-service managers frequently are forced to pursue new sources of funds and new ways to generate revenue Important source of growth in future revenues – fee income Revenues derived from charging customers for the particular services they use Monthly service charges on transaction accounts Commissions for providing insurance coverage for homes and businesses Membership fees for accepting and using a particular credit or debit card Fees for providing financial advice to individuals and corporations “Swipe fees” at the point of sale Introduction (continued) The drive among competing financial firms to generate more fee income as an increasingly important revenue source comes from several sources A desire to supplement traditional sources of funds (such as deposits) when these sources are inadequate An attempt to lower production costs by offering multiple services using the same facilities and resources (economies of scope) An effort to offset higher production costs by asking customers to absorb a larger share of the cost of both old and new financial services A desire to reduce overall risk to the financial-service provider’s cash flow by finding new sources of revenue not highly correlated with revenues from sales of traditional services A goal to promote cross-selling of traditional and new services in order to further enhance revenue and net income Sales of Investment Banking Services One banking service that has bee