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U.S. Bancorp Piper Jaffray Believes Retail Banking Contributions Have Peaked

Friday 12 December 2003 15:47 CET | News

Although retail banking now contributes 44 percent of estimated earnings at large banks in 2003, up from 26 percent in 2000, U.S. Bancorp Piper Jaffray Senior Financial Institutions Analyst Andrew Collins believes contributions may have peaked given an anticipated recovery in other sectors such as capital markets, investment management and processing in 2004 and beyond.

Going forward, he anticipates the heavy investment in retail distribution at U.S. commercial banks to continue until merger activity re-accelerates. In a new report entitled, Large Commercial Banks: Riding the Retail Banking Wave, Collins examines these trends among others facing the retail banking industry including: expanding de novo branch efforts (and refurbishments); increasing fees on deposits; reducing retail funding costs; incenting customer service representatives on service goals; and cross-selling of products such as home equity, online banking and credit/debit card through the branch network.


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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce