EIRP Proceedings, Vol 1 (2006)

Abstract

Not surprisingly, firms compete aggressively for consumers' business. Competition, in its turn, puts a premium on innovation and precision in service delivering and in personalizing it for individuals. In some cases, however, the opportunities are not the same for all service providers. Even though commercial banks have gained greater flexibility in diversifying their asset base across geographic boundaries and into new product lines in recent years, federal and state regulations often put them at a competitive disadvantage. In this chapter, we examine recent competitive trends affecting the banking industry, as manifested by the greater number of suppliers of banking and financial services, as well as the greater variety of products and services offered.