Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

%DQNLQJ-RXUQDO9ROXPH ,VVXH 

&XVWRPHU%HKDYLRUDQG3UHIHUHQFHV$6XUYH\5HSRUW


.LUDQ3UDVDG%KDWWD3K'
5HVHDUFKDQG3URJUDP'LUHFWRU1HSDO%DQNHUV$VVRFLDWLRQ
(PDLOQED#HQHWFRPQS


$%675$&7
7KH REMHFWLYH RI WKH UHVHDUFK LV WR ILQG RXW WKH EHKDYLRU RI WKH SHRSOH UHJDUGLQJ
WKHLU ILQDQFLDOHFRQRPLF DFWLYLWLHV $ VXUYH\ RI %DQNV &XVWRPHU ZDV FRQGXFWHG RQ
WKHVHOHFWHGEUDQFKLQVLGH.DWKPDQGXYDOOH\RI0HPEHU,QVWLWXWLRQ V >0, V @RI
1HSDO%DQNHUV$VVRFLDWLRQ 1%$ IRUWKLVUHVHDUFKGXULQJ$SULOWR-XQHZLWKD
VDPSOHVL]HRIUHVSRQGHQWVIURPHDFK%DQNV5HPRYLQJLQFRQVLVWHQWGDWDVHWV
KRZHYHUXOWLPDWHO\DWRWDORIGDWDZHUHXVHGIRUWKHDQDO\VLV

7KHUHVXOWVVKRZHGWKDW\RXQJHGXFDWHGVDODULHGPDQIURPWKHHDVWHUQUHJLRQRI
1HSDO ZLWK KLJK PRQWKO\ LQFRPH ZHUH WKH PDMRU FRQVXPHU RI EDQNLQJ VHUYLFHV
SURYLGHGE\WKH0, V $QDO\VLVDOVRVKRZHGWKDWFXVWRPHUVKHOGDODUJHDPRXQWRI
FDVKDWKDQGXVXDOO\KDGWUDQVDFWLRQVZLWKPRUHWKDQRQHEDQNDQGSUHIHUUHGWKH
XVH RI $70 $XWRPDWLF 7HOOHU 0DFKLQH  RU 'HELW&DUGV UDWKHU WKDQ WUDGLWLRQDO
LQVWUXPHQWVOLNH&KHTXHV7KH\UDWHGWKHVHUYLFHTXDOLW\DQGVWDIIEHKDYLRURIWKHLU
EDQNV WR EH RI XWPRVW LPSRUWDQFH IRU FKRRVLQJ LW IROORZHG E\ WHFKQRORJLFDO
LQQRYDWLRQV QXPEHU RI EUDQFKHV$70V DQG RWKHU FKDUDFWHULVWLFV +HQFH WKH
HQKDQFHPHQW RI VHUYLFH TXDOLW\ DQG SOHDVDQW EHKDYLRU IURP VWDII PD\ FRQWULEXWH
WRZDUGV FOLHQW UHWHQWLRQ DV ZHOO DV LQFUHPHQW LQ IXWXUH 7HFKQRORJLFDO LQQRYDWLRQ
DQGDGGLQJXSQXPEHURIRXWOHWVPD\DOVRKHOSWRVRPHH[WHQW<RXQJJHQHUDWLRQ
FXVWRPHUV DUH UHOXFWDQW WR XVH &KHTXHV DQG KDG EHHQ LQFUHDVLQJO\ IRXQG WR XVH
$70&DUGVHYHQIRUVKRSSLQJ7KHWUHQGLVVXUHWRLQFUHDVHPRUHLQIXWXUHLQWKH
XUEDQ DUHDV DQG EDQNV VKRXOG DOVR PDLQWDLQLQFUHDVH SURYLGLQJ WKLV VHUYLFH IRU
FRPSHWLWLYHQHFHVVLW\LIQRWIRUFRPSHWLWLYHDGYDQWDJH

&RQVXPHUV ILQG QR VSHFLILF UHDVRQV IRU KROGLQJ ODUJH DPRXQW RI FDVK DW KDQG
DOWKRXJK VHYHUDO RFFDVLRQV RI SHULRGLF FDVK VKRUWDJHV PLJKW KDYH WULJJHUHG WKLV
KDELW+HQFHHIILFLHQWOLTXLGLW\PDQDJHPHQWRQSDUWRIEDQNVDQGVXIILFLHQWOLTXLGLW\
VXSSO\E\15% 1HSDO5DVWUD%DQN FRXOGKHOSLPSURYHWKHVLWXDWLRQ7KLVPD\DOVR
KHOS EULQJLQJ EDFN PRUH PRQH\ WR WKH IRUPDO EDQNLQJ FKDQQHOV 'LIIHUHQWLDO
SURGXFWV DQG VHUYLFHV DFFRXQW IRU RQO\ DURXQG RQHIRXUWK RI UHDVRQV IRU KDYLQJ
GLIIHUHQWEDQNDFFRXQWVEXWWKHEDQNVFRXOGILQGDQLFKHPDUNHWLQWKLVUHJDUGE\
SURYLGLQJVSHFLILFDOO\GLIIHUHQWLDWHGSURGXFWVDQGVHUYLFHV/DFNRIDZDUHQHVVLVDOVR
SUHYDOHQW DQG PD\ EH RQH RI WKH UHDVRQV RI QRQDFFHSWDQFH RI PRGHUQ
WHFKQRORJLHVE\VRPHRIWKHFRQVXPHUVRIWKHILQDQFLDOVHUYLFHV+HQFHFXVWRPHU
HGXFDWLRQDZDUHQHVVSURJUDPVFRXOGEHKHOSIXOIRUWKHEDQNVWRLQFUHDVHWKHXVHRI
ODWHVWWHFKQRORJLHVLQWURGXFHGE\WKHP







%DQNLQJ-RXUQDO9ROXPH ,VVXH 


6RPH RI WKH FXVWRPHUV ZHUH DOVR IRXQG WR EH XVLQJ WKH VHUYLFHV RI ILQDQFLDO
LQWHUPHGLDULHVRWKHUWKDQWKH0, V RI1%$/HVVIRUPDOLW\OHVVSURFHGXUDOKDVVOHV
KLJKLQWHUHVWUDWHRQGHSRVLWVDQGHDV\DFFHVVWRFUHGLWDUHVWDWHGWREHWKHPDMRU
UHDVRQV IRU XVLQJ WKHVH LQWHUPHGLDULHV +HQFH UHGXFLQJ KDVVOHV DQG WKH OHQJWK RI
WLPHIRUSURFHVVLQJVHUYLFHVPD\KHOSHQKDQFHWKHEXVLQHVVYROXPHRI0, V $OVR
E\ SURYLGLQJ KLJKHU LQWHUHVW UDWH RQ GHSRVLWV PD\ UHGXFH LQFHQWLYHV WR XVH RWKHU
ILQDQFLDOLQWHUPHGLDULHVDQGKHOS0, V WRLQFUHDVHWKHLUGHSRVLWJURZWK

7KH IHHGEDFN RI FXVWRPHUV LQFOXGH WKH GHPDQG IRU DGGLWLRQDO IDFLOLWLHV XSJUDGLQJ
PRGHUQ WHFKQRORJLHV SURYLVLRQ RI TXLFN DQG RI LQWHUQDWLRQDOFODVV VHUYLFHV
WUDQVSDUHQF\ LQ WUDQVDFWLRQV ZLWK WKH FXVWRPHUV RSHQLQJ EUDQFKHV$70V LQ
FORVXUHVVWULNHVOLNHVLWXDWLRQVROYLQJFDVKVKRUWDJHSUREOHPVWKDWRFFXUVRQVRPH
VSHFLILF RFFDVLRQV DPRQJ RWKHUV &RQVLGHULQJ WKHVH LVVXHV DQG LPSOHPHQWLQJ
UHDVRQDEOH VXJJHVWLRQV PD\ KHOS HQKDQFH WKH EXVLQHVV RI 0, V  DQG KHQFH DUH
UHFRPPHQGHG

,1752'8&7,21
&XVWRPHU%HKDYLRU6WXG\IRUPVDEDVLVIRUPDNLQJVHYHUDOVWUDWHJLHVDQGGHFLVLRQV
UHODWHG WR D FRPSDQ\LQGXVWU\ 6HYHUDO UHVHDUFKHV ZHUH FRQGXFWHG HDFK \HDU MXVW
WRVWXG\WKHEHKDYLRURIFXVWRPHUWKHLUFKRLFHVDQGSUHIHUHQFHVDQGWKHUHDVRQV
DVVRFLDWHG 5DWH RI DGRSWLRQ RI D QHZO\ LQWURGXFHG WHFKQRORJ\ E\ WKH FXVWRPHUV
FXVWRPHUV OR\DOW\ FXVWRPHUV UHWHQWLRQ HWF DUH VRPH RI WKH LVVXHV RI LQWHUHVW WR
WKH UHVHDUFKHUV DV ZHOO DV UHODWHG LQGXVWULHV 7KHVH W\SHV RI UHVHDUFK LGHQWLI\ WKH
EHKDYLRUDQGUHVSRQVHRIWKHSXEOLFWRZDUGVDSDUWLFXODULGHDWHFKQRORJ\SURGXFW
RUVHUYLFHDQGDUHXVHGWRGHVLJQWKHVWUDWHJ\DFFRUGLQJO\

$OOWKHLQGXVWULHVLQWKHZHVWKDYHDSHUPDQHQWUHVHDUFKGLYLVLRQDVZHOODVEX\WKH
VHUYLFHVRIFRQVXOWLQJDJHQFLHVIRUWKLVSXUSRVHDQGWKHUHLVDKXJHLQYHVWPHQWLQ
WKLV VHFWRU +RZHYHU WKHUH LV D VHYHUH GURXJKW RI UHVHDUFK UHODWHG WR 1HSDOHVH
EDQNLQJ VHFWRU DQG WKH FXVWRPHU EHKDYLRU DQDO\VLV LV QRW WKH H[FHSWLRQ 8VXDOO\
WKHQHHGDVZHOODVHIIHFWRIVXFKUHVHDUFKKDVQRWEHHQLGHQWLILHGLQ1HSDODQGWKH
PDQDJHPHQWVHHVQRUHOHYDQFHRIWKLVWRWKHLUEXVLQHVVHV7KHUHIRUHWKHUHVHHPV
D GLUH QHHG IRU VXFK W\SHV RI UHVHDUFKHV :LWK WKH HQKDQFHPHQW LQ WKH UHVHDUFK
UHODWHG WR WKH EDQNLQJ VHFWRU WKH LQGXVWU\ PD\ DFNQRZOHGJH VRPH RI WKH FULWLFDO
LVVXHV KLJKOLJKWHG E\ WKH UHVHDUFK SUDFWLFDOO\ LPSOHPHQW WKHVH ILQGLQJ LQ WKHLU
EXVLQHVV DQG FRXOG EHQHILW IURP VXFK HQGHDYRUV LQ WKH ORQJ UXQ 7KLV UHVHDUFK
FRXOGEHFRQVLGHUHGWREHDPRQJWKHILUVWRIVXFKNLQG%HVLGHVHQKDQFLQJDFFHVV
WR ILQDQFLDO VHUYLFHV DV ZHOO DV WR LQFUHDVH WKH UHDFK RI EDQN DQG ILQDQFLDO
LQVWLWXWLRQVVRPHVRUWRIVXUYH\LVQHFHVVDU\$OWKRXJKWKLVUHVHDUFKLVIRFXVHGRQ
WKHFRQVXPHUVRI.DWKPDQGX9DOOH\IXUWKHUUHVHDUFKPXVWEHFDUULHGRXWWRLQFOXGH
EDQNVRXWVLGHYDOOH\+RZHYHUHYHQWKHGDWDIURPWKLVVXUYH\VXIILFLHQWO\VKRZHG
WKDWHQKDQFLQJDFFHVVWRILQDQFLDOVHUYLFHLVDIDUJRDOHYHQLQDUHDOLNH.DWKPDQGX
ZKLFKZLOOEHHYLGHQWDVZHSURFHHG

0(7+2'2/2*<
7KHVXUYH\ZDVSODQQHGWRFRYHURQO\WKH0, V RI1%$ DWWKDWWLPH +RZHYHU
WKH GDWD UHSUHVHQWV WR VRPH H[WHQW FRPPHUFLDO EDQNV DQG GHYHORSPHQW EDQNV




%DQNLQJ-RXUQDO9ROXPH ,VVXH 

SXEOLF DQG SULYDWH FRPPHUFLDO EDQNV IRUHLJQ MRLQW YHQWXUH EDQNV HWF )RU WKLV
UHVHDUFKRQO\RQHVHOHFWHGEUDQFK WRWKHH[WHQWSRVVLEOHKHDGRIILFHRUWKHPDLQ
EUDQFKRSHUDWLQJLQVLGHWKH.DWKPDQGX9DOOH\ ZDVLQFOXGHG6LPLODUO\WKHVXUYH\
ZDV GHVLJQHG WR FROOHFW GDWD IURP  UDQGRP VDPSOHV UHVSRQGHQWV  IURP HDFK
EUDQFKRIWKH0,7KXVWKHWRWDOVDPSOHVL]HRIUHVSRQGHQWVZDVHVWLPDWHGWR
KDYH EHHQ FROOHFWHG IRUWKLV UHVHDUFK $ UHVSRQGHQWUHIHUV WR WKHEDQNV FXVWRPHU
ZKR YLVLWHG WKH VHOHFWHG EUDQFK RQ WKH GD\ RI VXUYH\ 5HVSRQGHQWV ZHUH DVNHG D
VHW RI TXHVWLRQV DOUHDG\ SUHSDUHG 6HPLVWUXFWXUHG TXHVWLRQQDLUH ZDV SUHSDUHG LQ
DGYDQFHIRUWKLVSXUSRVHZKLFKZDVDOUHDG\SUHWHVWHGRQDVDPSOHRIDURXQG
UHVSRQGHQWV +RZHYHU WKHVH SUHVXUYH\ WHVW GDWD ZHUH QRW XVHG DQG ZHUH
GXPSHG )URP WKH LGHD JHQHUDWHG IURP WKLV SUHVXUYH\ D UHYLVHG VHW RI
TXHVWLRQQDLUH ZDV PRGHOHG IRU WKH LQWHQGHG VXUYH\ 7KH VXUYH\ ZDV FRQGXFWHG
IURP$SULOWR-XQH

,Q FRXUVH RI WKH VXUYH\ D IHZ VDPSOHV IURP VRPH RI WKH 0, V  ZDV PLVVHG IRU
H[DPSOH  RXW RI  EDQNV ZHUH RQO\ VXUYH\HG  ZKLFK ZDV ODWHU RQ FROOHFWHG
UHVXUYH\ DW WKH HQG RI VXUYH\ ZDV GRQH  DQG FRPSOHWHG $JDLQ LQ VRPH RI WKH
0, V  VRPH DGGLWLRQDO GDWD ZDV FROOHFWHG 7KH DGGLWLRQDO GDWD ZDV VHOHFWHG
UDQGRPO\DQGGXPSHG%HVLGHVWKLVGXHWRWKHODFNRIEDQNLQJWUDQVDFWLRQVLQRQH
RI WKH 0, V  LW ZDV GURSSHG IURP WKH VXUYH\ DQG ILQDOO\ D WRWDO RI  0, V  RQO\
ZHUHVXUYH\HG'DWDZHUHFROOHFWHGIURPDWRWDOVDPSOHVL]HRIUHVSRQGHQWV

'DWD ZHUH HQWHUHG DQG SURFHVVHG LQ WKH GLJLWDO IRUP DQG FKHFNHG IRU
LUUHJXODULWLHVLQFRQVLVWHQFLHV DQG IRU WKH PLVVLQJ LQIRUPDWLRQ 'XH WR ODFN RI VRPH
DQVZHUV PLVVLQJLQIRUPDWLRQ DVZHOODVGXHWRLUUHJXODULWLHVLQFRQVLVWHQFLHVLQWKH
DQVZHUVDIHZVDPSOHVZHUHGURSSHGIURPWKHDQDO\VLV7KXVWKHILQDOVL]HXVHG
IRU GDWD DQDO\VLV LQ WKLV UHVHDUFK ZDV  VDPSOHV 'DWD ZHUH DQDO\]HG ZLWK WKH
KHOSRIVLPSOHVWDWLVWLFDOPHDVXUHV

5(68/76$1'',6&866,216
'HPRJUDSKLF FKDUDFWHULVWLFV RI WKH VDPSOHG UHVSRQGHQWV SOD\ D YLWDO UROH LQ
GHWHUPLQLQJ WKHLU SUHIHUHQFHV DQG FKRLFH +HQFH PRVW UHVHDUFKHUV GHDO ZLWK WKLV
LQIRUPDWLRQ ZLWK XWPRVW LPSRUWDQFH 6LQFH EDQNLQJ EHKDYLRU DQG SUHIHUHQFHV DOVR
GHSHQG XSRQ GHPRJUDSKLFV RI WKH FXVWRPHUV LW ZDV GHDOW KHUHLQ 7DEOH   $JH
HGXFDWLRQ RFFXSDWLRQ DQG VHYHUDO RWKHU FKDUDFWHULVWLFV RI VDPSOHV ZHUH DQDO\]HG
IURP WKH DYDLODEOH GDWD $YHUDJH DJH RI WKH UHVSRQGHQWV ZDV IRXQG WR EH DURXQG
\HDUV7KLVVKRZVWKDWPRVWRIWKHFXVWRPHUVDUHRI\RXQJDJH7KLVPLJKWDOVR
VKRZ WKDW UHODWLYHO\ DJHG SHRSOH HLWKHU GR QRW SUHIHU RU DUH RXW RI WKH UHDFK RI
IRUPDO EDQNLQJ FKDQQHOV 6WUDWHJ\ WR EULQJ DOO DJH JURXSV LQ WKH EDQNLQJ
PDLQVWUHDPLVWKHQHHGRIEDQNLQJVHFWRUDWSUHVHQW6LPLODUO\GDWDVKRZHGWKDWRI
WKHWRWDOFXVWRPHUVVXUYH\HGRQO\DURXQGDUHIHPDOHV$OWKRXJKPRVWRIWKH
IHPDOH FXVWRPHUV ZHUH DSSURDFKHG DQG PRVW RI WKH DSSURDFKHG RQHV ZHUH
LQWHUYLHZHG IRU WKLV UHVHDUFK WKH ORZ OHYHO RI WKHLU UHSUHVHQWDWLRQ VKRZHG WKDW
PRUH IHPDOHV DUH VWLOO WR MRLQ WKH IRUPDO EDQNLQJ V\VWHP ,W PD\ DOVR VKRZ WKH
VHSDUDWHUROHRIJHQGHULQWKHWUDGLWLRQDOVRFLHWDOV\VWHPSUHYDLOLQJLQ1HSDOZKHUH
XVXDOO\PDOHVDUHLQYROYHGLQWKHHFRQRPLFDFWLYLWLHVDQGRXWVLGHWKHKRXVHZRUNV
'HVSLWHWKHUHFHQWFKDQJHVLQWKHUROHRIIHPDOHVLQFOXGLQJKLJKGHJUHHRIHFRQRPLF
IUHHGRPWKLVUHVHDUFKIRXQGORZOHYHOVRIHFRQRPLFLQYROYHPHQWRIIHPDOHV




%DQNLQJ-RXUQDO9ROXPH ,VVXH 


'DWDDOVRVKRZHGWKDWPRVWRIWKHUHVSRQGHQWVDUHJUDGXDWHV DURXQG ZKLFK
DJDLQVKRZHGWKHDEXQGDQWDFFHVVRIOLWHUDWHSHRSOHLQWKHIRUPDOEDQNLQJV\VWHP
&RQVLGHULQJ KLJKHVW IDPLO\ HGXFDWLRQ RQO\  DUH QRQJUDGXDWHV DJDLQ VKRZLQJ
GRPLQDQFH RI HGXFDWHG DQG KLJK FODVV IDPLO\ LQ WKH IRUPDO EDQNLQJ V\VWHP $V
ZRXOG EH REYLRXV PRVW RI WKH UHVSRQGHQWV DUH HLWKHU VHOIHPSOR\HG   RU
HPSOR\HG LQ RWKHU RUJDQL]DWLRQV   LQFOXGLQJ ERWK SXEOLF DQG SULYDWH
RUJDQL]DWLRQV ZLWK DYHUDJH PRQWKO\ LQFRPH RI DERYH 135 1HSDOHVH 5XSHHV 
 $V LW LV JHQHUDOO\ VWDWHG WKDW WKH HDVWHUQ SDUW RI 1HSDO LV PRUH DGYDQFHG
WKDQ WKH ZHVWHUQ SDUW GDWD DOVR VKRZHG KLJKHU LQYROYHPHQW RI SHRSOH IURP WKH
HDVWHUQSDUWRI1HSDO KHUHHDVWHUQSDUWLVFRQVLGHUHGWREHWKRVHSDUWVWKDWDUHRQ
WKH HDVW RI 1DU\DQJDGK.DWKPDQGX EHOW  $YHUDJH IDPLO\ VL]H RI  PHPEHUV ZDV
DOVR IRXQG ,W VKRXOG EH QRWHG KRZHYHU WKDW WKLV UHVHDUFK LV EDVHG RQO\ RQ WKH
GDWD FROOHFWHG IURP .DWKPDQGX YDOOH\ ZKLFK FRXOG KDYH DIIHFWHG WKH UHVXOWV DQG
PD\QRWEHJHQHUDOL]HGIRUWKHZKROHFRXQWU\

2IWKHUHVSRQGHQWVGHFODULQJWKHLUEDQNEDODQFHDQGFDVKDWKDQGLWZDVIRXQGWR
EHDURXQG135DQG135UHVSHFWLYHO\,WLVLQWHUHVWLQJWRQRWHWKDW
SHRSOH ZHUH IRXQG WR KDYH NHSW D ODUJH DPRXQW RI FDVK DW KDQG PRUH WKDQ RQH
DQGKDOIWLPHVWKHDYHUDJHPRQWKO\LQFRPH 7KLVPD\EHGXHWRWKHIUHTXHQWFDVK
VKRUWDJHV FRPSHOOLQJ EDQNV WR UHGXFH WKHLU FDVK ZLWKGUDZDO OLPLWV WKDW IRUFHG
SHRSOH WR NHHS D ODUJH DPRXQW RI FDVK WR PHHW WKHLU VHYHUDO QHHGV DV ZLOO EH
GLVFXVVHGODWHU

7KHVXUYH\DOVRUHYHDOHGWKDWDURXQGRIWKHUHVSRQGHQWVKDGPRUHWKDQRQH
EDQN DFFRXQW ZKLFK RQ WKH DYHUDJH DPRXQWV WR DURXQG WZR EDQN DFFRXQWV SHU
LQGLYLGXDO 6LPLODUO\ DURXQG  RI WKH UHVSRQGHQWV KDYH $70&DUGV DQG RXW RI
WKHPDURXQGKDYHLWIRUDOOWKHLUDFFRXQWV,QWKLVUHVHDUFK$70&DUGVUHIHU
WR$70'HELW&DUGVZKHUHYHUDSSOLFDEOHVLQFHDOPRVWDOO$70&DUGVLQ1HSDOFRXOG
EHXVHGDV'HELW&DUGVWRR5HVSRQGHQWVDQVZHULQJWKHTXHVWLRQRQWKHDPRXQWRI
DQQXDO FKDUJHV RQ WKHLU $70&DUGV UHSOLHG WKDW WKH\ WKLQN WKH\ SD\ DURXQG 135
 DQQXDOO\ IRU WKLV VHUYLFH 0RVW RI WKH XVHUV DUH QRW DZDUH RI WKH FRVWV
DVVRFLDWHG LQFOXGLQJ WKDW IRU XVLQJ $70&DUGV IRU VKRSSLQJ GXULQJ RIIKRXUV HWF
2XW RI WKH WRWDO UHVSRQGHQWV VXUYH\HG RQO\ DURXQG  UHVSRQGHQWV   KDG
WDNHQ ORDQV IURP WKHLU EDQNV 7KH DYHUDJH ORDQ VL]H ZDV VOLJKWO\ OHVV WKDQ WZR
PLOOLRQ1HSDOHVHUXSHHV






%DQNLQJ-RXUQDO9ROXPH ,VVXH 

7DEOH'HPRJUDSKLFVRIWKHVDPSOHG5HVSRQGHQWV
W

'D





E

'

K
^



^

K

Z


t

&^
D
,&D
E

'

K&D

D/
EWZ
d

,

,

E

,dD

dD

dD
EWZdD

EWZ


5HVSRQGHQWV ZHUH DOVR UHTXHVWHG WR GHVFULEH WKH TXDOLWLHV RI WKHLU EDQNV ZKLFK
PDGH WKHP FKRRVH WR GR EXVLQHVV RU RSHQ DFFRXQWV UHDVRQV IRU FKRRVLQJ WKHLU
EDQN  7KHUH ZHUH VHYHUDO SUHVSHFLILHG RSWLRQV SURYLGHG IRU VRPH RI WKH VSHFLILF
DWWULEXWHV DV ZHOO DV UHVSRQGHQWV ZHUH SURYLGHG ZLWK RSWLRQV WR VSHFLI\ WKHLU RZQ
UHDVRQV 7RS WHQ UHDVRQV WKDW WKH UHVSRQGHQWV FRQVLGHUHG WR EH LPSRUWDQW WR
FKRRVH WKDW SDUWLFXODU EDQN KDG EHHQ HQOLVWHG 7DEOH   $URXQG  RI WKH
UHVSRQGHQWV VWDWHG WKDW WKH TXLFN VHUYLFH RI WKHLU EDQN OXUHG WKHP WR GR
WUDQVDFWLRQ ZLWK LW +DYLQJ $70 IDFLOLWLHV SOHDVDQW EHKDYLRU RI WKH IURQWGHVN
VWDII DQG YLFLQLW\ WR UHVLGHQFH RU RIILFH ZHUH RWKHU UHDVRQV IRU WKH FKRLFH 7KH
UHVXOWVVKRZHGWKDWSHRSOHSULRULWL]HVHUYLFHTXDOLW\ILUVWDQGWKHWHFKQRORJ\FRPHV
RQO\DIWHUWKLV%HVLGHVKDYLQJPDQ\EUDQFKHVDQG$70VDUHDOVRFRQVLGHUHGWREH
WKHPDMRUIDFWRUIRURSWLQJWRGREXVLQHVVZLWKDSDUWLFXODUEDQN

6LPLODUO\DURXQGRQHILIWKRIWKHUHVSRQGHQWVIHHOWKDWWKHUHOLDELOLW\RIWKHEDQNLV
LPSRUWDQW WR WKHP $JDLQ WKH FRQFHSW RI UHOLDELOLW\ GRHV QRW PHDQ WKH VWDWLVWLFDO
VWUHQJWK RI D EDQN FODVV RI D EDQN RU HYHQ WKH EUDQG QDPH ,W ZDV IRXQG WKDW
UHVSRQGHQWVWKDWFRQVLGHUWKHLUEDQNWREH5 6 5HOLDEOHDQG6WURQJ ZHUHHTXDOO\
GLVWULEXWHG DPRQJ SULYDWH DQG SXEOLF EDQNV QHZ DQG ROG EDQNV  \HDUV ZDV
FRQVLGHUHGWREHWKHVHSDUDWLQJOLQH DQGDOVREHWZHHQGLIIHUHQWFODVVHVRIEDQNV
WKDWLVFRPPHUFLDOEDQNVDQGGHYHORSPHQWEDQNV 7KXVHYHQWKHFXVWRPHUVIURP
QHZEDQNVDQGRUGHYHORSPHQWEDQNVZHUHHTXDOO\FRQILGHQWWKDWWKH\KDGFKRVHQ
WKHP EHFDXVH WKH\ IHOW WKDW LW LV 5 6 6LQFH WKH VXUYH\ GRHV QRW IRFXVHG RQ WKH
HODERUDWLRQRIWKHFRQFHSWRI5 6LWZDVGLIILFXOWWRXQGHUVWDQGDQGDQHZUHVHDUFK
PD\EHUHTXLUHGWRXQGHUVWDQGZKDWWKHFXVWRPHUDFWXDOO\PHDQWE\5 6





%DQNLQJ-RXUQDO9ROXPH ,VVXH 

7DEOH  7RS  DWWULEXWHV RI WKH 0, V  SUHIHUUHG E\ &XVWRPHUV 5HDVRQ
IRUFKRRVLQJWKH0, V WKH\DUHXVLQJDWSUHVHQW 

WZ
Z
Y^


dD


W


E


/


D


Z^


,D


,dD


^



6HUYLFHXVDJHDQGRWKHUEHKDYLRURIWKHUHVSRQGHQWVZHUHDOVRDQDO\]HG 7DEOH 
2QO\DURXQGRIWKHUHVSRQGHQWVVWDWHGWKDWWKH\XVH&KHTXHVRQWKHUHJXODU
EDVLVIRUFDVKZLWKGUDZDOV$GGLQJWRLWZKRXVH&KHTXHVVRPHWLPHVWKHGDWD
VKRZHGWKDWXVHRI&KHTXHVDOWKRXJKLWDPRXQWVVLJQLILFDQWO\DWSUHVHQWLVRQWKH
GHFUHDVLQJWUHQG:LWKWKHLQWURGXFWLRQRI$70SHRSOHDUHPRUHLQWHUHVWHGWRXVH
WKLVVHUYLFHPD\EHGXHWROHVVKDVVOHVOHVVTXHXHVDQGHDVHLQDFFHVV7KHWUHQG
WKXV VKRZV WKDW LQ WKH FRPLQJ \HDUV &KHTXHV ZLOO EH JUDGXDOO\ UHSODFHG E\ $70V
DQG ZLOO RQO\ EH OLPLWHG WR WKH EXVLQHVV WUDQVDFWLRQV UDWKHU WKDQ SHUVRQDO
WUDQVDFWLRQV $V REYLRXV $70 XVHUV VKDUH D ODUJH SRUWLRQ RI DURXQG  RI WKH
WRWDOUHVSRQGHQWVZKRXVHWKLVIDFLOLW\IUHTXHQWO\IRUFDVKZLWKGUDZDOV  DQG
VRPHWLPHV IRU VKRSSLQJ   $OWKRXJK XVHUV RI $70 KDYH EHHQ LQFUHDVLQJ
DURXQGKDOIRIWKHPGRQRWNQRZVHYHUDOWKLQJVDERXWLWLQFOXGLQJFKDUJHV  
$OVRWKHXVHUVDUHQRWXSGDWLQJRUFKDQJLQJ3,1QXPEHULQRUGHUWRSURWHFWIUDXG
RU PLVXVH 'DWD VKRZHG WKDW DOWKRXJK WKH 'HELW&DUG KROGHUV FRPSULVH D ODUJH
SRUWLRQ RI EDQN FXVWRPHUV &UHGLW&DUG LV QRW FDWFKLQJ XS OLNH LQ WKH IRUHLJQ
FRXQWULHVZKHUHLWLVWKHSRSXODURQH$OWKRXJKRQO\RIWKHUHVSRQGHQWVZHUH
IRXQG WR EH XVLQJ WKH IDFLOLW\ RI &UHGLW&DUG LW FRXOG EH GHEDWHG DV D VLJQLILFDQW
SURSRUWLRQ JLYHQ WKH 1HSDOHVH FRQWH[W 7KH IDFW WKDW EDQNV QHHGV VHYHUDO
LQIRUPDWLRQ DERXW WKH FXVWRPHU D IL[HG LQFRPH PRUH WKDQ D SUHGHWHUPLQHG
WKUHVKROG HWF LQ RUGHU WR LVVXH WKH &UHGLW&DUG LW PD\ EH WKH UHDVRQ IRU OHVV
SRSXODULW\RIWKLVLQVWUXPHQW(DVLQJXSWKHVHLVVXHVPD\EHKHOSIXOWRLQFUHDVHWKH
XVDJHRIWKHVH&DUGV6LPLODUO\RQO\RIWKHUHVSRQGHQWVKDYHEHHQXVLQJORDQ
IDFLOLWLHV RI EDQNV 7KLV PD\ EH GXH WR WKH FXOWXUH RI JHQHUDO SHRSOH 1HSDOHVH
SXEOLF  WR QRW FRQVLGHU ORDQV DV D PHDQV IRU LQYHVWPHQW $OWKRXJK WKH WUHQG KDV
FKDQJHG D ORW DQG SHRSOH QRZDGD\V RSW IRU VHYHUDO W\SHV RI ORDQV WR HQMR\ WKH
SUHVHQWZLWKWKHFRVWRIIXWXUHWKHSUHVHQWQXPEHUVHHPVQRWWREHVXIILFLHQWDQG
FRXOG EH LQFUHDVHG ZLWK HIIHFWLYH VWUDWHJ\ 3URYLGLQJ PRUH IDFLOLWLHV ORZHULQJ
LQWHUHVWUDWHVFUHDWLQJDZDUHQHVVDQGHQFRXUDJLQJFRQVXPHULVPPD\EHKHOSIXOWR
H[SDQGWKHOHQGLQJVHUYLFHVRIWKH0, V 







%DQNLQJ-RXUQDO9ROXPH ,VVXH 

7DEOH8VHRI6HUYLFHV
^
h

h
h
^
z
z
z
z
z
z
z

WZ










,dD
hdD
h
EdDW/E
<dD
,
,

3UHIHUHQFHV RI WKH UHVSRQGHQWV WRZDUGV GLIIHUHQW EHKDYLRUV UHODWHG WR ILQDQFLDO
DFWLYLWLHV ZHUH DQDO\]HG 7DEOH   )RU LQVWDQFH ZK\ WKH\ KROG D ODUJH DPRXQW RI
FDVKDWKDQGZK\WKH\KDYHDFFRXQWVLQPRUHWKDQRQHEDQNZK\WKH\GRQRWXVH
$70&DUGV DQG VR RQ DUH IRFXVHG 7KH PDMRU UHDVRQV IRU HDFK TXHU\ WKDW WKH
UHVSRQGHQWVSRLQWHGDUHUDQNHGE\WKHIUHTXHQF\RILWVUHSHWLWLRQ,QFDVHRIODUJH
DPRXQWRIFDVKKROGLQJVUHVSRQGHQWVRSLQHGWKDWLWLVEHLQJKHOGIRUGDLO\XVHDQG
HPHUJHQF\ DOWKRXJK  RI WKHP FRXOG QRW ILJXUH RXW WKH H[DFW UHDVRQ $V
DOUHDG\GLVFXVVHGVHYHUDOLQVWDQFHVRIFDVKVKRUWDJHLQWKHEDQNVPD\KDYHOHGWR
VXFK EHKDYLRU RI WKH SHRSOH VLQFH WKHUH DUH RQO\  RI FDVHV ZKHUH FXVWRPHUV
KDYHVSHFLILFSXUSRVHIRUWKHFDVKDWKDQG EXVLQHVVWUDQVDFWLRQV 7KXV15%FRXOG
SOD\DQLPSRUWDQWUROHLQWKLVUHJDUGWRLPSURYHWKHVLWXDWLRQE\VXSSO\LQJVXIILFLHQW
OLTXLGLW\LQWKHPDUNHW:LWKWKHFRQILGHQFHWKDWWKH\ZLOOEHSURYLGHGZLWKFDVKRQ
GHPDQG WR DQ XQOLPLWHG DPRXQW WKH FXVWRPHU EHKDYLRU PLJKW FKDQJH WR VRPH
H[WHQW DQG PRUH PRQH\ PLJKW FRPH EDFN WR WKH EDQNLQJ FKDQQHO UDWKHU WKDQ
UHPDLQLQJLGOHLQKDQG6LPLODUO\RIWKHUHVSRQGHQWVKDYLQJVHYHUDOEDQNDFFRXQWV
WKHPDMRULW\H[SODLQHGWKHVHDVDPHDQVRIPDNLQJWUDQVDFWLRQHDV\DQGDFFHVVLEOH
ZKHUHYHU WKH\ DUH DQG ZKHQHYHU WKH\ QHHG )RU LQVWDQFH LI D SHUVRQ PDLQWDLQHG
DFFRXQWV LQ VHYHUDO EDQNV DQG SXW VRPH FDVK LQ DOO RI WKHVH WKH SUREDELOLW\ WKDW
KHVKHZLOOEHDEOHWRZLWKGUDZFDVKIURPDQ\ORFDWLRQVZLOOEHKLJKVLQFHGLIIHUHQW
EDQNV KDYH EUDQFKHV$70V DW GLIIHUHQW SODFHV %HVLGHV DFFHVVLELOLW\ EXVLQHVV DQG
FOLHQWQHHGLVWKHVHFRQGGHWHUPLQLQJIDFWRUDQGWKHUHDVRQIRURIUHVSRQGHQWV
WRKROGPRUHWKDQDVLQJOHDFFRXQW'LIIHUHQWLDOSURGXFWVDQGVHUYLFHVDOVRDFFRXQW
IRU  RI WKLV EHKDYLRU 7KLV PHDQV WKDW SURYLGLQJ FXVWRPHUV ZLWK YDULHWLHV RI
WDVWHVLQWKHSURGXFWVDQGVHUYLFHVPD\HQKDQFHWKHEXVLQHVVYROXPHRIDQ\EDQN
5HVSRQGHQWV QRW KDYLQJ DQ\ $70&DUGV IHHO WKDW WKH\ GR QRW QHHG LW RU KDYH QR
VSHFLILF UHDVRQV WR XVH LW 2QO\  RI WKH UHVSRQGHQWV VWDWHG ODFN RI NQRZOHGJH
EHLQJ WKH UHDVRQ IRU QRW XVLQJ $70&DUGV 6SHFLDO SDFNDJHV IRU $70XVHUV DQG
VRPHSURPRWLRQDODQGDZDUHQHVVFUHDWLQJDFWLYLWLHVPD\KHOSERRVWWKHXVHRIWKLV
PRGHUQWHFKQRORJ\PD\EHHVSHFLDOO\WDUJHWHGIRUPLGGOHWRROGDJHGSHRSOHVLQFH
\RXQJSHRSOHKDGDOUHDG\DWDVWHIRULW

0RVW RI WKH UHVSRQGHQWV WKDW XVH ILQDQFLDO LQWHUPHGLDULHV RWKHU WKDQ 0, V  VWDWHG
LQWHUHVW UDWH EHLQJ WKH GHWHUPLQLQJ IDFWRU /RZ UDWH RI LQWHUHVW LQ WKH GHSRVLW EXW
KLJK LQWHUHVW UDWHV LQ OHQGLQJ GLVFRXUDJHV WKH UHVSRQGHQWV WR XVH 0, V  DQG WKH\
SUHIHUUHG RWKHU ILQDQFLDO LQWHUPHGLDULHV %HVLGHV UHGXFHG KDVVOHV HDVH LQ DFFHVV




%DQNLQJ-RXUQDO9ROXPH ,VVXH 

DQG OHVV QHHG RI IRUPDOLW\ IRUPDO SURFHGXUHV  DUH FRQVLGHUHG PDMRU UHDVRQV IRU
XVLQJWKHVHJURXSVRIILQDQFLDOLQWHUPHGLDULHV

7DEOH5HDVRQIRU3UHIHUHQFH
W
Z Z
Z
Z,




KE







Z     
/

D/






^W
ZdD

,K


E


>

Z     




E


W

Z     
,

/D&/ 
D

&/



Z      
>

D&/




:LWK WKH PRGHUQL]DWLRQ LQ EDQNLQJ WHFKQRORJ\ 0, V  KDYH LQWURGXFHG VHYHUDO
PRGHUQ DQG ZRUOGFODVV WHFKQRORJLHV +RZHYHU DURXQG KDOI RI WKH FXVWRPHUV
ODFNHG NQRZOHGJH RI RQH RU PRUH RI WKHVH DQG D VWURQJ QHHG RI DZDUHQHVV
FDPSDLJQH[LVWV )LJXUH $PRQJWKHWHUPLQRORJLHVHQOLVWHGIRUWKLVVXUYH\VRPH
VHHPWREHHQWLUHO\QHZWRWKHFXVWRPHUV0RUHWKDQRIWKHFXVWRPHUVDUHQRW
DZDUH ZKDW LW PHDQV E\ 8WLOLW\ SD\PHQW DQG (0, (TXDWHG 0RQWKO\ ,QVWDOOPHQWV 
6LPLODUO\ PRUH WKDQ  IHHO QHZ WR 606 6KRUW 0HVVDJLQJ 6HUYLFHV  DQG 0RELOH
%DQNLQJ6&7 6PDUW&KRLFH7HFKQRORJ\ DQG$%%6 $Q\%UDQFK%DQNLQJ6\VWHP 
1HDUO\ KDOI RI WKH UHVSRQGHQWV ZHUH DOVR XQDZDUH RI &DUG6\VWHPV DQG ,QWHUQHW
%DQNLQJ (YHQ WKH VLPSOHVW OLNH GLIIHUHQW W\SHV RI GHSRVLW SURGXFWV $70 LQWHUHVW
UDWH DUH XQNQRZQ WR VRPH RI WKH FXVWRPHUV 7KH XUJHQW QHHG LV WKDW WKH EDQNV
HGXFDWHWKHLUFXVWRPHUVDERXWVXFKWHUPLQRORJLHVDQGVHUYLFHVWKH\DUHSURYLGLQJ
WRWKHPPD\EHWRJHWKHUZLWKWKHDVVRFLDWHGFKDUJHVLQXVLQJVXFKIDFLOLWLHV






%DQNLQJ-RXUQDO9ROXPH ,VVXH
%DQNLQJ-RXUQDO9ROXPH ,VVXH 

)LJXUH3HUFHQWDJHRIFXVWRPHUVXQIDPLOLDUZLWKWKHEDQNLQJWHUPV
)LJXUH3HUFHQWDJHRIFXVWRPHUVXQIDPLOLDUZLWKW
KHEDQNLQJWHUPV




/HYHOV RI WUDQVDFWLRQV RI WKH UHVSRQGHQWV ZLWK LQVWLWXWLRQV
LQVWLWXWLRQV RWKHU WKDQ 0, V  DUH
UHFRUGHGLQWKHWDEOH 7DEOH $URXQGRIWKHUHVSRQGHQWVKDGWDNHQORDQIURP
UHFRUGHGLQWKHWDEOH 7DEOH $URXQGRIWKHUHVSRQGHQWVKDGWDNHQORDQIURP
LQGLYLGXDOV IULHQGV
IULHQGV DQG UHODWLYHV  DV ZHOO DV  RI WKHP KDG SURYLGHG ORDQV
ORDQV WR
RWKHULQGLYLGXDOV7KHDYHUDJHORDQDPRXQWWDNHQIURPLQGLYLGXDOVZDVDURXQG135
RWKHULQGLYLGXDOV7KHDYHUDJHORDQDPRXQWWDNHQIURPLQGLYLGXDOVZDVDURXQG135
DQGWKHDYHUDJHLQWHUHVWUDWHZDVDURXQG6LPLODUO\RQWKHDYHUDJH
DQGWKHDYHUDJHLQWHUHVWUDWHZDVDURXQG6LPLODUO\RQWKHDYHUDJH
WKHUHVSRQGHQWVKDGSURYLGHGORDQ DPRXQWVRIDURXQG135WRLQGLYLGXDOVDW
WKHUHVSRQGHQWVKDGSURYLGHGORDQDPRXQWVRIDURXQG135WRLQGLYLGXDOVDW
WKHUDWHRI2QWKHRWKHUKDQGWKHUHVSRQGHQWV KDGDOVRGHSRVLWHGPRQH\LQ
WKHUDWHRI2QWKHRWKHUKDQGWKHUHVSRQGHQWVKDGDOVRGHSRVLWHGPRQH\LQ
WKH LQVWLWXWLRQV RWKHU WKDQ 0, V    ZLWK WKH DYHUDJH
DYHUDJH GHSRVLW VL]H RI DURXQG
135  DQG DW WKH LQWHUHVW UDWH RI DURXQG 
 RQ WKH DYHUDJH 6LPLODUO\
DURXQG  RI WKHVH UHVSRQGHQWV DUH ERUURZHUV IURP WKH
WKH LQVWLWXWLRQV RWKHU WKDQ
0, V ZLWKWKHDYHUDJHORDQVL]HRIDURXQG1357KHLQWHUHVWUDWHIRUWKHVH
0, V ZLWKWKHDYHUDJHORDQVL]HRIDURXQG1357KHLQWHUHVWUDWHIRUWKHVH
ORDQVZDVIRXQGWREHDURXQGRQWKHDYHUDJH
ORDQVZDVIRXQGWREHDURXQGRQWKHDYHUDJH

7KLV VKRZHG WKDW
WKDW LQWHUHVW UDWH RQ GHSRVLW IURP WKHVH LQVWLWXWLRQV
LQVWLWXWLRQV LV YHU\ KLJK
FRPSDUHG WR WKDW SURYLGHG E\ PRVW RI WKH 0, V  >DOWKRXJK
>DOWKRXJK D SDUDOOHO LQFUHDVH KDV
EHHQ VHHQ RQ LQWHUHVW UDWHV RI DOO W\SHV RI LQVWLWXWLRQV
LQVWLWXWLRQV UHFHQWO\ DQG WKH GDWD PD\
VHHP REVROHWH EXW WKH LQIHUHQFHV
LQIHUHQFHV HTXDOO\ DSSOLHV HYHQ DW SUHVHQW@ ,QFUHDVLQJ
,QFUHDVLQJ
LQWHUHVWUDWHFRXOGKHOSEULQJWKLVPRQH\DQGLVEHQHILFLDOIRULQFUHDVLQJGHSRVLWRI
LQWHUHVWUDWHFRXOGKHOSEULQJWKLVPRQH\DQGLVEHQHILFLDOIRULQFUHDVLQJGHSRVLWRI
WKH0, V 6LPLODUO\DOWKRXJKLQWHUHVWUDWHRQOHQGLQJZDVUHODWLYHO\KLJKHULQWKHVH
WKH0, V 6LPLODUO\DOWKRXJKLQWHUHVWUDWHRQOHQGLQJZDVUHODWLYHO\KLJKHULQWKHVH
LQVWLWXWLRQVEXWPD\EHDVDOUHDG\VWDWHGOHVVKDVVOHVDQGIRUPDOLWLHVUHTXLUHGDV
LQVWLWXWLRQVEXWPD\EHDVDOUHDG\VWDWHGOHVVKDVVOHVDQGIRUPDOLWLHVUHTXLUHG
HDG\VWDWHGOHVVKDVVOHVDQGIRUPDOLWLHVUHTXLUHG
ZHOODVPD\EHGXHWROHVVQHHGRIFROODWHUDO RUWKHKLJKHUYDOXDWLRQ PD\EHWKH
ZHOODVPD\EHGXHWROHVVQHHGRIFROODWHUDO RUWKHKLJKHUYDOXDWLRQ PD\EHWKH




%DQNLQJ-RXUQDO9ROXPH ,VVXH 

PDMRU UHDVRQ IRU ERUURZLQJ IURP WKHVH LQVWLWXWLRQV &KDQJLQJ SROLFLHV WR UHGXFH
KDVVOH DQG H[SHGLWH WKH SURFHVV RI ORDQ SURFHVVLQJ PD\ EH LPSRUWDQW LQ WKLV
UHJDUGIRUWKHEDQNLQJLQGXVWU\HVSHFLDOO\IRU0, V 

7DEOH&XVWRPHUWUDQVDFWLRQZLWKRWKHUWKDQ0HPEHU%),V
dd
d

/


d    
D&/

'


   D 
&/












/Z










$V GLVFXVVHG DOUHDG\ WKH FXVWRPHUV ZKR KDYH VRPH VRUW RI WUDQVDFWLRQV ZLWK WKH
0, V  KDYH RWKHU IRUPDOLQIRUPDO EDQNLQJ WUDQVDFWLRQV WRR 7KLV PD\ VKRZ WKDW
WKHUHZDVVRPHWKLQJODFNLQJWKDWFRXOGEHLPSURYHGWROXUHWKHVHFXVWRPHUVWRXVH
WKHVHUYLFHVRI0, V RQO\:LWKUHJDUGWRWKHDGGLWLRQDOVHUYLFHVIDFLOLWLHVUHTXLUHG
 VWDWHG WKDW WKH\ ZLVK WR VHH DGGLWLRQDO VHUYLFHV DQG IHDWXUHV DQG PRGHUQ
WHFKQRORJLHVLQWKHEDQNVDQGRSLQHGLWZLOOLQFUHDVHWKHXVHRIWKHVHFKDQQHOVXS
WR WKH SRWHQWLDO 7DEOH   %HVLGHV SURYLGLQJ ZRUOGFODVV VHUYLFHV   KLJKHU
LQWHUHVW UDWH LQ WKH GHSRVLWV   LQFUHDVLQJ EUDQFK QXPEHUV   FRXOG EH RI
XVH 6RPH RI WKH UHVSRQGHQWV ZHUH RI WKH YLHZ WKDW LQGLIIHUHQW EHKDYLRU RI EDQN
VWDII XQOLNH VWDII RI RWKHU ILQDQFLDO LQWHUPHGLDU\ ZKRVH EHKDYLRU LV TXLWH SOHDVDQW
DQGSROLWHDUHPDNLQJWKHPUHOXFWDQWWRXVHWKHVHUYLFHVRI0, V 7KHUHVSRQGHQWV
VWDWHG  WKDWE\PDNLQJDJRRGHQYLURQPHQWLQWKHEDQNDQGZLWKWKHSOHDVDQW
EHKDYLRU RI VWDII 0, V  FRXOG LQFUHDVH WKH QXPEHU RI FXVWRPHUV 5HVSRQGHQWV
SURYLGHG DGGLWLRQDO FRPPHQWV WKDW FRXOG EH FRQVLGHUHG E\ WKHLU EDQNV WR LPSURYH
LWV TXDOLW\ LQFOXGLQJ WUDQVSDUHQF\ LQ DQ\ WUDQVDFWLRQV ZLWK WKH FXVWRPHUV SURYLGH
EDQNLQJ VHUYLFHV HYHQ LQ WKH FDVH RI FORVXUHV DQG VWULNHV DQG VROYH WKH FDVK
VKRUWDJHSUREOHPVLQVSHFLILFSHULRGVWREXLOGXSFRQILGHQFHLQWKHFXVWRPHUV

7DEOH$GGLWLRQDO6HUYLFH5HTXLUHPHQWV
W

Z

Z

z

^













Y
,
D
W
E
d^















&21&/86,216$1'5(&200(1'$7,216
7KHDQDO\VLVRIGDWDREWDLQHGIURPWKHVXUYH\VKRZHGVRPHLQWHUHVWLQJDVSHFWVRI
WKH EDQNLQJ LQGXVWU\ 0RVW RI WKH FXVWRPHUV RI WKH 0, V  DUH \RXQJ DJHG PDOH
JUDGXDWHV HPSOR\HG ZLWK KLJK LQFRPH OHYHOV DQG IURP WKH HDVWHUQ UHJLRQ RI WKH
1HSDO 7KLV PD\ UHIOHFW WKH SHRSOH UHVLGLQJ LQ WKH .DWKPDQGX YDOOH\ EXW FHUWDLQO\




%DQNLQJ-RXUQDO9ROXPH ,VVXH 

VRPHWKLQJFRXOGEHGRQHWRLQFUHDVHLQFOXVLRQRIRWKHUJURXSVRISHRSOH6FKHPHV
DWWUDFWLQJ DJHG SHRSOH IHPDOHV OHVV OLWHUDWH DQG ORZ LQFRPH IDPLOLHV FRXOG
HQKDQFHWKHEDQNLQJDFWLYLWLHVHQKDQFHLWVUHDFKWRWKHXQWRXFKHGVHJPHQWRIWKH
VRFLHW\ DV ZHOO DV FRXOG EH D SDUW RI &65 &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\  RI WKH
0, V  7KH VLWXDWLRQ PXVW EH ZRUVH RXWVLGH .DWKPDQGX YDOOH\ DQG KHQFH
FRQVLGHUDWLRQQHHGVWREHJLYHQLQWKLVUHJDUG

5HVHDUFKDOVRSRLQWHGWRZDUGWKHLQFUHDVLQJWUHQGRISHRSOHWRNHHSDODUJHVXPRI
FDVK DW KDQG 7KH SHRSOH PD\ KDYH EHHQ SURYRNHG E\ WKH FDVK VKRUWDJHV LQ WKH
UHFHQW SHULRGV HVSHFLDOO\ ZKHQ LW LV D PXVW QHHGHG  OLNH GXULQJ WKH IHVWLYDOV
&RPSDUHG WR WKH PRQWKO\ LQFRPH FDVK DW KDQG LV DURXQG RQHDQGKDOI WLPHV WKH
VXP DQG FRPSDUHG WR WKH EDQN EDODQFH LW LV DURXQG RQHIRXUWK DOO LQGLFDWLQJ D
ODUJH VXP RI FDVK RXW RI WKH EDQNLQJ V\VWHP $GGLQJ WKH XQGHUHFRQRP\ PRQH\
WKHDPRXQWFRXOGEHJXHVVHGWREHVXUSULVLQJO\KLJK7KHOLTXLGLW\FUXQFKLQWKHODVW
\HDUPD\DOVREHWKHHIIHFWRIWKLVVLWXDWLRQ3ROLF\WREULQJEDFNWKHODUJHSRUWLRQ
RI WKLV PRQH\ LV RXWVLGH WKH VFRSH RI WKLV UHVHDUFK KRZHYHU JRYHUQPHQW FRXOG
HQYLVDJH VRPH SROLF\ WKDWFRXOG EH RI VRPH KHOS $OVR EXLOGLQJ FRQILGHQFH LQWKH
FXVWRPHUV PD\ FXW GRZQ WKH KDELW RI KROGLQJ ODUJH DPRXQW RI FDVK ZLWKRXW
SXUSRVH15%DVZHOODVEDQNVFRXOGSOD\DSRVLWLYHUROHLQWKLVUHJDUG15%VKRXOG
WDNHDVWRFNRIFXUUHQF\VXSSO\DQGSUHSDUHIRUWKHIXWXUHZKLOHEDQNVVKRXOGDOVR
HIIHFWLYHO\PDQDJHLWVOLTXLGLW\

5HJDUGLQJWKHUHDVRQIRUSUHIHUHQFHRIWKHLUEDQNVPRVWFXVWRPHUVDFNQRZOHGJHG
WKHLUVHUYLFHDQGHIILFLHQF\7HFKQRORJ\FRPHVQH[WWRLWPD\EHEHFDXVHPRVWRI
WKH EDQNV DUH SURYLGLQJ VRPHZKDW VLPLODU VHUYLFHV DQG WHFKQRORJLFDO SURGXFWV
WKHUH LV OHVV GLIIHUHQWLDWLRQ LQ WKH SURGXFWV DQG VHUYLFHV  +DYLQJ PDQ\ EUDQFKHV
DQG $70V LV DOVR D FRPSHWLWLYH IHDWXUH WR DWWUDFW D ODUJH QXPEHU RI FXVWRPHUV
2QHILIWK RI WKH FXVWRPHUV DOVR SRLQWHG RXW WRZDUGV WKH UHOLDELOLW\ DQG VWUHQJWK RI
WKHLUEDQNVWREHWKHGHWHUPLQLQJIDFWRUIRUFKRRVLQJDQ\SDUWLFXODUEDQNEXWJLYHQ
WKDWFXVWRPHUVIURPDOOW\SHVRIEDQNVSUHVXPHWKHLUEDQNVWREH5 6LWLVGLIILFXOW
WRDVVLJQWKHIHDWXUHVRIEDQNVWREH5 6)XUWKHUUHVHDUFKPD\EHQHHGHGWRILQG
RXWH[DFWO\ZKDWWKLVWHUPPHDQVWRDFXVWRPHU

:LWKWKHSRSXODULW\RI$70&DUGV RIFRXUVH$70VWRR FXVWRPHUVXVLQJWKLVIDFLOLW\
KDV LQFUHDVHG WUHPHQGRXVO\ FRPSULVLQJ DURXQG WKUHHIRXUWK RI WKH UHVSRQGHQWV LQ
WKLVVXUYH\&KHTXHVKDGEHHQJUDGXDOO\UHSODFHGE\$70&DUGVDQGPD\EHLQ
 \HDUV WKH\ PD\ EH OLPLWHG WR EXVLQHVV WUDQVDFWLRQV RU VRPH VLPLODU FDVHV
+RZHYHUDWSUHVHQW LWV LPSRUWDQFH KDV QRW GHFUHDVHGDQGDURXQG WKUHHIRXUWK RI
WKHUHVSRQGHQWVXVHLWDWOHDVWLQVRPHRFFDVLRQV2QWKHRWKHUKDQGXVHRI&UHGLW
&DUGV KDV QRW EHHQ PXFK H[WHQVLYH PD\ EH GXH WR VHYHUDO UHDVRQV SHFXOLDU WR
1HSDOHVH FRQWH[W XQOLNH LQ GHYHORSHG FRXQWULHV ZKHUH &UHGLW&DUGV DUH KLJKO\
SRSXODU VD\LQJ GLIIHUHQWO\ 'HELW&DUGV DUH UDUH  2QH RI WKH UHDVRQV LV UHODWHG WR
ZHDNODZHQIRUFHPHQWLQ1HSDOOHDGLQJWRKLJKOHYHORIIUDXGVLQFDVH&UHGLW&DUGV
ZHUH SURYLGHG ZLWKRXW SURSHU FRXQWHUPHDVXUHV 7KLV FRPSHOV EDQNV WR OLPLW
LVVXDQFH RI &UHGLW&DUGV RQO\ WR SHRSOH ZLWK KLJK LQFRPH OHYHOV ZHOOSDLG DQG
SHUPDQHQWMREKROGHUVDQGZLWKRWKHUVLPLODUFKDUDFWHULVWLFV0, V FRXOGFRQVLGHU
ORRVHQLQJ VRPH RI WKH FULWHULD WR SRSXODUL]H LWV XVH DV ZHOO DV JRYHUQPHQW FRXOG
SOD\DYLWDOUROHE\HQKDQFLQJODZHQIRUFHPHQW




%DQNLQJ-RXUQDO9ROXPH ,VVXH 


6LPLODUO\ ORDQV DUH DOVR QRW VR PXFK SRSXODU LQ 1HSDO FRPSDUHG WR GHYHORSHG
FRXQWULHV ZKHUH DOPRVW HYHU\ERG\ WDNHV ORDQV WR HQMR\ WKH SUHVHQW <HW WKH
VLWXDWLRQ KDV LPSURYHG FRPSDUHG WR SDVW ZKHQ SHRSOH KHVLWDWHG WDNLQJ ORDQV DQG
RQHZKRWDNHORDQVZHUHFRQVLGHUHGWREHILQDQFLDOO\EDQNUXSW:KLOHWKHWUHQGLV
LQFUHDVLQJ EDQNVVKRXOG IRFXV RQ SROLFLHV WR LQFUHDVH FRQVXPHULVP SURYLGH ORDQV
RQUHDVRQDEOHLQWHUHVWUDWHVUHGXFHKDVVOHVDQGORQJSURFHGXUHVDQGFUHDWHSXEOLF
DZDUHQHVVWRHQKDQFHWKHLUEXVLQHVV7KHFDVHLVVLPLODUZLWKWKH$70&DUGVPRVW
FXVWRPHUVGRQRWIHHOWKH\QHHGLW$ZDUHQHVVFUHDWLRQDQGHGXFDWLRQRIFXVWRPHUV
LV UHTXLUHG LQ WKLV FDVH ZKLFK LV PRUH LPSRUWDQW XQGHU WKH FXUUHQW FLUFXPVWDQFHV
ZKHQ DURXQG KDOI RI WKH FXVWRPHUV ZHUH QRW DZDUH RI VHYHUDO WHUPLQRORJLHV DQG
SURGXFWVDQGVHUYLFHVRIWKHEDQNV

6RPHRIWKHFXVWRPHUVDUHDOVRLQYROYHGLQILQDQFLDOWUDQVDFWLRQVZLWKRWKHUW\SHV
RI ILQDQFLDO LQWHUPHGLDULHV 7KH PDMRU UHDVRQV IRU WKLV DUH OHVV KDVVOHV DQG
IRUPDOLWLHV IRU ORDQ SURFHVVLQJ KLJKHU LQWHUHVW UDWHV RQ GHSRVLWV DJJUHVVLYH
DSSURDFK RI WKHVH LQVWLWXWLRQV WR DWWUDFW FXVWRPHUV DQG VR RQ 7R FRPSHWH ZLWK
WKLVEDQNVVKRXOGORZHUWKHVSUHDGUHGXFHKDVVOHVDQGH[SHGLWHWKHSURFHVVDQG
DGRSW GLIIHUHQW DSSURDFK IRU GHSRVLW PDUNHWLQJ %HVLGHV EDQNV DUH VHHQ WR EH
LJQRULQJORZOHYHOLQFRPHJURXSV WKHPDMRUFXVWRPHUVRIRWKHULQVWLWXWLRQV ZKLFK
ZKHQFRPELQHGFRXOGIRUPDVLJQLILFDQWYROXPHRIEXVLQHVV$VLVWKHFDVHRI60(V
LQWKHSDVWDSSURDFKWRLQYROYHWKLVVHJPHQWRISHRSOHPD\HQKDQFHWKHEXVLQHVV
RI WKH EDQNV LQ D VXVWDLQDEOH PDQQHU 3LRQHHULQJ LQ WKLV UHJDUG PD\ KDYH D
FRPSHWLWLYH DGYDQWDJH DOWKRXJK D IHZ FRPPHUFLDO EDQNV KDG UHFHQWO\ VWDUWHG
VRPHZKDWVLPLODUSURGXFWVWKHWUXHSLFWXUHLV\HWWREHVHHQ 

5HVSRQGHQWV WDNLQJ SDUW LQ WKLV VXUYH\ KDG DOVR GHPDQGHG VHYHUDO DGGLWLRQDO
IDFLOLWLHVDQGXSGDWHGWHFKQRORJLHVWREHDYDLODEOHLQWKHLUEDQNV7KH\DOVRIHOWWKDW
WKHUH LV VRPH VSDFH IRU LPSURYHPHQW LQ WKH TXDOLW\ RI VHUYLFH SURYLGHG E\ WKHLU
EDQNV ,QFUHDVLQJ VHUYLFH HIILFLHQF\ SOHDVDQW EHKDYLRU KLJKHU LQWHUHVW UDWHV RQ
GHSRVLWV PRUH EUDQFKHV DQG $70V DUH RWKHU IHDWXUHV WKH\ ZLVK WR VHH LQ WKHLU
EDQNV%HVLGHVWKHVHFXVWRPHUVQHHGWUDQVSDUHQF\LQWKHSURFHGXUHVZKLOHGHDOLQJ
ZLWKWKHPZKLFKPD\DOVRPHDQPRUHHGXFDWLRQDODZDUHQHVVQHHGWRWKHP7KH\
DOVRZLVKWRVHHWKHLUEDQNVRSHQHGLQFORVXUHVVWULNHVDQGWKHLUEDQNVQRWOLPLWLQJ
FDVKZLWKGUDZDOV

6LQFH WKLV UHVHDUFK LV WKH ILUVW RI WKLV NLQG DQG D SUHOLPLQDU\ RQH LW UHFRPPHQGV
VHYHUDO VXFK UHVHDUFKHV EDVHG RQ D VLQJOH LVVXH UHODWHG WR FRQVXPHU EHKDYLRU IRU
H[DPSOHVWRZDUGVDVLQJOHWHFKQRORJ\DQGSURGXFWVHWFDQGDOVRWKDWLPSURYHVWKH
ZHDNQHVVRIWKLVUHVHDUFK





You might also like