Chapter

The Cost of Being a Depositor for Banks
Banks often view depositors as a cost center as they have to spend money on acquiring them, causing challenger banks to become a potential threat for traditional banks. This differs from loan providers who can build long-term relationships with customers, as loans are considered a commodity.
Clips
The fundamental issue with traditional banking is that they view depositors as cost centers while loans are like commodities.
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Summary
The fundamental issue with traditional banking is that they view depositors as cost centers while loans are like commodities. It's much harder for loan providers to build a long-term relationship than it is for challenger banks that focus on depositors.