Amount Quote by Sylvia Mathews Burwell
“Banks can't recoup the costs of serving customers who save in small amounts and transact frequently.”
About This Quote
Source Speech: Remarks at the 2015 Financial Services Forum, Washington D.C.
Small‑value customers cost more to serve than they generate revenue, challenging profitability for banks.
In simple terms: Low‑balance, high‑frequency users are unprofitable.
Key Takeaway
Rethink pricing or service models for low‑balance clients.
Themes
banking
profitability
customer segmentation
Mood
concerned
analytical
Type
policy
business.
When to use this quote
- retail banking
- mobile payment apps
- micro‑savings platforms
- community credit unions
Key Concepts
cost‑to‑serve
economies of scale
pricing strategy
Questions to Reflect On
- How can banks balance inclusion with cost?
- What alternative revenue streams could serve low‑balance users?
A Different Perspective
Higher fees may deter financial inclusion.
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