Originally Posted by
Blackcloud
Although IMO a home loan is more profitable for a bank, it is not a very straight
forward calculation. Not all the interest you pay on the home loan is 'profit' to the bank, there are cost of funds, risk, overhead etc that a bank has the profit margin can be quite small, under 1% depending on the rate and the current market rate....of course offset by the high home loan balance. CC users who pay off the monthly balance do not earn the ban much, the banks receives a small bit of revenue from the issuer for each transaction, of which the bank must cover all their costs including any rewards scheme they have.
But as Etham said different products and product owners so less likely to take a whole of customer point of view.
sure, thanks both, but I take it I would look at the bank as a whole and not to consider that they are separate companies or divisions. I trust the brand and that is what it is here. Just like Air NZ, they have many subsidiaries and different companies, but I deal with the company and leave everything to them. It is interesting that the bank like to have all businesses going to them but then why they don't treat themselves as one when questions come up? They all ring up sincerely offering insurance of all sorts from travel, work protection to home and content and beyond, kiwisaver, shares, investment, credit cards etc. etc....
What I appreciate is that I want a seamless experience and all this 'shifting the death chair' approach is not helping. They are one big cost centre at the end when the consolidated annual report is out, and this is what shareholders are looking for at the end of the day. I appreciate companies that is customer driven and not operating like a bloody accountant.