Financial service elimination

Financial service elimination


‘I would like to find out why you are interested in finding out why banks are giving up businesses. You and I are at two poles of a continuum. I am a market developer. I am not a market closer-downer. And I think it is difficult to understand why you find the process of closing down services an interesting thing to study . . . It would drive me mad to always research something which is a negative topic (laughs) . . .’

As the above comment from the manager of a small bank would suggest, some financial institutions have been tardy in developing product elimination strategies. There is little doubt, though, that in today’s volatile and harshly competitive financial services sector, many financial institutions in Britain, including the leading ones, are rethinking their plans for growth and expansion. In recent years the sector has experienced major mergers, acquisitions, cutbacks in employee numbers and rationalisation of branch networks. The product range strategy has not been immune from this cost reduction orientation. Specifically the last two decades were characterised by financial institutions furiously engaging in uncontrolled new service development (NSD), which has resulted in over- populated financial service portfolios. Recently, however, in addition to NSD, it seems that financial institutions are slowly beginning to consider service elimination as a response to the turbulent environment. Indeed, it could be argued that the management and implementation of the service elimination decision-making process has become a critical strategic issue for British financial institutions. Despite this, service elimination decision making is notable by its absence in the services marketing literature. The very limited empirical research that has been conducted in this area focuses mainly on the strategies that can be used to implement the elimination of a financial service product, while scant attention has been paid to the earlier stages of the service elimination decision-making process. In particular, little is known about the objectives that financial institutions pursue when deciding to engage in the service elimination process nor about the problem situations that prompt them to consider a service as a candidate for elimination.


Representative APR 391%. Average APR for this type of loans is 391%. Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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