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The Bottom Line

We’ve been preaching for some time the importance of closely tracking vendor contract amendments, subtle moves in transaction volumes, and other sometimes overlooked changes that can translate to meaningful shifts in a financial institution’s (FI) cost base and affect vendor relationships. We now have a real-time cautionary tale to help drive this point home.

Banking is banking, right? Financial institutions (FIs) take in deposits, lend out money, charge fees for a variety of related services, and hopefully have a bit more in the till at day’s end than they started with.  So surely FIs in a neighboring country whose citizens speak the same language (mostly) and transact their business in something called dollars, would be almost identical to ours in the US, right? Nope.