Lower Profit making

 

Consider a bank that offers both online and branch access for customers. Based on the estimated costs of service through the two channels, the bank has decided it should motivate customers to use online services in place of branch services. After several months, it has persuaded over 50 percent of its customers to use the online service for most of their business. However, with the latest profit report, it appears that the bank is actually making lower profits than before. Why might that be?

 

 

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