I recently spoke at a New York Bankers Association senior management conference regarding the quest for economies of scale to improve earnings through positive operating leverage. I was the leadoff hitter for a tandem that included a JPMorgan Chase banker. I brought my 21 year-old daughter with me, and thought it might be a good idea for her to use our family camera to video and edit my remarks. See below.
Banks and thrifts have not reduced efficiency or expense ratios as they have grown... i.e. they have not achieved economies of scale.
I cited three possibilities why this is so:
1. Culture/Bureaucratic Attitude;
2. Fragmented Responsibilities; and
3. Technology Utilization and We Have Always Done It That Way
The session was based on a white paper I recently wrote for the Financial Managers' Society. See link to the white paper below.
This is my first V-blog and I will get better at it, especially if my daughter provides me guidance.
Lesson learned: We have to get better at camera positioning!
Link to FMS White Paper on economies of scale and positive operating leverage: