Question
Banks use databases to identify profitable and unprofitable customers. Bankers say they lose money on customers who typically keep less than $1,000 in their checking
Banks use databases to identify profitable and unprofitable customers. Bankers say they lose money on customers who typically keep less than $1,000 in their checking and savings accounts and frequently call or visit the bank. Profitable customers keep several thousand dollars in their accounts and seldom visit a tell or call the bank. To turn unprofitable customers into profitable ones, banks have assessed fees on many of their services, including using a bank teller, although many of the fees are waived for customers who maintain high account balances. Bankers justify the fees by saying they're in business to earn a profit.
Discuss whether banks are justified in treating profitable and unprofitable customers differently. Defend your answer.
approximately 200 words or more). Use correct spelling, punctuation, and grammar.
- Describe the relationship of social responsibility, ethics, and law in business.
- Describe the importance and effects of ethical practices in business and be able to analyze business situations to identify ethical dilemmas and ethical lapses.
- Describe basic financial statements and show how they reflect the activity and financial condition of the business.
- Explain integrity, ethics, and social responsibility as they relate to leadership and management.
- Explain the banking and financial systems, including the securities markets, business financing, and basic concepts of accounting.
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