Updated: Sep 3
If you were to open a bank, financial institution, Wall Street-based institution, or even the Internal Revenue Service division... what would be your criteria to ensure that you were running a profitable business?
To build a profitable financial business, then you would live by four rules - the same four rules that EVERY financial institution (and Government) live by. Rule #1: They want ALL your money. (Somehow, the word 'duh' comes to mind.) Banks: When I worked for a large national bank, one of our initiatives was this, but they 'softened' this to talk about "wallet share". They wanted every customer to have at least 1 or 2 bank cards (credit and/or debit cards) in every customer's wallet. That's just a way to show that they are trying to "build financial relationships". Of course, it goes far further than just having a credit or debit card. They want you to invest in their bank CDs (Certificates of Depreciation), IRAs and Roth IRAs, and other accounts. Financial Institutions: Let's just talk about lending for now. If you own the debt, you capitalize on the cash flow and the labor of those who borrow from yo