Written by: Donnie Price, Senior Consultant, Edge Consultancy
Generically speaking, a depository intermediary’s (FI) primary function is to consolidate deposits and channel the funds into lending activities. In performing this function, FIs facilitate the transformation and benefits of maturity, risk, and liquidity between savers, borrowers, and third-parties, which enables profit and efficiency in exchange. In this sense, FIs offer a commodity in the financial services space; that is its solutions have the mark of substantial fungibility in that they are easily substituted with competing solutions of the same type. This truth can expose vulnerable stakeholders to fear and increasing insignificance.
Click the hyperlink below to read the full article.