So if you're looking for someone who does excellent comedy in Japanese, I'd recommend this guy.
As to the actual content: the non-obvious rationale is "Consumer banking has to make money somehow; options are limited in a low interest rate environment."
As to the actual content: the non-obvious rationale is "Consumer banking has to make money somehow; options are limited in a low interest rate environment."
"How does consumer banking make money?"
Net interest on deposits
Net interest on consumer loans
Revenue from selling non-loan financial products (e.g. asset management, insurance)
Fees the consumer sees
Payments revenue (interchange on CCs/debit cards + transfer fees)
Net interest on deposits
Net interest on consumer loans
Revenue from selling non-loan financial products (e.g. asset management, insurance)
Fees the consumer sees
Payments revenue (interchange on CCs/debit cards + transfer fees)
The math is *extremely* difficult for consumer banking in Japan for typical consumers who do not yet have a lot of assets, and even with paying ATM / transfer / etc fees which are a lot higher than in peer countries, they likely are being subsidized by bank ('s other customers).
A rough sketch of the math: running a bank involves relatively low marginal costs for the marginal account but relatively large fixed costs. To pull its weight on those fixed costs, a consumer banking relationship has to generate about $100 to $200 a year in margin.
A typical middle class consumer in the US might have an average over time of $3000 in their checking account, which earns ~$45 of net interest income annually. They charge $500 a month on their debit card; there's another $60 to 120.
The same customer in Japan generates ~$1 in net interest income and charges $100 per month on their debit card, for a total margin contribution of about $25 per year.
