A bank as a manufacturer

Compare banks with manufacturers and the contrast does not flatter the former. Banks’ inefficiencies and Basel II will lead to the ‘Dell-isation’ of the banking business unless banks clean up their act. By Ron Dembo

If you think of what banks do as manufacturing, and compare them with, say, car and computer manufacturers, it quickly becomes clear that banks are actually poor manufacturers. The question is, why and how can they improve? Basel II is certainly going to force banks to review how they create, manage and sell products. The banks that seize the opportunity of Basel II to streamline their processes, and create efficient production environments, are likely to be winners.

How do we know that banks