The Zero Transaction Cost Entrepreneur: Powerful Techniques to Reduce Friction and Scale Your Business

CHAPTER 17

TxCs and Disaggregation in the World of Banking

In the world of consumers, we identified eight primary categories of TxCs. In the world of business, the TxCs are extremely situation- and sector-specific and not as easily categorized. In this chapter we will examine TxCs in the banking sector.

The concept of an aggregated (vertically integrated) bank has been a normal part of our lives for the past 100 years or so. We think nothing of getting savings, payments, mortgages, credit cards, or foreign exchange from the same place as companies raise loans, finance their assets, and hold their deposits. Bundling and coordination between the different products and end-to-end customer relationship management have been among the key differentiating ...