The increasingly competitive inroads of mutual funds, credit cards, investment, and mortgage brokers (among others) threaten the profitable relationships upon which banks have depended for their growth. This threat has led the far-sighted to "reinvent" their franchises, driven by the realization that to do nothing is to face the slow erosion of franchise value, in turn the source of renewable profit.

Yet little attention has been given to measuring the magnitude and effectiveness of a bank reinvention strategy, at least in a manner that bank stock analysts and investors can easily understand. Since pharmaceutical manufacturers disclose and discuss their R&D, why shouldn't the repositioning expenditures of banks receive similar treatment?

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