As Lewis Carroll pointed out in Alice in Wonderland, sometimes you have to run as fast as you can just to stay in the same place.

In this time of unparalleled technological change and constantly growing competition from non-traditional sources of financial services, banks have fallen well behind their speedier rivals. Why does Starbucks command a price-earnings ratio of 52, while the average retail bank is 13? Regrettably, bankers- preparing for the next wave of nonbank competition- are basing decisions on an old operating paradigm.

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