Observations about Banking Changes - 1
John Reed, chairman of Citicorp:
- "Ultimately, banking is going to be a line or two of application code in some big network. I don't think anybody can argue with that.”
Joe Blank, mortgage industry computer consultant with Arthur Young:
- moving from "brick and mortar" branches to virtual branches will require mortgage bankers to build alliances. Setting up and managing a virtual mortgage banking operation requires solid relationships with related parties
- "Mortgage bankers are accustomed to a traditional vertical operational hierarchy where the boss at the top controls every operation beneath him. But in a virtual world the operational chart is horizontal, not vertical.”
- "You have to make strategic alliances with other independent operators to make this work and in a horizontal hierarchy you will not have direct control over all its parts," he said.