How to Improve a Bank's Profitability??

Michael Porter's generic corporate strategies may improve the bank's profitability. That is, by cost leadership, differentiation, and focusing.

1. In cost leadership, the bank may move the back office operations to developing countries, such as India or China, there is lower operations cost and cause larger profit.

2. In differentiation, the bank may produce new financial products to meet the new market segment. This may induce new income and enlarge the profit.

3. In focusing, the bank may focus on a specific business with good customer service. The reputation of such focusing may lead to customer loyality and maintain a good profit.