'Supernormal' returns traditional banks enjoy to erode as challengers emerge: JPMorgan

Singapore

THE industry stronghold held by banks, thanks to their access to cheap deposits, had for years allowed them to generate "super-normal" returns.

Merchant transactions charges, high fees, and commissions for remittances are just some examples, a report from JPMorgan showed. The biggest benefit can come from the free float - the time gap in which a bank receives and sends money - while charging for such payments services.