The combination of an apparently high price elasticity and a rapid decline in relative computer prices – 20 percent per year over the past decade – likely led to the boom in high-tech investment. A third characteristic of some high-tech investment is the magnitude of external or spillover effects that it generates.
The entire institution of banking is built on consumer trust. By imposing charges not commensurate with the cost of services provided, we risk losing this fundamental trust that underlies a banking relationship. No doubt deployment of IT offers ample rewards. But these rewards can be claimed only by organizations which successfully address the alignment challenge.