This will allay the ever-present fear of banks hiding some costs up their sleeves, out of sight of customers who only come to know of them much later when they are already in distress. Fourth, banks need to do the right thing. At the heart of any transformation are people.
Second, and more important in practice, the banker often provides firms with information related to business matching and new markets, which helps to improve the recipient firms’ performance even after the initiation of funding. 9 A banker who selects successful entrepreneurs and provides appropriate advice to them at a lower cost than other bankers can earn steady profits from an ongoing relationship with them.