Why can the provision of several types of financial services by one firm lead to a lower cost of information production?

When a single firm provides multiple financial services, it can leverage shared resources and data across different services, reducing redundancy in information gathering and analysis. This integrated approach allows for better risk assessment and more efficient allocation of capital, as the firm can use insights from one service to inform others. Furthermore, a consolidated information system minimizes the costs associated with data collection and processing, ultimately leading to lower overall costs of information production.