Betty Cowell, senior advisor at Simon-Kucher & Partners, shares what banks large and small can expect on the retail front in the second half of 2018.
As baby boomers retire, they are likely to avoid the traditional time deposit in favor of customized solutions that address their needs more directly.
Timely information about competitor deposit pricing behavior can save a bank substantial interest expense.
The soon-to-expire unlimited deposit insurance coverage for noninterest-bearing transaction accounts had a marginal impact on balances over $250,000.
In a world of excess deposits, banks must price for quality over quantity, with effective customer segmentation analytics the key to achieving that.
Rather than simply turning away consumers with poor or no credit histories, financial institutions should take the lead in helping those people improve their credit for profitable, long-term relationships.
With its new ‘crowdsourced’ credit card, Barclays Bank is hoping to use social media to create a kind of ‘virtual’ credit union, says bank executive Paul Wilmore.
To restart growth in consumer credit, retail banks need to look at nontraditional products such as the unsecured line of credit and the dynamic liquidity line; the key is to organize offers around essential customer needs.