Though far from perfect, the credit evaluation tool marks an important step forward for lenders and consumers.
To meet regulatory objectives of offering overdraft protection only to consumers who need it while still growing revenues, banks should consider a new category of no-overdraft fee accounts.
To avoid getting caught by unpleasant surprises, pricing executives need to track deposit trends across several dimensions.
Managers trying to implement universal banker programs need to understand that success depends on cultural change as well as new software.
Once deposit rates start rising this year, the banking industry will incur relatively high interest expense due to the inelasticity of consumer deposits in a rising-rate environment.
Although deposit rates traditionally lag in a rising rate cycle, the next cycle may be different, putting pressure on banks to improve their deposit pricing skills now.
After six years of extreme insensitivity to falling interest rates, deposits are becoming more price sensitive, suggesting that banks will soon need to pay higher rates.
To replicate the fast growth of nonbank providers, banks need to market payment services as features that can be added to any checking account rather than as part of existing accounts.