Gone are the days when banks could count on depositors seeking shelter from the recession. With rising rates, how can banks rise to the occasion?
Institutions that are not practicing regional pricing are very likely mispricing their deposits, even in a low-rate environment.
A consistent measurement methodology helps bankers manage the profitability of their CD funding.
While banks have more deposits than they can profitably lend out, many continue to focus on the relationships behind the unneeded cash.
While bankers may be tempted to downplay CD funding in today’s low-rate environment, the need to fund term loans profitably requires renewed attention to this essential product.
Financial institutions can recover their lost debit card fees by refining their deposit pricing to reduce interest expense.
Consumers object to fees for emotional rather than rational reasons, opening the door for banks to utilize an ‘implicit usage’ model to price deposit accounts.
As the urgency grows to drive revenue growth, banks will get more lift from high-value opportunities to expand relationships than from raising fees or cutting costs.