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.
When deciding whether to impose service fees, banks need to consider consumer preferences as well as the competitive landscape.
Consumers fled most types of CDs in the wake of the financial crisis and are unlikely to favor them again until the economy returns to a more ‘normal’ state.
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.