Banks focused on the wallet metric need to start with attracting new customers in the first place—and keeping them.
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.
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.