Winding down specials will reduce interest rate risk, while a shorter liability profile can protect net margin.
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.
The Fed generally raises interest rates within 12 months after deposit rates cease declining and begin turning up; such a turning point appears to be in sight.
Customer data provides a treasure trove of information that banks can utilize to design new products.
Commercial lenders need to get back to the original essence of “know your customer” as the fundamental principle of banking.
Checking account redesign can boost profitability if the account designers carefully match features with their targeted customer segments.
While payday or cash-advance credit is a regulatory no-no, financial institutions have other valid options for making small dollar loans.