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?
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.
Promotional rates on deposits, or ‘specials,’ usually fail to attract new balances or shift money to longer-term accounts in the current rate environment.
While term deposits haven’t grown much in the past 10 years, they are looking forward to the day when long-term commitment is once again meaningful and rewarding.
Offering a greater relative increase on your deposit rates than the competition can attract more deposits at a lower cost of funds than if you offer the absolute highest rate.
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.