Are you prepared for 2019?

This BAI infographic highlights some of the industry trends that may impact your bank in 2019.  In this blog series, we’ll address some of the trends and how you can be sure that your bank is ready to survive and thrive.

 

 

ARE YOU PREPARED FOR RATE COMPETITION?

With a few taps on the screen of her mobile device, your customer can pay for that gigantic, over-priced, latte, send birthday money to the grandchildren or schedule payment of a business supplies invoice.  Convenient!  Fast!  Secure!  Fantastic!

With a few more swipes and taps, she can also transfer her entire deposit relationship from your bank.  Convenient!  Fast!  Secure!  But, not so fantastic!

Consumers are now being enticed by high-yield savings accounts and premium rates on certificates, after having passively accepted next to nothing in exchange for their deposit balances.  Social media, smart phone apps, online search results and even targeted direct mail – your customers are being bombarded with promises of better rates.  This assault on your deposit base is real and it’s being enabled by real-time developments in the data science and fintech space.

Rate competition is likely to be one of the biggest threats to your organization in the new year.  Have you modeled the potential impact?  Do you have the right deposit products and are they priced competitively?  Do you have a plan and a back-up plan?  In other words, “Are you prepared?”

 

Contact us to review your existing plan or help you quickly assess your risks and develop a comprehensive plan that aligns with your strategic objectives.

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