The flow of funds into banks and credit unions over the past several months is occurring at an unprecedented rate. Causes for this dramatic inflow include the â€˜flight to qualityâ€™ occurring due to the stock market collapse, the temporary increase of FDIC insurance to $250,000, and the recent shift in consumer behavior away from spending and toward a renewed sense of saving. What is unique about this growth in deposits is that it is occurring when interest rates are at historic lows.download pdf
Rachel Stephens explains why the timing couldn’t be better to build core deposits, ensuring a stable and sufficient source of funds for lending activity.
Mobile banking is no longer just for Millennials and Gen Z. In fact, recent findings indicate that well over 50 percent of consumers under age 54 consider mobile deposit to be a “must have” or “nice to have” feature.
Smaller banks have always been known for better rates and superior customer service, but may have previously lacked technological capabilities to keep up with the tech-conscious consumer; now small banks can offer technology and low fees.