Regulatory changes and economic factors have taken a toll on financial institutions’ income statements. Non-interest income is suffering from the significant revenue impact of Regulation E on overdraft income and the looming effect of the Durbin Amendment on interchange income. According to an October 2010 webinar report from the Independent Community Bankers of America, more than 80 percent of financial institutions expect Regulation E to impact their overdraft revenue by 5 to 20 percent.In addition, interest income has decreased during the past three years due to the recent recession and its lingering effects. Financial institutions have been faced with reduced market demand for loans, which has made it difficult to grow their margins, as well as lower federal funds rates.download pdf
To justify your existence as a marketer, it’s imperative to communicate the positive influence of your marketing spend to senior leadership. Linking the results of your campaigns with bottom line measurements like revenue and profit is imperative. Steve Nikitas details several key performance indicators and analytics to help you do this.
To remain competitive, traditional lenders may need to consider criterion similar to Fintech applications where FICO scores weigh less into decision making such as: income, length of employment and payment history.
Going back to the 1980s, net interest margins (NIMs) typically hover between 3-4 percent. So what, you say? Well, the lesson to be learned here is that even as the...