What’s going to happen with interest rates? When are they going up? These questions have been the subject of endless discussion in financial circles for the past few years. Well, no one has a crystal ball, but one thing is sure: Interest rates can’t get much lower. So, whether it’s tomorrow or a few months from now, at some point, rates are going up.download pdf
Steve Nikitas, Senior Strategy Director for Harland Clarke, talks interest rates, net interest margins (NIMs), and profitability. For nearly a decade, the Federal Reserve has held interest rates at historically low levels. In fact, we have not been in the initial stages of an up-rate environment since 2004. How many product managers, treasurers and chief financial officers in the field today held the same roles back in 2004? Probably very few, if any. Thus, the learning from past experience is distant at best, nonexistent at worse. So what’s a financial institution to do? Download the article to find out.
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...
The key to beating the competition in a fluctuating banking is to create a new core account holder base, while still maintaining strong relationships with traditional account holders.