Welcome to the Summer 2019 issue of the Novantas Review.
There have been more than the usual uncertainties during the first half of 2019. The Fed hit the brakes on interest-rate hikes and an increasing number of experts now think a rate cut may be in the offing. A blockbuster merger has bank CEOs around the country assessing their next move. Economic indicators remain strong, but the inverted yield curve could portend tougher times later this year.
No matter what happens, “Know Your Customer” should be the industry’s mantra. Although bankers typically associate the phrase with anti-money laundering regulations, Novantas believes this knowledge must also extend to banks getting a better understanding of their customers’ needs and the value that these customers bring to the institution.
The better banks are deploying new analytics to identify the bank’s sources of high value, sticky deposits and to determine what drives customers to move their money. The best banks are developing tools to scour their competitors’ customers so that they can determine the best prospects to capture.
Banks have myriad powerful tools at their disposal, but many have been slow to use them effectively. Often, the use cases are not sufficiently defined and structured.
This issue of the Novantas Review starts out with a look at the levers that banks can pull to help boost profitability. A precision approach to cost-cutting is key to maintaining the most valuable part of the bank: the retail and commercial deposit franchise. It’s not an easy task, especially as it comes against the backdrop of rising deposit costs and increased competition.
Much of this issue includes new research from Novantas and the Consumer Bankers Association that explores customer motivations and the value associated with deposit products. The research dug into the different characteristics of savings behavior and highlights patterns that savers adopt.
Speaking of savings, the latest subject of “Sitting Down with Novantas” is Dr. Daniel Crosby, a psychologist and behavioral-finance expert who studies how people interact with their money.
We also provide some new insights for commercial bankers based on a survey we conducted with treasurers of companies in a variety of industries. Hint: they think banks can do a better job.
As always, we welcome your feedback on the Novantas Review. Please feel free to send questions or comments to Robin Sidel at firstname.lastname@example.org.
With all eyes on the Fed, banks can take steps now to maintain profitability without sacrificing much-needed digital investment.
The Fed may have stopped raising rates, but banks haven’t. Competition is forcing banks to pay up for deposits.
Banks often waste time and money pitching their products to consumers who aren’t even shopping for a new banking relationship. New tools can help banks target prospects more effectively.
The flattening yield curve is expected to continue pressuring industry profitability in coming months, even though the Fed has hit the brakes on interest-rate hikes.
Daniel Crosby is a psychologist and behavioral finance expert who applies his study of market psychology to many aspects of financial services. He recently sat down with the Novantas Review to talk about how behavior influences financial decisions.
What do companies want from their banks? Fewer accounts and more fee transparency, according to interviews with corporate treasurers.
Executives from Novantas swept into the annual meeting of the Consumer Bankers Association with a load of new research about deposits and savings behavior.
It’s time for marketing to help drive the agenda at the nation’s banks.
Smaller banks often miss the mark when it comes to acquiring new checking-account customers. In part, that’s because they don’t know what is important to these consumers.
Canadian shoppers are gravitating to digital channels at a rapid pace.
You know all about credit scores, but what do you know about deposit scores? New tools can help banks to better assess the cost and value of deposit balances.
It’s not only a matter of whether your customers save, but how they do it. New research from Novantas and the CBA examines savings behavior.