Do you see how deposits are the be-all and end-all for banks, running the show like clockwork, pumping cash into their veins?
Well, times have changed. With all those FinTech novelties and digital dough, deposits are starting to look like yesterday’s news.
Many banks are scrambling for deposits since their cash is tied up in illiquid securities or they made bets on long-term loans on their balance sheet.
Their “loyal” customers are moving deposits into Treasuries that are finally yielding something!
Imagine this. What if banks did not see themselves as merely places that store deposits and make loans. Open banking’s gaining speed, turning customer data into new treasure troves.
Banks that know how to use this data? They’re laughing all the way to the… well… bank. They get to craft financial goodies that fit like a glove, making customers stick around longer.
So maybe it’s high time we rethink this whole deposit gathering gig. If you feel like you are in a vicious cycle of deposit gathering to fund loans which may be underwater from today’s deposit costs, it is time to rethink the business of banking.
What’s your take? Chime in.
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