The times are a’changing… again

first_imgUntil recently, the last rising rate period in the U.S. occurred from 2004-2006. Then, the Fed increased rates 17 times, from 1.0 percent to 5.25 percent. That was more than a decade ago, and neither the iPhone nor the Kindle had been released yet.The world is a much different place now than it was in 2006. Much has changed since the last rising rate cycle. In particular, tools available online for consumers to rate shop and move money from one institution to another have multiplied and improved substantially. How have your credit union’s online offerings changed in the last decade? How have your competitor’s online offerings improved? The competition for deposits is already strong, and that competition is amplified in a rising rate environment.Member behavior is likely to differ in a world with nearly unlimited rate information available online, combined with convenient online account set up and money movement capabilities. Depositors have struggled through a prolonged period of historically low interest rates, and stronger demand is likely for rates higher than those in previous rate cycles. continue reading » 14SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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