Following the bailout of Silicon Valley Bank and Signature Bank, deposits have become front and center once again. Instead of rehashing what went wrong or speculating on the next shoe to drop, banks should use this opportunity to look ahead and prepare now for what’s likely to happen in the next two to three years.
It’s no secret that 15+ years of near-zero rates have distorted banking. With little value in deposits, banks were driven to focus on isolated products that generated fees or gains instead of focusing on the customers’ holistic financial needs. Fintechs and digital upstarts emerged to fill the gaps but lacked a true balance sheet.
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