The Top 10 Trends For Banking In 2023: The Gravity Of Rising Interest Rates Returns

The last time banks experienced steeply rising interest rates off an almost-zero base was back in 2005—before the launch of the iPhone. The past 17 years, historically speaking, have been profoundly unusual for banking. Sustained near-zero interest rates shattered the fundamental equation of the industry—that deposits drive lending power.

In response, most banks shifted their focus from a holistic view of the customer’s financial needs, (through an integrated deposit and lending model) to isolated products that continued to generate revenue in a low-interest environment. This severed the connection between related offerings at banks and strengthened product silos.