Deposits: The top profitability lever for retail banks’ CEOs

15 hours ago · Many banks have made it a priority to maintain stable balances in term deposits over the past year, even as many of these deposits have come up for renewal. A European retail bank developed a hidden affluent model to predict which of its customers had funds at other …

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Jan 15, 2025 · A rebound in dealmaking drove Wells Fargo's profit 47.3% higher, to $5.1 billion, as its investment-banking fees jumped 59% to $725 million in the quarter compared with a …

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FAQs about Deposits: The top profitability lever for retail banks’ CEOs Coupon?

Is primary banking the most profitable approach to growth?

This is not a new idea in banking, but given the current market conditions, it is emerging as the most profitable approach to growth. Primary customers are more likely to generate high-ROE fee income, lower cost of funds with primary operating accounts, and maintain longer-term relationships with a bank. ...

Are retail banks coming out of a period of strength?

Retail banks around the globe are coming out of a period of strength. When governments stimulated economic growth during the COVID-19 years, banks benefited from increased consumer savings and reduced levels of credit risk. ...

How did the retail banking market perform in 2023?

In 2023, the global retail banking market also surpassed the $3 trillion revenue mark on the back of sustained growth of about 8 percent annually in recent years (Exhibit 2). The positive performance has been geographically broad. ...

Does digital retail banking make a difference?

While branches continue to play a key role, digital retail banking channels do account for a growing share of product sales, especially with regard to cross-selling of simple products like credit cards and personal loans. ...

Why is distribution important in retail banking?

Distribution is the fundamental interface between retail banks and their customers across acquisition, advisory, and servicing. It plays a critical role in building customer primacy and in modulating cost to serve based on client value and channel preferences. ...

Why has retail banking slowed?

retail banking revenue growth slowed from 11 percent to 3 percent, primarily due to weaker economic expansion. The outlook for global retail banking is more muted than its recent performance would suggest. External forces are combining to pressure the sector in the key economic metrics of asset growth, margins, and operational and risk costs. ...