With ongoing changes and innovations in the financial services industry, we strive to stay on the leading edge of news and trends to keep our clients informed on new opportunities and potential threats in their business.
We hope you enjoy December’s edition of Financial Services Industry News to learn about the latest news and developments across the retail banking and financial services industries.
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This month’s edition includes the following topics:
- Interest Rate Overnight Averages
- General Industry: Report: Digital Channels Delight, While Branches Struggle for Relevance
Why are some consumers loyal while others are more likely to switch? What drives consumer satisfaction in banking today? According to a report from Bain & Company, the answers to these questions are largely dependent on the delivery channels a consumer chooses to use.
- Technology & Innovation: Google Could Be Your Next Mortgage Broker
Google recently launched “Google Compare” for mortgages, allowing potential home buyers to find and compare home loans. When looking to buy a home, consumers find themselves shopping around to find the best mortgage terms.
- Cards & Payments: In-Store Mobile Payments Increase Four-Fold Across the U.S.
The use of in-store mobile payments increased nearly four-fold across the United States from 5% in 2014 to 18% in 2015, according to Deloitte's Global Mobile Consumer survey. Approximately 20% of consumers used their phones to make a payment at the point of sale.
- Consumer Lending: Quicken Loans Launches Revolutionary End-to-End Online Product “Rocket Mortgage”
Progress toward moving the entire mortgage approval process online made an apparent leap forward with the recent introduction of Quicken Loans’ Rocket Mortgage. The company says its new product will allow borrowers to be fully approved for a purchase or refinance a loan in as little as eight minutes, simply by plugging in some personal details on their computers, tablets, or smartphones.
- Small Business: J.P. Morgan Chase Enters Online Loan Boom
J.P. Morgan Chase is joining forces with OnDeck Capital Inc. to offer a new type of small-dollar loan product to the bank’s small business customers. The new product will be available online to some Chase clients next year, says Jennifer Pipeszak, CEO of Chase Business Banking.
- Wealth Management: Women “Very Concerned” About Retirement Saving
The Insured Retirement Institute (IRI) recently released a new study on women’s retirement planning perspectives that found eight in ten women have concerns about saving enough for retirement, with the majority, 54%, saying they are “very concerned.” The report also found that women, compared to their male counterparts, have more concerns about financial issues and their ability to retire.
- Insurance: Demographics Are Key: Who’s Most Likely to Be Receptive to the FIA Message
Recent research from the Insured Retirement Institute’s (IRI) “2015 Fixed Indexed Annuity Distribution Trends” reveals that consumer interest is high across the board for fixed indexed annuities (FIAs). According to the IRI survey results, approximately 70% of consumers from all demographic groups are at least somewhat receptive to purchasing FIA products.
- Regulation & Security: Federal Reserve Raises Interest Rates for First Time in Nearly a Decade
The Federal Reserve raised its key interest rate on 12/16 from a range of 0% to 0.25% to a range of 0.25% to 0.5%. The rate hike is a small one, but it will affect millions of Americans, including investors, home buyers, and savers. Savers will eventually see a little more interest on their deposits at the bank, and mortgage rates will gradually rise.
- Economy: More Homeowners Rise From Underwater
In Q3 2015, almost 1 million fewer homeowners were underwater versus the prior three months. However, some of the areas hardest hit by the housing boom gone bust continue to have a tough go of it. This summer, Zillow says, 13.4% of U.S. homeowners were underwater, a decrease from 16.9% a year earlier.