What you need to know in banking and finance for 2017
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Scott McCarthy, the branch manager at the new Digital Federal Credit Union on Tobias Boland Way in Worcester, found success in the urban market by helping customers find their way out of bad financing deals with other institutions.
The increase in interest rates is exactly what many in the financial field have been waiting for, and something we have been talking about seemingly for years. Low rates have meant low margins, which have meant struggling times for many lenders.
With interest rates set to rise on the back of positive economic indicators, 2017 will be the year that lenders get some breathing room. What lenders do with that breathing room will help to define 2017.
Competition for customers
Rising rates mean breathing room for lenders, but it also means opportunity for those willing to play with lower margins.
A rise in rates might not directly be felt by the consumer as some businesses would take this as an opportunity to build their share of the borrowers in a tight-rope walk along balancing more customers with a thinner margin.
Credit unions vs. banks, continued
The land grab will not just be between banks, as credit unions will continue to assert themselves within the market.
This has been an ongoing trend, but credit unions in Central Massachusetts will continue to dip into the territory of banks, whether that is auto loans or savings accounts. While some banks cry foul of this intrusion, it is the reality of doing business in Central Massachusetts.
Digital expansion
For some time it has not been enough to just have a website, you (at least) need an app and social media outreach. But the interconnected nature of our world is only getting deeper, and this will continue to hit the banking industry.
This means not only new platforms but new services through those platforms, such as Citizens Bank that recently announced an expansion to its wealth management platform that taps into investments as well as loans, savings and checking.
Read WBJ's Economic Forecast for other Central Massachusetts industries
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