Wonkonomy (wonky + economy)
Wonky. It’s a fun word to say. And even though it may not be a word you use in your every day, it’s one of those words that can really sum up a scenario. According to Dictionary.com, wonky means “not exactly straight or balanced,” or “faulty, unreliable,” and even “crazy, mad.” One could argue (although few would probably disagree) that the economy has earned this quirky title recently. Between inflation, a possible recession, an in-your-face liquidity crisis, skyrocketing interest rates, and more – wonky fits well, no matter which definition you use.
Some of the biggest challenges banks and credit unions have faced in our current economy are getting more deposits and diversifying and increasing their loan portfolios. The lack of liquidity assets makes it difficult for financial institutions to be available to lend money to individuals and businesses. While we don’t know how long we’ll be on this economic teeter-totter (Months? Years?), the right strategy for your institution can increase your deposits and loan volume to help get you through and to the other side (should you prepare a long-term strategy or go for a short-term “band-aid” play?). Here, we’ll cover some strategic opportunities you can use to help ride out this rollercoaster.
Keep Your Consumers Best Interest (Rates) in Mind
If you are reading this, there is a good chance you are not a fintech offering increasingly competitive interest rates. While it can be a challenge to get a consumer to switch their financial institution – especially if they have been a long-time consumer – the increased interest rates a lot of fintechs are offering are making people think again.
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