retaildepanalyzer

Mass affluent customers are desirable. They have steady incomes and larger deposits, and they can be cross-sold into other profitable services such as lending and wealth management. But in today’s high rate environment, these more sophisticated clients are also demanding significantly more on rate than their mass market counterparts, so holding on to them is more costly than in the past.

With rates expected to stay higher for longer, balance rotation from non-interest-bearing (NIB) to interest-bearing products is keeping pressure on bank interest expense and net interest margin.