After the brokerage commission wars, interest rates may be the next finance battleground

  • 📰 CNBC
  • ⏱ Reading Time:
  • 27 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 72%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Now that major brokerage firms are at zero, analysts are predicting fintech companies will put pressure on incumbents to offer a higher interest rate.

This year, SoFi, Betterment, Wealthfront, Robinhood, and CreditKarma have all made plays into some sort of high-yield account with at least a 2% annual percentage yield. The national average for example on savings accounts.com. Wealthfront's cash account has attracted more than $7.5 billion in deposits since launching in February. Co-founder Dan Carroll told CNBC it's "going to be really difficult for incumbent firms to pivot to compete on interest rates overnight.

PwC Financial Services Advisory Leader Julien Courbe said part of the reason fintech companies are able to offer higher rates for their deposit products is because their customer acquisition costs are lower. Their eye-popping APY can be especially attractive to customers who are shopping based on rates alone.

Regional banks, meanwhile, are scrambling to compete with the big four and trying "more aggressive" tactics, he said. "In order to do this, they need to create more attractive deposits."

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Howard Marks offers advice on how to navigate negative interest rates - Business InsiderHoward Marks says investors should look for durability and dependability to help navigate through an unprecedented negative interest rate environment.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »