The Dodd-Frank Wall Street Reform Act of 2010 will exceed 17,000 pages.
The Federal Reserve will move short-term interest rates up slowly by an additional 50 basis points in the second half of 2016.
Big banks will look to push non-operating deposits out the door and limit the size of deposits of their institutional clients.
Regional banks will move upstream and compete aggressively for larger clients and greater market share through acquisitions and a broader focus.
Deposit rates by banks will lag, at least into the second half of 2016.
Electronic banking will become center stage with greater options and more third-party providers, leading to lower costs.
More questions will be asked by your bank(s) and the flow of information will become more transparent.
More deposit alternatives will be offered, such as the Bank Deposit Investment Account (BDIA).
Cash will be monitored very closely, with great accountability required in the reporting of it.
Banks will be more selective in who they do business with and will create more personal banking relationships with their clients.
The year 2015 was a challenging one for the banks to work in a new world of regulations while working to serve their clients. For entities, low-interest rates made it a good time to borrow money but tough to make any on their deposits.
The year 2016 will be sure to bring even more regulations, which could be challenging, but the opportunity to capture higher rates on deposits could increase bottom-line income. January is an ideal time to start reviewing your cash flow and preparing a roadmap for the year.
At three+one we help public and higher education entities prepare for the future, taking on challenges and turning them into new sources of revenue and new opportunities to save money.