Wealth Management

Move over, crypto and Stablecoin. The next big thing in deposits is tokenized deposits. Not only are they more secure, but they can be deposited and withdrawn from anywhere to anywhere, a feature that geographically limited banks can turn to their advantage. As he’s done in the past, the venerable Gene Ludwig figured this out at the onset of the trend and has built a vehicle for non-universal banks to be able to offer digitized…

This year has been more tumultuous than many before it, with unprecedented economic gyrations. Short rates have remained stable, while long-term debt has reflected the unique economic uncertainties of our time. While this yielded lots of agonizing and stomach acid, it also helped steepen the curve somewhat, and contributed to some margin relief among many banks. Industry leaders shared their main concerns last year as NIM, core funding pressures (both rates and magnitude), credit quality…

Part One of this article highlighted the opportunities embedded in the Wealth business to generate coveted fee income and increase franchise value for your bank. The grim reality, though, is that many banks with a Wealth vertical found the business lacking in terms of overall contribution to the entire enterprise, either in profitability or in deposits. This part will tackle some of the underlying causes for the disappointments many CEOs have expressed with the business,…