| | |
| Summary |
| Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
|
Bank Deposits Get Interesting
Retail-bank customers for deposit products such as checking accounts and certificates of deposit are much less price sensitive than bank executives typically believe. Most customers don't even remember the last price change to their checking accounts. Fewer than 6 percent of CD customers switch banks. As a result, banks could boost these products' bottom-line earnings by as much as 5 to 7 percent.
The take-away: The relative insensitivity of customers to the pricing of deposit products gives banks the flexibility to change prices—without sparking widespread customer defections.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
|
|
|
