Alisha Crafton

The risk of margin compression is putting community financial institutions under pressure like never before. With interest expenses outpacing operational costs and consumers expecting lower loan rates, it’s clear the status quo is no longer sustainable. It’s easy to get lost in the noise of the current economic environment. But the institutions that survive this storm will be the ones that master the success formula: increasing loan yields, optimizing deposit costs, and retaining existing consumers.

Key Takeaways:

1.         Capture new relationships in turbulent times: increase loan yields, reduce delinquency, and driving digital engagement that strengthens your institution.

2.         Optimize marginal cost of existing deposit dollars: lower your Cost of Funds and maintain liquidity, ensuring your institution remains profitable even under pressure.

3.         Retain existing consumers: Build lasting relationships with current customers by offering products and services that keep them loyal and engaged, reducing attrition in an increasingly competitive market.