Sorting out rate rise impact on customers
Using data in your bank can help pinpoint borrowers with most potential
In March, the Federal Reserve raised the target federal funds rate by a quarter of a percentage point, marking the second rate increase in three months. The Fed has indicated that it expects to make additional rate hikes in 2017. The Fed’s adjustment of interest rates is largely a reaction to current economic conditions, so it can be difficult to accurately speculate about the future. However, there are some indicators that can help predict how a rate hike will influence a bank’s customers and, ultimately, its bottom line.