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While banks have prepared for a potential federal interest rate hike for the first time in nearly 10 years, many are being forced to deal with continuing difficulty maintaining their independence. Still, there will be more room for banks to profit in 2016 and we expect the finance industry to get a leg up from the fed's first interest rate hike in years.
While the pressure to merge had been building for years, it appears that the floodgates have finally broken and the mergers are beginning. Even solvent local banks are looking to mergers to ensure they can continue to serve the community while meeting regulatory guidelines. Whether it is done through merging holding companies or the banks themselves, this is something sure to continue into 2016.
Some of that pressure that has led to mergers will see some relief for banks, with the federal interest rate set to rise. This will give banks the wiggle room for more profits but could lead to a hunt for market share with some banks maintaining low rates to pull in new customers. While this might mean short-term gains, the long-term viability of this kind of play for market share is risky.
The security of all kinds of online financial transactions continues to be a major concern for every segment of business. While banks are often the most well protected, they are pouring resources into maintaining that protection. With new technology like the credit card chip and pin system making its way through the system, even small retailers are being made a part of cutting edge financial security steps.
Banks combining power, keeping identities
Banks on interest rate rise: Bring it on!
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Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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