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Given the popularity of Muse, Instinct, Dots, ChatGPT, and other third-party agents, these tools have the capacity to alter deposit performance. These AI agents can continuously compare rates, fees, deposit insurance, bank safety and make strong recommendations including preparing account opening applications. Eventually, these agents will help a customer act. In this article, we examine…

The “Three-Body Problem,” currently made popular by our new favorite author, Cixin Liu, is the concept of instability when three similar-sized celestial objects interact. The problem is currently unsolvable. Banking has a similar physics problem when management juggles strategy, risk/profitability, and customer behavior. This article will discuss the challenge of managing three potentially opposing forces…

Most market participants are focused on just one monetary policy tool available to the Fed – short-term, federal funds rates.  However, the other critical monetary instruments available to the Fed are quantitative easing and tightening (QE and QT, respectively).  While the Fed’s current actions on QT have been deemed long-term, slow-moving, and compared to watching…