Competition for deposits is heating up as summer approaches, and banks are responding in all sorts of ways — from launching digital-only platforms to raising CD rates to reviving debit rewards. But rising interest rates could weaken demand for loans, especially mortgages.
Citigroup Inc. is considering the idea, as well as other types of rewards for checking and savings accounts, to entice customers to sign up for its fledgling online bank, which it began to roll out nationwide earlier this year.
Social Finance said it will start offering deposit accounts and debit cards to some customers next month. It's the first major new product rollout under Chief Executive Officer Anthony Noto.
As with most of the company's inventions, an Amazon checking account would more deeply embed customers into an Amazon ecosystem that provides an endless flow of data and efficiencies.
Two civil rights groups in Texas allege that Capital One's TV ads featuring black celebrities encourage minority customers to deposit money and use debit cards, while its branch closings in their neighborhoods cut them off from loans and other services.
Fears about regulators coming down on digital currency trading caused an epic crash in the market this week. But reining in this evolving asset class won't be easy.
Capital One became the latest bank to feel customers' online wrath last week after reports that some customers were being charged twice for debit card activity. But they were hardly alone.
