The model looks sound on the surface: offer mortgages to borrowers with poorer credit ratings at higher rates. But as the US subprime mortgage crisis of 2007-08 proved, the risks associated with this strategy may override the benefits. This mortgage crisis sparked a chain of events that shook the world and ended in a global meltdown.
Federal Reserve Bank of Dallas
A bank won’t survive without customer trust; if customers don’t feel safe entrusting their finances with their bank, they will move on. Gaining that trust in the Digital Age is more complicated than in the past, with new banking channels available to a new generation of customers with new cultural priorities. Astute bank leaders are working diligently to maintain the crucial human (H) factor, prioritizing culture alongside more traditional top objectives.