Report: US Banks Face Satisfaction Paradox, Following Silicon Valley Bank Collapse

A recent Banking Disruption Index by global digital transformation company GFT has shed light on a contrasting sentiment among US banking customers. The study reveals that while 42% of US consumers are content with their banking services, a significant 58% feel there’s room for improvement.

The research, which encompassed 2,000 US consumers and an additional 10,000 from countries including the UK, Germany, Italy, Japan, and Poland, suggests that US banks, despite enjoying higher satisfaction rates than their global counterparts, face challenges in fully meeting customer expectations.

In the evolving financial landscape marked by the rise of fintechs and digital challengers, even established banks are reassessing their strategies. This introspection has been intensified by events like the collapse of Silicon Valley Bank, raising concerns about the industry’s resilience.

Interestingly, despite the evident satisfaction disparity, a mere 14% of global consumers are contemplating a shift from their current banks, with a solid 70% showing no inclination to change. Trust, it seems, remains a cornerstone, with 78% of consumers still placing their confidence in traditional banking institutions.

The study also delves into the nuances of customer satisfaction across countries. For instance, German consumers appear less content, with 5% expressing significant dissatisfaction. This is in contrast to 2% in both the US and UK, 3% in Italy, and 1% in Japan and Poland.

Regulatory frameworks play a pivotal role in shaping consumer trust. The Banking Disruption Index underscores a correlation between Americans’ relative satisfaction with their banks and their trust levels. Notably, 50% of the surveyed Americans mentioned that their trust in banks has remained consistent over the past year, with 28% indicating an uptick in trust.

The report also touches upon the concept of open banking. While globally, 52% of consumers are familiar with the term, a significant 76% don’t recognize its direct benefits. Marco Santos, CEO Americas at GFT, emphasized the potential of regulated programs to reinforce the banking sector’s stability.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.


Tagged : / /

US Officials Consider Expanding Deposit Insurance Coverage

US officials are reportedly studying ways to expand deposit insurance coverage to protect depositors and prevent capital from being pulled from smaller banks to supposedly safer-looking heavyweights. The current deposit insurance cap under the Federal Deposit Insurance Corporation (FDIC) stands at $250,000. However, following the collapse of several banks in March, there have been calls to increase that amount.

Organizations such as the Mid-Size Bank Coalition of America have called for the cap to be lifted for the next two years. They argue that expanding the insurance coverage would provide necessary protection to depositors during these uncertain times.

According to a Bloomberg report on March 21, Treasury Department staff members are currently discussing the possibility of the FDIC being able to expand the current deposit insurance beyond the max cap to cover all deposits. The FDIC has reported that domestic U.S. bank deposits totaled $17.7 trillion as of December 31.

However, such a move would ultimately depend on the level of emergency authority federal regulators have and whether the insurance cap can be increased without formal consent from Congress. Bloomberg’s sources indicated that U.S. authorities do not deem such a drastic move necessary at the moment, as recent steps taken by financial regulators are likely to be sufficient. The potential strategy is being considered just in case the current situation worsens.

In response to recent bank collapses, the Federal Reserve rolled out the $25 billion Bank Term Funding Program (BTFP) on March 13 to stem any further contagion. This move by the government is an attempt to maintain stability in the financial system and restore confidence in banks.

Meanwhile, in a March 20 press briefing, White House Press Secretary Karine Jean-Pierre was asked about the federal government’s view on expanding FDIC insurance beyond $250,000. Jean-Pierre emphasized that the government’s focus is on ensuring the stability of the financial system and creating a fair playing field for all banks. She also highlighted that recent actions taken by the government have instilled confidence in the public regarding their deposits, stating that “Americans should be confident of their deposits. We’ll be there when they need them.”

While the current situation may not require such a drastic move, the possibility of expanding deposit insurance coverage beyond the current cap is being considered. The government will continue to monitor the situation and take necessary steps to ensure the stability of the financial system.


Tagged : / / /

US Banking Crisis Fuels Regulation Debate

In recent years, the banking industry in the United States has been confronted with a number of issues, including the failure of large banks and the necessity of involvement by the federal government to avert an economic meltdown. These problems have made it necessary for the federal government to get involved. As a result of these events, discussions on the most effective ways to shield the economy and fend off any potential crises in the future have been reignited.

One of the most prominent economists in the world, Peter Schiff, is one of the primary voices in this debate. He maintains that there is a possibility that the present economic crisis may become much more severe if the regulations that are put on banks are made more stringent. Schiff makes reference to the global financial crisis that took place in 2008, which was in large part precipitated by the collapse of the housing market. Schiff, on the other hand, contends that “too much government regulation” was the primary factor that led to the disaster.

The opinion that Schiff is advocating, on the other hand, is not shared by everyone. After conducting a more in-depth investigation of Silicon Valley Bank (SVB) recently, a group of economists came to the conclusion that approximately 190 banks across the United States are in danger of failing as a result of the actions of their depositors. This was the finding that led to this conclusion. They argue that the monetary policies that are written down by central banks might be harmful to long-term assets such as mortgages and government bonds, which would result in losses for financial institutions if they were to invest in these types of assets.

This word of warning calls attention to the problems that the banking industry in the United States is now facing and the need of giving careful consideration to the impact that changes in regulatory and monetary policies will have. As the economy continues to shift and new problems emerge, policymakers will need to work together to devise solutions that will satisfy the concerns of a wide variety of interested parties while also protecting the financial well-being of the banking industry and the economy as a whole.


Tagged : / / / / /

Group of US Banks Launch Initiative To Promote Adoption of New ‘USDF’ Stablecoin

US banks are jumping headfirst into the world of stablecoins as a group of US-backed financial institutions makes plans to mint a new stablecoin.

According to a press release, the “USDF Consortium” will mint a US-dollar pegged stablecoin (USDF) that’s redeemable on a 1:1 basis from any of the consortium’s members.

The USDF Consortium’s founding banks include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank.

The fintech company Figure Technologies and the joint venture JAM FINTOP are also partners on the stablecoin project, which will launch on the Provenance Blockchain.

Explains Figure CEO Mike Cagney,

“USDF opens up endless possibilities for the expanding world of DeFi transactions.

The ease and immediacy of using USDF for on-chain transactions was demonstrated this fall when NYCB minted USDF used to settle securities trades executed on Figure’s alternative trading systems.

We are tremendously excited that NYCB expects to be minting USDF on demand and on a regular basis in the coming weeks.”

The USDF stablecoin will be programmed to prevent transfers to wallets without bank-compliant know your customer or anti-money laundering review processes, per the project’s website.

The USDF Consortium also claims their stablecoin will satisfy the recommendations laid out by the President’s Working Group Report on the sector.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix



Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Alberto Andrei Rosu/Sensvector


Tagged : / / / / / / /
Bitcoin (BTC) $ 43,967.78 0.33%
Ethereum (ETH) $ 2,360.11 1.91%
Litecoin (LTC) $ 76.44 3.44%
Bitcoin Cash (BCH) $ 249.03 0.95%