New Session Announcement: How Fintech and Banks Can Use Funds Transfer Pricing to Drive Profitable Loan and Deposit Growth
Making loans and gathering deposits are core financial services activities. Advanced fintechs are utilizing funds transfer pricing (FTP) to help determine how to price these activities. This alone is challenging, but recent changes in key market rates (i.e., Libor phase-out and SOFR phase-in) are making this even more challenging. We will describe the fundamental basis for FTP, key components, and how changes in market interest rates are affecting FTP approaches in many financial institutions. If your institution is competing for loans and deposits, you need to understand this key component to pricing decisions for loans and deposits.