Economic boost on banking trends
What to expect as a result of recent growth in the economy.
12:33 13 May 2013
Many business industries, including the banking industry, will be relieved by the recent news that the UK escaped a triple-dip recession since it posted a 0.3% growth rate for the first three months of the year. Many won’t see a 0.3% as much of a success but any type of growth in the economy is an excellent sign, even if the growth seems small.
What does this news mean specifically for the banking industry?
- Security—banks have been concerned about their financial status and whether or not it was a wise move to lend so much money, collectively, to high-risk consumers. This news means the banking industry hasn’t suffered irrevocable damage.
- Loans—while banks may be a little leery of giving more money out to high risk entities, they may be giving out more mortgages to qualified lenders, as well as funding more small and medium sized business ventures.
- Interest rates—with economic improvement comes occasional interest rate improvement. Now is a good time to compare rates to ensure you have the best deal for your savings accounts, and lowest ones on your loans.
How does this news for the banking industry translate to the average person?
- Savings accounts—right now, or in the hopefully near future, the banking industry may be trying to woo more customers by improving the interest rates, take advantage by establishing a savings account.
- Loans—if you have a good credit rating and some savings now may be a good time to launch that small business you’ve been planning, or even purchase a home.
- Shopping—yes, shopping. Growth in the economy eventually leads to your ability to do more shopping because if the trend continues prices should remain competitive which means that your money should go further.
The banking industry is just one of the economic thermometers available and this small amount of growth can indicate much better days ahead, though progress may still seem slow.