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The Impact of Inflation: Present and Future
Consumers’ inflation fears have come to pass, dragging down financial services with them. Last month, we reported that the median inflation expectation soared to over 5%, according to the Conference Board’s widely tracked US economic indicators. This month, the U.S. Bureau of Labor Statistics reported 4.2% inflation over the last 12 months, driven by energy prices. Energy prices soared 24%, while the price of gasoline skyrocketed 40.5%.
Alpharank's first-party shows that the consumer has continued to pull back:
May data show consumers are continuing to cut back due to economic uncertainty. Deposits are flat, likely due to rising daily expenses. The number of new credit cards opened has declined by 2%, and home lending is also flat. Vehicle loans saw a slight increase as driving is often a necessity and represents essential replacement buying rather than confident consumer spending.
🚗 Vehicle Loans: +4%
💰 Personal Loans: +1%
💵 Deposits: 0%
🏡 Home Lending: 0%
💳 Credit Cards: -2%
Our May trends data confirms what the market is seeing: the auto market continues to grow even amid economic turmoil. However, as we know, families still need mortgages, and individuals continue to deposit money. What does this mean for your financial institution? Now more than ever, in this climate of consumer financial stress, your FIs' deposit and lending growth investments must be as strategic and effective as possible.
Alpharank helps its clients navigate to optimize growth investment, typically seeing +50% increase in funded accounts in the first six months. Reach out to our team today to see how we can help you do just this!
About Alpharank and our data:
200+ banks and credit unions trust Alpharank to optimize production from their websites and online applications, resulting in dollars booked to the balance sheet. Without storing personal information, our data models and benchmarks are trained on a unique dataset of +7.5 billion full-funnel events with known balance-sheet outcomes!
Most financial institutions buy clicks from Google, Meta, etc., and just hope for funded applications. Alpharank measures the quality of your clicks so you only buy the good stuff. Stop their algorithm from draining your budget while sending you lookers, not bookers. Pay for performance only and get 50% more for your marketing dollar.
🔎 Learn more about how you win with better click intent, journey efficiency and effectiveness, prospect quality, and campaign optimization. Request a free competitive assessment today.