26/07/2024
What is soon to become banks´ #1 source of funding?🤑
You!👉🏼
Who cares to check banks´ funding sources?😏 Frankly, few of us and understandably so. There are more exhilarating hobbies. At Upworth, we crunched the numbers for you and they are telling😮
1️⃣ Household deposits (think transaction accounts, savings accounts, term deposits... Basically, your savings) now represent ~29% of Australian bank funding, only 3 tiny percentage points behind wholesale deposits (the money of businesses and government entities) 👀
2️⃣ The share of household deposits in AUS bank funding has been multiplied by 1.7x since 2008, increasing from 17% to 29%, soon to become the top funding source at this growth rate (the fastest of all funding sources) 🎢
3️⃣ Without becoming too technical, it matters to understand the popularity of household deposits in bank funding. They are amongst the "best kind" of money banks can hope for: they are cheaper, more stable sources of funding that also carry the expectation of future profits through a long-term relationship 👑
So what? So, your savings have never mattered more! Banks increasingly depend on you to fund themselves. This is not a fantasy, this is not virtual, this is not a Finance PhD theorem🤯
Claim your power, park your money where you get the best rate! Sign up for Upworth for free, safely connect your accounts through Open Banking and immediately know the best available rate 💪🏼
Dare to be free 🗽 Link in comments⤵
