John Ziegelbauer Quotations

New services reflect the changing demographics of bank customers and banks' are adopting new strategies for retaining core deposits. The first baby boomers will turn 65 in 2011, and by 2030, one in five Americans is expected to be 65 or older. Add the trend toward increased equity ownership, and it's hardly surprising that more than half of the bankers expect to offer brokerage services (61%) and half will offer mutual funds (50%) in the next three years.

Despite their concern about retaining core deposits, few bankers plan to change their tactics for funding growth.

Bankers face a wide spectrum of businesses that are fighting for these deposits. Other banks, credit unions, brokerage firms, mutual fund companies and Internet banks are all looking to capture the same depositor dollars.

There are definitely more bankers sitting on the fence this year when it comes to the state of the national economy. There appears to be much indecision about how things will fall out in 2006 with such important things, such as gas prices and the housing bubble, still so uncertain.