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Current Account Interest Rates Consensus: Let´s create the best offer! All discussions

Let´s create the best offer!

From mk on 17.09.2015 at 13:56

Dear Members,

As an open, transparent and integrative bank, we want to discuss all kinds of financial topics with our community members and integrate them into our decision-making process.

We have decided to create this group to discuss our interest rates offering on Current Account balance with you to achieve a broad consensus together. We ask you kindly to make constructive suggestions that reflect the position of all parties as interest rates are important for you, other customers and the bank. Indeed, to achieve a balanced and sustainable relationship, please consider in your suggestions that Fidor also has to make a profit to ensure that we can grow our open and transparent banking services to more people in more countries.

We are very much looking forward to your contribution and insightful discussions.

Best Regards,
Matthias Kröner, CEO of Fidor Bank


blobby wrote on 17.09.2015 at 22:18

As you say the Bank has to be profitable as otherwise whatever interest rate is promised cannot be delivered in the long term. It therefore needs to be linked to money market rates as the funds in the current account are effectively on call. The Bank needs to calculate for the volume of business it is planning what margin it needs to cover it's costs and make an adequate profit to sustain and grow it's business in accordance with it's plans. The balance can then be divided fairly between the interested parties (ie the Bank and it's customers). The biggest issue is the costs incurred in generating the margin. These need to be seen to be reasonable as well as reflecting an efficient organisation, With rapid technology development the costs are a moving target and the Bank needs to be seen to continually being reducing these costs for a given volume of business. This is not easy to achieve in the real world of day to day differences between people. I think the most important thing is the Bank is seen to have the right attitude rather than any one formula being more appropriate than another. I realise that this is not being specific but your approach is unique in aiming to get consensus and I think that this can only be achieved by the Bank being seen to have the right attitude. I hope these comments help the debate.

John L Hales


BekLOPD wrote on 18.09.2015 at 17:07

Hi blobby! Thanks for these words! That's excactly how it should work and that's the approach of Fidor Bank! :)


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