How Can Financial Firms Improve Customer Service after the Pandemic?

Financial firms generate profits by borrowing short-term cash cheaply and lending or investing it for higher, long-term returns. A steeper yield curve—which indicates a wider gap between short-term and long-term interest rates—means more profitability. But the yield curve has been relatively flat in recent years, squeezing profits and adding pressure to counter with aggressive cost-cutting measures.

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