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Yahoo
29 minutes ago
- Business
- Yahoo
Hybrid branch-bank models & digital inclusion in retail banking
Retail banking has undergone profound shifts over the past decade. Digital channels have undeniably transformed service delivery and broadened financial inclusion. Yet, despite the rise of mobile banking apps and AI-driven tools, the physical branch continues to play a vital role - especially in fostering trust, supporting the financially vulnerable, and anchoring community relationships. The hybrid branch-bank model is not simply a compromise between old and new. It is a strategic integration - blending the familiarity and assurance of in-person banking with the convenience and efficiency of digital services. This evolution is not driven by nostalgia but by customer demand across demographics and regions. Hybrid models reflect how real people live, bank, and engage. In emerging markets, branches remain the gateway to formal banking. They provide critical services where digital penetration remains low or inconsistent. And even in digitally mature countries, certain customer segments - the elderly, microentrepreneurs, and those with accessibility needs - prefer or rely on face-to-face interactions. Branches are not obsolete; they are being redefined. A modern hybrid branch is no longer a transactional venue. Instead, it becomes a consultative hub - a space where complex financial decisions are discussed, where small businesses are nurtured, and where financial literacy is advanced. The future branch will be smaller, smarter, and more purposeful. It may have fewer counters, but it will have more tools - biometric authentication points, digital onboarding stations, and live remote advisory services. In the hybrid model, branch staff are empowered to play broader roles. The traditional teller role is evolving into that of a universal banker - someone capable of guiding customers across physical and digital touchpoints. Upskilling, soft skills, and data literacy are becoming as important as operational knowledge. This human-centric approach adds warmth to technology. Importantly, digital inclusion must not be an afterthought. In designing hybrid models, banks must ensure that technology is not a barrier. Interfaces must be intuitive. Language support must be thoughtful. Accessibility features must be embedded. And above all, empathy must underpin every digital journey. This is how we ensure inclusion is meaningful and sustainable. Crisis periods have reinforced the value of having dual infrastructure. When digital platforms faced outages or cybersecurity threats, branches served as fallback anchors. Conversely, during lockdowns, mobile and online channels ensured continuity. Together, they build systemic resilience - something every modern bank needs as part of its risk strategy. Another advantage of the hybrid approach is the capacity to drive personalised experiences. Customer insights gathered digitally can be deepened through human interaction. A digital trigger - say, a mortgage query - can lead to an in-branch consultation. This cross-channel intelligence, when handled responsibly, can uplift customer satisfaction and reduce churn. The regulatory environment is also evolving. Hybrid models offer a proactive response - ensuring no customer is left behind, while also enabling banks to comply with evolving global mandates around financial access and consumer duty. Banks that embed digital within physical branches can serve communities more consistently and transparently. Additionally, there is a growing opportunity to repurpose branches as centres of community engagement. From hosting SME workshops to facilitating digital literacy drives, branches can serve a broader social role. These initiatives not only enhance financial inclusion but also reinforce a bank's standing as a trusted local partner. Data analytics also plays a pivotal role. By leveraging in-branch behavioural insights and digital footprints, banks can personalise services, improve compliance, and reduce operating costs. But this must be done with care. Customers expect transparency - they want to know how their data is used and why. When done ethically, data can be a force for empowerment rather than exclusion. This shift to hybridisation is not merely a tactical adjustment but a reflection of long-term structural change in customer expectations. Customers today want contextual banking - where the service, advice, or access is timely, relevant, and seamless across platforms. A hybrid branch delivers that continuity. One important factor often overlooked is emotional intelligence in banking. Human interactions at branches still serve an irreplaceable role in resolving distress, clarifying complexity, or simply reassuring clients during uncertain economic times. While algorithms can recommend, only people can empathise. From a regulatory perspective, hybrid branches align with growing expectations around inclusive access and responsible service models. As banks transition further into digital ecosystems, supervisory bodies are placing greater emphasis on fairness, reach, and customer understanding. Maintaining localised, digitally supported branches is one of the most effective ways to ensure these priorities are met in practice. Globally, we observe that national strategies around financial wellbeing - such as the UK's Consumer Duty or India's Jan Dhan mission - align well with hybrid frameworks. Both emphasise simplicity, reach, and financial literacy. A branch with integrated digital advisory services can execute this vision at scale. Hybrid models are also better suited to engaging younger customers, who may begin their journey digitally but require guidance on milestone decisions - buying a home, saving for education, or starting a small enterprise. These are moments where in-person conversations add trust to technology. Cost efficiency is often cited as a barrier to retaining physical branches. However, data shows that branches reconfigured for multi-functionality, co-location with community services, and intelligent workforce deployment can achieve profitable impact. It's not about square footage; it's about strategic utility. Leadership teams across global retail banks are increasingly looking at hybrid not as a transitional model but as a permanent backbone. It enables a distributed presence, resilience in operations, and a human-digital blend that reflects modern service economies. Banks that act now will shape the next decade of responsible banking. To be clear, this is not a nostalgic defence of the branch. It is a forward-looking argument grounded in customer data, regulatory trends, and operational resilience. Digital-only may scale, but hybrid delivers sustainability - with impact rooted in real people, real lives, and real outcomes. In summary, the hybrid branch-bank model is a dynamic, inclusive, and resilient response to the evolving landscape of financial services. It retains the best of traditional banking - personal trust, familiarity, and presence - while layering on the tools of tomorrow. As financial leaders, the onus is on us to ensure that our strategies reflect not just digital ambition but human purpose. Dr. Gulzar Singh is Founder & CEO of Phoenix Thoughtworks "Hybrid branch-bank models & digital inclusion in retail banking" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
Robert Kiyosaki Warns That Bonds Aren't ‘Safe' — Do Experts Agree?
Recently, the writer of 'Rich Dad, Poor Dad' Robert Kiyosaki posted on X that 'only chumps' would believe bonds are a safe investment. Kiyosaki went on to say that bonds come with counter-party risk and that the only truly safe investments are gold, silver and Bitcoin. Kiyosaki called everything else 'toilet paper.' Discover Next: Read Next: Is this true? GOBankingRates reached out to other financial experts to find out their takes on Kiyosaki's statements. Read on to see what the consensus is on whether bonds are a safe investment or not. Kiyosaki's statement about bonds doesn't take into account the different types of bonds. 'Not all bonds are created equal,' explained Drew Stevens, president of Wisdom to Wealth. 'Treasuries, municipal and corporate bonds serve different purposes and react differently to market stressors.' Treasury bonds are issued by the U.S. government, so their value is guaranteed so long as their government is standing, but the interest they deliver may waver if interest rates rise (which they have been doing). These are the types of bonds Kiyosaki is likely referring to in his argument. Trending Now: Municipal bonds are issued by state and local governments. They also offer appealing rates to investors. However, if the government were to go bankrupt, then the bond's value is not guaranteed. Corporate bonds are issued by businesses. The value of these, as you might have guessed, really depends on the strength of the corporation that issued them. However, because of this inherent risk, the ultimate yield can sometimes be extremely high in comparison with the other bonds. If passed in its current state, President Donald Trump's 'One Big Beautiful Bill' would add $2.4 trillion to the deficit. Financial expert and strategist David Lester said that amount of debt might cost bond investors — specifically treasury bonds. 'As U.S. debt increases, lenders — including foreign governments and institutional investors — may begin demanding higher yields to compensate for the perceived risk,' Lester said. 'Should that happen, older treasury bonds offering lower yields could lose appeal, as new issuances offer more competitive rates. So Robert is most likely correct about staying away from bonds if the bill passes.' If investors want to look into bonds, one option that would be protected against the mounting national debt is an inflation-protected bond. 'These instruments adjust both the principal and the interest with the consumer price index, so the real value of the payment stream stays intact,' explained Sami Andreani, finance expert and chief financial officer at Oppizi. 'The trade-off is a smaller starting yield, yet many households decide the shield against inflation is worth the lower current income.' The majority of experts agreed that bonds should just be one piece of your financial portfolio. 'Labeling all bonds as 'unsafe' is a sweeping generalization,' Stevens said. 'Bonds, like any asset class, require context and strategy. When used properly, they can still play a critical role in portfolio diversification and capital preservation, especially for conservative investors or those nearing retirement.' Noam Korbl is a personal finance expert in addition to co-founder and chief operating officer at PropFirms. Korbl stressed that bonds are not meant to be a some get-rich-quick scheme, but rather a tool to weather volatility in shaky markets. 'In the last decade, even through inflation and central bank shifts, treasury bonds have delivered average annual returns around 3% to 4%, depending on duration. That might not impress crypto enthusiasts, but for pension funds and people nearing retirement, that consistency matters,' Korbl explained. Korbl added that bonds come with many tax advantages as well. 'In certain states like Florida or Texas where state income tax is zero, interest from federal bonds comes in clean. Municipal bonds go even further with triple-tax-free status in the state they're issued,' Korbl said. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Big Shakeups Coming to Social Security in 2025 The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on Robert Kiyosaki Warns That Bonds Aren't 'Safe' — Do Experts Agree?
Entrepreneur
4 hours ago
- Business
- Entrepreneur
How India's Digital Natives are Redefining Financial Services
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ask a 20-year-old today about their money goals; chances are, they'll offer a detailed perspective on why financial literacy and independence are essential. Younger generations—particularly Gen Z and Millennials—engage with financial services earlier and more actively than previous generations, showing increased seriousness about financial planning, savings, and investment. Delhi-based financial analyst Ayush Dawar shares, "I aspire for financial freedom, having enough passive in come or resources to cover life's needs to lead a life full of adventure, creativ ity, and generosity." Gen Z is a significant and rapidly growing segment of the customer base for BFSI (Banking, Financial Services, and Insurance). From a barter system to the Unified Payments Interface (UPI), India's financial transformation is a noteworthy one, one that leverages technology to its finest. "As the first truly tech-native generation, Gen Z's financial habits are deeply intertwined with technology. They're app-first for everything – payments, expense tracking, and even diving into invest ments early," shares Adarsh Agarwal, chief actuary and product officer, Go Digit General Insurance. From mobile applications and e-signature capabilities to offering alternative investments and gamification, financial services providers are constantly evolving with new offerings. Digital Over Physical Kadence International reports that 67 per cent of Indian youth are now using neo-banking services, moving away from traditional physical banks. Reserve Bank Innovation Hub observed that most of the Gen Z participants hadn't visited a physical bank branch or ATM over the last three years (at a minimum). Convenience, speed, and accessibility are the reasons. However, those preferring the tradi tional route hold human interaction and relationship managers integral. "Gen Z thinks about money very differently. They have grown up in a digital world where they expect things to be instant, transpar ent, and intuitive. Unlike millennials who often lean on traditional banking, Gen Z questions everything from hidden fees to outdated processes," shares Vinay Bagri, CEO and Co-founder, Niyo. Hence, financial institutions must adopt a digital-first approach with a simple and cool UI/UX. "We also integrate visa and flight booking, insurance, and rewards in one seamless app because Gen Z doesn't want ten apps for ten purposes," adds Bagri. In order to stay abreast, Indian banks are working to improve their user interface (UI) and user experience (UX) to enhance customer satisfaction and en gagement. Case in point, with the iMobile app, ICICI Bank is providing personalised offers and alerts based on spending pat terns and account behaviour, i.e. receiving targeted promotions for credit cards or in surance plans that align with a customer's financial habits Tailored offerings Agarwal feels tailoring products ac cording to the needs and trends of the hour is crucial to align with the values and needs of a target market like Gen Z. A 2024 Redseer report stated that personal loans made up 40 per cent of Gen Z's borrowing, followed by credit card spending at 27 per cent. Pratik Shah, partner and national leader – Financial Services, EY India, earlier noted that credit cards are a growing trend with 46 per cent of Gen Z choosing them for rewards and discounts, and 36 per cent for convenience. Education and healthcare are key cat egories under financing. Akshay Mehrotra, co-founder and CEO of Fibe, shares that the startup identified the shift in the mindset of Gen Z early in its journey. "Gen Z doesn't want to live paycheck to paycheck—they seek financial flexibility and the ability to access their earnings when needed," he shares. Great Learning's 2024 report stated that 83 per cent of freshers intended to upskill in FY25. "With upskilling essential in today's fast-paced world, our education financing solutions support young professionals to up grade their careers and stay ahead in an ever evolving job market," Fibe's chief shares. It is also enabling customers to tap into their mutual funds. "We also offer Loan Against Mutual Funds, enabling users to unlock val ue from their investments without redemp tion… We see Loan Against Mutual Fund a hit with Gen Z, and they love the idea of Interest only product, and we have high demand coming in from them," Mehrotra notes. A loan against mutual funds lets investors use their mutual fund units as security to borrow money. The lender checks the value of these units and of fers a loan based on a percentage of that value. This is a good option for those who need money but don't want to sell their investments, allowing them to keep earning potential returns. Building Ecosystems Fintech players are levelling their game by going the extra mile to attract and retain existing and potential customers, particularly Gen Z. For instance, Go Digit, to encourage a shift to a more environ mentally friendly transportation mode, offers EV Motor add-on with competitive premium rates. Beyond the product, Niyo is creating an ecosystem that speaks the Gen Z language. "Our community platform helps them connect with like minded peers across the country, share knowledge, and feel empowered. We share educational content and collabo rate with influential voices in travel. Gen Z doesn't seek complexity, they want clarity, speed, and rewards," shares Bagri. The Finfluencers Landscape The rise of financial influencers (finflu encers) and content has made youngsters comfortable with topics related to money matters. As of December 2024, India had approximately 232,000 finfluencers. This connection is being tapped by institu tions, startups, and corporations. Eighty two per cent of retail investors in India have acted on financial advice from influ encers. "The relatability and authenticity of the influencer are the primary factors that drive their trust. Insurance compa nies are also leveraging brand ambassa dors who embody the values and beliefs of Gen Z," says Agarwal. Calling social media today is what word-of-mouth was two decades ago, but effective, Bagri shares, "Gen Z is constantly learning from people they trust online. Whether it's a finance creator explaining forex charges or a travel vlogger talking about our card benefits abroad, authenticity matters." India's private banks, such as HDFC Bank, are collaborating with influencers on social media to promote and establish their products. "Whether it's busting forex myths on a travel vlog or showing real-time currency savings on a trip to Bali, we meet Gen Z where they scroll," Bagri adds. By 2030, Gen Z is expected to make up 36 per cent of India's workforce and con tribute nearly USD 730 billion in direct spending. This growing economic influ ence means financial institutions must continuously adapt, offering smarter, simpler, and more intuitive services that speak Gen Z's language.
Khaleej Times
6 hours ago
- Business
- Khaleej Times
UAE: 75,000 students to learn saving, budgeting under 'young investor programme'
UAE companies have launched an initiative to embed essential financial skills such as diligent saving, budgeting and strategic investing into young students from an early age. The programme aims to reach 50 schools and 75,000 students across the UAE. It was launched by National Bonds, UAE's leading Shari'a-compliant savings and investment company, in collaboration with the Knowledge Fund Establishment. The 'Young Investor Programme' blends classroom-based learning with immersive, real life training, offering students a unique and interactive pathway to understanding personal finance. Initially targeting students in Grades 5 and 6, the curriculum introduces fundamental financial concepts in a simplified yet impactful manner. Older students in Grades 11 and 12 also benefit from hands-on workshops hosted at National Bonds' headquarters. These sessions delve into critical topics including budgeting, investment planning, market research, data analysis, and essential communication skills, providing participants with a crucial behind the scenes perspective on the workings of financial services and bridging theoretical knowledge with practical career exposure. The curriculum is structured around six core modules: Money Management, Payment Systems, Loans and Debts, Savings and Investments, Insurance Protection Plans (with a specific focus on Takaful), and Long-Term Financial Planning. Beyond these fundamentals, the program integrates real-life application through engaging role-play exercises, interactive case studies, and practical workshop activities. New modules are continuously being introduced, covering areas such as artificial intelligence, digital currencies, and modern money management practices. During its successful pilot phase, the 'Young Investor Programme' has already been implemented in 11 private schools across Dubai. The participating institutions include Dubai Schools – Al Barsha; Dubai Schools – Al Khawaneej; Dubai Schools – Nad Al Sheba; International School of Creative Science – Nad Al Sheba; American School of Creative Science – Nad Al Sheba; American School of Creative Science – Maliha; American School of Creative Science – Al Layyah; Buds Public School; Nibras International School Dubai; Springdales School Dubai; and St. Mary's Catholic High School. Currently, the programme is catering to 3,500 students in Dubai. Building on this success, the initiative is now expanding beyond Dubai, entering Sharjah through the Masar initiative. National Bonds recently collaborated with the Masar initiative, launched by the Sharjah Capability Development Authority, which aims to empower Emirati university students and recent graduates through a blend of hands-on training and professional mentorship. This partnership ensures continuity in financial education, extending from middle school students in the Young Investor Programme to young adults preparing for the workforce through Masar. Specialised financial literacy workshops help young adults focus on essential concepts such as savings, financial planning, investment awareness, and risk management. National Bonds recently announced a three-year strategic expansion plan for the 'Young Investor Programme', aiming to reach 50 schools and 75,000 students across the UAE through scalable delivery models and regional activations. Beyond traditional classroom learning, students will be challenged to conceptualise real-world investment or business projects, with some receiving feasibility reviews, support, and recognition. Rehab Lootah, Group Deputy CEO at National Bonds, commented on the program's impact: 'The success of the 'Young Investor Programme' reflects our belief that financial education should start early, and in a way that resonates with young minds. By equipping students with the basics of saving and planning, we are helping them build habits that last a lifetime.' Lootah added, 'This initiative is more than just a programme; it's part of a larger movement aligned with the UAE's vision for a knowledge-based economy. As we expand into more emirates, we are proud to be giving the next generation the confidence and tools to navigate their financial future with purpose.'
Forbes
a day ago
- Business
- Forbes
CD Rates Today: June 27, 2025 - Take Home Up To 4.94%
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today's highest CD rate is 4.94% for a jumbo 6-month CD. CD rates from online banks are commonly twice as high as the national average rates. CD ladders let you leverage high rates without locking up all of your money long-term. The best interest rates on CDs—certificates of deposit—range as high as 4.94% today, which is far higher than CD rates were a few years ago. Here's an overview of the best CD rates for you. A CD is a kind of savings account with a fixed interest rate for a given term. You can access your principal and interest payments once the CD term expires; if you withdraw money before that time, you'll incur an early withdrawal penalty . Traditionally, the longer a CD term, the higher the yield, but that dynamic hasn't held in recent years. Make sure you select a CD that matches up with when you'll need the money. Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.29%, but the highest rate is 4.62%. Last week, three-month CDs earned an average of 1.3%. If you're interested in a short-term CD with high yields, consider a six-month CD . The best rate today is 4.94%. The current average APR for a six-month CD is 1.76%, down 0.01 point from last week. The highest interest rate currently available on a 12-month CD—one of the most popular CD terms—is 4.64%. If you discover a rate in that neighborhood, you've found a good deal. That rate hasn't changed much since last week. The average APY, or annual percentage yield, on a one-year CD is now 1.83%, unchanged from a week ago. If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That's the same as this time last week. The average APY for the CD is 1.66%, flat to last week's average. Today's highest rate on a three-year CD is 4.26%, so you'll want to shop around for that rate or something near it. The average APY stands at 1.58%. On a five-year CD , the highest rate today is 4.26%. APYs are averaging 1.59%, similar to last week. The longer the term, the higher the early withdrawal penalty. It's not unusual to lose one full year's worth of interest or more if you break open a five-year CD early. Be absolutely certain you understand the penalty before you make your investment. The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.81%, versus 1.82% last week. Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there's no universally agreed-upon definition regarding what qualifies as a "jumbo" CD. Some banks and credit unions slap the label "jumbo" on CDs you can open with $50,000, $25,000 or even less. Related: CD Interest Rates Forecast: How Good Will They Get? When looking for the best CD rates, cast a wide net. Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you've never heard of provides the highest yields. For example, PenFed Credit Union's CD rates currently range from 2.90% to 3.40% while U.S. Bank CD rates currently range from 0.05% to 0.25%. Other top CD rates by banks include: Opening a CD account requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements, ranging from a few hundred to several thousand dollars. Once your account is open, your principal starts earning the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you've earned. Since the goal is to let your money grow, avoid tapping your cash before the term expires. Doing so will result in an early withdrawal penalty in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties. If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts . You will have to do without the money for as long as the term lasts; otherwise you'll owe an early withdrawal penalty. Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle? The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going "poof" over the course of a year. Not a happy thought, is it? CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don't need immediately, while stocks provide solid long-term returns. You don't want to risk cash you're depending on. The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit. CD rates generally fluctuate the most following the Federal Reserve's decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets. Related: CD Interest Rates Forecast: How Good Will They Get? Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation. Frequently Asked Questions (FAQs) You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD. Follow this plan and you'll have one better-yielding five-year CD maturing each year. If you're ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD. Comparison shop to track down the best CD rates . Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate. CDs usually come with zero fees, meaning your money won't be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts. You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won't need access to your cash in the meantime.
