State of the Economy 2023

For the past year, the underlying sentiment was that the US was headed on a one-way trip towards a recession induced by the Federal Reserve’s aggressive rate hiking campaign. Over a year removed from when the central bank began raising rates, the US economy has however continued to defy expectations and edge closer to the coveted soft landing. 

Download our report for our analysts’ predictions for 2023 and beyond.

Some key takeaways:

A flurry of acquisition offers in the banking category demonstrate a battle between brands to keep customers, as well as deposits, intact. Mail volume for CDs increased 70% MoM in Apr-23, signaling an increase in marketing post-SVB crisis; whereas, total mail volume for all three categories nearly tripled YoY. Interest rates have nearly reached their peak with brands taking advantage of attracting customers with lucrative APYs. Brands focused on helping customers maximize returns by showcasing their best product rates, giving customers options and generating trust. Expect offers to be rampant as brands strive to welcome new customers as well as make efforts to retain customers.

Due to a steady homebuying demand and lack of inventory, M&L offers didn’t pick up but remained consistent to meet the demand. Mortgage & Loans mailing activity remained consistent since March 2023. In Q2 2023, mail volume remained unchanged, but decreased 59% YoY, indicating a slump in lending activity with the Fed rate hike and expensive home-buying situation. Refinancing activity also took a huge hit, with mailing activity down by 73% YoY.

What does this mean for brands? Brands should provide service to clients in line with market expectations. Brands need to enlighten and support customers through hands-on, relationship-focused guidance, rather than convincing customers to lock in rates and pushing them to make a quick decision.