Interest rates are rising worldwide as central banks try to slow down the increasing inflation in the post-pandemic economy. Recently, the Federal Reserve approved a 25 basis point rate hike to combat multi-decade high inflation. However, most analysts believe this is only the beginning, and more interest rate hikes are ahead. As a result, a higher interest rates environment implies distinct benefits for the banking sector, enabling banks to earn higher interest income.
Furthermore, the global banking market had a $8.2 trillion market cap as of Q3 2021 and is expected to grow significantly. This growth rate will be achieved due to the increasing number of customers and digital-driven advancement in banking products to meet customers’ needs.
