V. Strategic Considerations and Recommendations Bank of Trust’s clientele consists predominantly of fiscally educated retirees and middle-class families. As a result, most of the business conducted with our clients includes giving advice and providing products such as annuities and insurance, stock purchases, mutual funds, and traditional bank accounts. The changes in the economy will influence the kind of business Bank of Trust conducts with consumers as well as the recommendations and advice we provide to current and prospective clients. Although consumer confidence has declined with the decrease in monetary supply, the analysis explained in Aggregate Supply and Demand Section concluded that interest rates will decline in the short term following the Federal Reserve’s monetary policy decision to increase the money supply. The low growth rate of inflation of less than 1% will lessen the risk of inflation associated with the increase of aggregate demand caused by declining interest rates, boosting consumer confidence. The expected slow rate of inflation provides consumers with a higher rate of return in the long term, aiding in consumer confidence, which boosts Bank of Trust’s marketability. Because a large goal of the middle-aged clientele is to invest for the future, we would market and recommend to them to capitalize on purchasing stocks, bonds, and real estate investments with the new favorable interest rates. The increase in middle-class borrowering aids greatly in securing the incomes of retirees, as purchasing stocks by the middle age market increases the profitability of corporations. This growth in profitability helps the retired customer because their retirement funds will continue to grow to stay ahead of of inflation. The marketing goal toward retired customers is to instill confidence that the rate of inflation will not grow beyond their expected rate of return. Our financial education division could offer information in the form of additional workshops geared toward educating consumers on the forecasted economy to provide future security reassurance. During times of decreased interest rates, refinancing is a common fiscal decision among borrowers. Although refinancing with current customers is not in Bank of Trust’s best interest, the decreased interest rates provide the bank with the optimal opportunity to attract prospective clientele by providing competing refinancing rates with their current and/or competing banks.
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