A few years ago, corporate America buzzed with talk of “quiet quitting.” Now, a banking industry report points to another new trend with an alliterative name: “soft switching.” Large numbers of customers are quietly changing banks, according to an Oct. 20 report from J.D. Power. It’s notoriously hard to change your primary bank account, when you consider direct deposits, automatic withdrawals and all that’s involved in rerouting them. Instead, customers are opening second or third checking accounts at n ...

Core Insights - The national average checking account interest rate is currently 0.7%, which is low compared to other deposit accounts like savings accounts and CDs [2] - High-yield checking accounts are available, with some offering rates as high as 5% APY, but they may come with conditions such as high minimum balances or monthly fees [3] Interest Rate Trends - Checking account rates are variable and have not changed significantly over the past year, although they are higher than in previous years [2] - The federal funds rate influences checking account interest rates, with banks typically increasing yields on savings products when the Federal Reserve raises rates, but checking account rates tend to lag behind [5] Factors Influencing Rates - Individual banks and credit unions set rates based on their need to attract deposits, with competition leading some institutions to offer higher yields [6] - Relationship rates may be offered to loyal customers who maintain multiple accounts with the same bank, incentivizing them to stay [6] Maximizing Checking Account Value - To maximize value, consumers should look for accounts with minimal or no fees, as various fees can diminish account balances [9] - Opting for high-yield or rewards checking accounts can provide better rates, although specific requirements may need to be met [10] - Earning cash back on debit card purchases and meeting account requirements can further enhance the benefits of checking accounts [11][12]

Core Insights - SoFi Technologies has transitioned from being viewed as a niche player in student loan refinancing to a profitable fintech company with expanding operations [1][2] - The company's shares have recently surged, reflecting growing investor interest and confidence in its business model [1] Business Model - SoFi operates as a digital-first platform, allowing users to manage their entire financial life through a single app, which includes services like checking accounts, loan refinancing, stock and crypto trading, and ETF investments [4][5] - This integrated approach increases customer engagement and loyalty by creating higher switching costs compared to traditional banks that specialize in specific areas [6] Financial Performance - SoFi has achieved two consecutive years of positive adjusted net income, with a significant performance boost in Q2 2025, where adjusted net revenue rose 44% year over year to $858 million and adjusted net income surged 459% to $97 million [8] - Membership growth has been robust, with 846,000 new members added in Q2 2025, bringing the total to 11.7 million, more than double the number from three years ago [10] Revenue Diversification - The revenue mix is evolving, with fee-based revenue now contributing 44% of total revenue, indicating a shift beyond the company's original focus on student loan financing [10] - The lending portfolio has also performed well, with a record $8.8 billion in loans originated in the quarter, and a decline in bad debt charge-offs over recent quarters [11]

Core Points - U.S. banks have the legal right to close accounts without prior notice, which can happen for various reasons [1][3][4] - Prolonged inactivity is a common reason for account closure, with specific banks like Wells Fargo and JP Morgan Chase closing accounts after 16 and 18 months of inactivity, respectively [3] - Other reasons for account closure include excessive overdraft fees, low balances, and suspected fraud or suspicious activity [4] Consumer Protection Measures - Some states, such as New York, are proposing legislation that requires banks to notify customers before closing accounts and to return any remaining funds [5] - Consumers are advised to act quickly if they receive a closure notice or if their account is unexpectedly shut down, to resolve the issue and protect their financial standing [5][6] Recommended Actions - In the event of account closure, consumers should contact their bank immediately to understand the reasons for the closure and how to retrieve any remaining balances [6] - It is important for consumers to inquire about settling any outstanding amounts if they owe money [6]

Financial Data and Key Metrics Changes - Third quarter earnings per share increased by 22% to $3.23, with net income of $2.4 billion, marking the second highest quarter on record [5] - Pre-provision pre-tax earnings rose by 13% to $4 billion, with a return on equity improving to 12% for the quarter [6][7] - Year-to-date revenue growth was 12%, and pre-provision pre-tax earnings increased by 19%, achieving positive operating leverage of 4.7% for six consecutive quarters [7][21] Business Line Data and Key Metrics Changes - Canadian Personal Banking saw strong customer growth, with checking account growth nearly double the industry benchmark, and deposits in the savings amplifier account surpassed $12 billion [12] - Canadian Commercial Banking experienced broad-based loan and deposit growth, with fee revenue from integrated treasury and payment solutions up 23% year-to-date [13] - U.S. Personal and Commercial Banking reported a 42% increase in net income, driven by strong pre-provision pre-tax earnings growth of 10% [31] - BMO Wealth Management achieved a 21% increase in net income, supported by strong revenue growth in wealth and asset management [35] - BMO Capital Markets net income rose by 12%, with revenue up 7% due to strong performance in global markets and higher trading revenue [36] Market Data and Key Metrics Changes - Average loans grew by 2% year-over-year, driven by residential mortgages and commercial loans in Canada, while U.S. commercial loans declined due to muted loan demand [25] - Customer deposits increased by 3% from last year, with growth in Canadian everyday banking and commercial operating balances [26] - Net interest income (excluding trading) was up 9% year-over-year, with net interest margin expanding by 16 basis points [27] Company Strategy and Development Direction - The company is focused on executing its ROE rebuild strategies, with a medium-term target of 15% for BMO and 12% for U.S. Personal and Commercial Banking [23] - Recent organizational changes in U.S. Banking aim to enhance performance by integrating personal, commercial, and wealth management businesses [10] - The acquisition of Burgundy Asset Management is expected to expand BMO's wealth management capabilities [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while trade-related risks have eased, geopolitical challenges persist, and the Canadian economy is experiencing modest growth [8] - The U.S. economy remains resilient, supported by strong corporate earnings and consumer spending, which should aid growth in 2026 [9] - Management expressed confidence in achieving targets despite uncertainties in the economic environment, particularly in Canada [72] Other Important Information - The CET1 ratio remained strong at 13.5%, with share buybacks ongoing to return excess capital to shareholders [6][30] - The company is investing in digital and AI capabilities to enhance client services and operational efficiency [19] Q&A Session Summary Question: U.S. Loan and Revenue Growth Outlook - Management indicated that while there are macro factors affecting loan growth, they remain comfortable with their position and expect to grow at or above market rates [50][52] Question: Recovery on Performing Loans - Management noted that the recovery in performing loans is driven by improved macroeconomic forecasts and stabilization in portfolio quality, particularly in the U.S. [61][62] Question: Canadian Economic Outlook - Management described the Canadian economy as experiencing modest growth, with expectations of 1% to 1.5% growth in the latter half of the year [70][71] Question: Operating Leverage Expectations - Management confirmed their commitment to achieving positive operating leverage and efficiency improvements, aiming for a continued positive trend [100][101] Question: Credit Migration Speed - Management highlighted that improvements in credit migration are due to strong risk management practices and a favorable economic environment, particularly in the U.S. [102][105]