What is the bank actually selling? Banks are selling a product at a different price.
In this episode, Mark unpacks the financial services industry — from how banks really make money to what drives their profitability. 💰
You’ll learn how banks operate by buying and selling money, why net interest margins matter so much, and how interest rates ripple through the UK housing market and broader economy. This episode helps you connect the dots between mortgages, margins, and market movements — and what they mean for your portfolio.
🎯 Key Takeaways:
Banks profit by managing the spread between deposit and lending rates.
Net Interest Margin (NIM) is a critical indicator of profitability.
Mortgage lending plays a central role in banking operations.
Rising interest rates can dampen loan demand and housing activity.
The UK economy directly influences banking sector performance.
Understanding how banks function helps identify sound investment opportunities.
📍Chapters:
00:00 – Understanding the Financial Services Industry
02:33 – The Mechanics of Banking: Buying and Selling Money
05:12 – The Role of Mortgages in Banking Profitability
07:52 – Economic Factors Influencing Loan Demand
11:40 – Navigating Investment Opportunities in Banking
12:10 – Disclaimer
#financial services, #banking, investment, #mortgages, interest rates, #profitability, #UK economy, #bank operations, #net interest margin, #housing market, #investor education
🎧 Listen on:Spotify | Apple Podcasts | YouTube
