What Section 1071 means for banks
The Consumer Financial Protection Bureau’s final rule implementing Section 1071 of the Dodd-Frank Act has made waves in the banking industry since its announcement in late March. [Continue]
A case for raising the deposit insurance cap
In an April roundtable hosted by The Brookings Institution, Prasad Krishnamurthy, professor of law at the University of California, Berkeley, said the Federal Reserve should consider extending its deposit insurance cap far beyond what it is now. [Continue]
Oversized deposit spreads aren’t compensating for undersized volumes
Executives who focus single-mindedly on cost of funds have missed the exit ramp, and it does not bode well for their organizations. With some art and some science, banks can de-commoditize deposits by segmenting deposit offers in more robust and differentiated ways than those deployed decades ago. Improved sales processes — and training for frontline staff that has not been imperative since 2009 — can differentiate a bank and bring in profitable funding, though higher-priced, without the detrimental impact of repricing the entire book with across-the-board rate increases. [Continue]
What banks need to know following Kentucky mass shooting
The April 10 shooting that killed five employees at an Old National Bank branch in Louisville, Ky., shocked banks across the country and raised difficult yet necessary questions of how to recognize the signs of a potential shooter. [Continue]
Tech lessons from a financial crisis
It might be easy to say, “That was a big bank, and we’re community banks. We’re different.” And while that’s true, there are certainly some aspects of the SVB failure that apply to banking across the board. [Continue]
Focus groups are a valuable tool to assess products and more
Today, there is so much content online, and so many opinions circulating, that it’s difficult to cut through the noise. That’s why focus groups are more relevant than ever. [Continue]
Welcome to the ‘phygital’ world
Hybrid has become a key buzzword in the post-pandemic world as banks along with other businesses grapple with the right blend of in-office and remote work. Combine that with talent shortages, and meeting the needs of customers and employees has proved challenging. [Continue]
Striking the right balance in ticklers
I’ve seen my fair share of ticklers throughout my career. And when I say fair share, I mean tens of thousands. I worked for a company that had a tickler solution as part of a larger loan management system and helped community banks make the switch from their old system to the new system. [Continue]
Understanding deposit pricing stats
In times of volatility, it is critical to know how to interpret aggregated cost of funds data and correctly understand the pricing marketplace today. You may be familiar with Mark Twain’s opinion of statistics — “There are three kinds of lies: Lies, damned lies and statistics.” [Continue]
Is your core a cost center or a catalyst for growth?
In their efforts to win and maintain market share, many community bankers have recognized the need to invest in innovation. The problem is innovation efforts are often focused on front-end technologies, such as websites or mobile apps. Meanwhile, the back-end technologies, including legacy core banking systems, are left in place. [Continue]