Editor’s Picks

Pandemic raises stakes on debit card issue

The 10th anniversary of the Dodd-Frank Act came in the midst of the pandemic, when debit card usage was surging. The Durbin Amendment to Dodd-Frank requires card issuers to enable cards to operate on at least two unaffiliated debit networks. Sen. Richard Durbin, (D-Ill.) recently wrote to the Federal Reserve about his concern that the largest card issuers are ignoring the rule at a time when card usage is skyrocketing, resulting in higher fees for merchants and, therefore, consumers. [Continue]

Fintechs, banks work to find common ground on managing risk

A community bank’s identity is intrinsic to its ability to connect with its customers, and meet them where they’re at. This looks different behind a screen and six feet apart. As a result, bankers are learning to partner with fintechs that have a common culture, and grapple with the oxymoronic relationship between fintech innovation and risk-averse banking. [Continue]

Regulators expect trouble to make landfall for banks, eventually

The conditions at banks are strong right now, reports James LaPierre, regional director of the FDIC’s Kansas City office. But 2021 will likely bring the industry some troubles, he predicted. Preparing a bank for the fallout of this pandemic is “like preparing for a hurricane,” LaPierre said. Bankers are doing a lot of “watchful waiting.” … Read more

Digital marketing meets the needs of the moment

Fintel Connect is a Vancouver-based digital marketing firm that works with U.S. banks. Nicky Senyard, founder and CEO, talked with BankBeat about how the pandemic has forced banks to find new ways to reach customers. [Continue]

Consensus around PPP’s success

Democrats and Republicans unsurprisingly have different takes on the success of the Paycheck Protection Program. Opposing political parties routinely take shots at one another; weeks before a presidential election, the partisanship is especially acute. With respect to PPP, however, small business advocates should agree that the program provided crucial support very quickly, with safeguards against fraud that made PPP as effective as any massive government grant program can realistically be. [Continue]

Lessons learned from Capital One’s data breach

When an organization is the victim of a cybersecurity breach, the immediate concern is the compromised data. The damage to brand reputation, potential lawsuits, regulatory fines and stringent compliance oversight are sure to follow — carrying a hefty price tag — all of which is a sober reminder that the breach itself is only the beginning of a long road ahead. [Continue]

Turn PPP borrowers into core customers

Thousands of lenders across the country have loaned more than $230 billion to small businesses through the Paycheck Protection Program. While many banks focused on serving existing customers, perhaps equally as many attracted new customers. If your bank has acquired new customers through PPP, now is the time to solidify these relationships. [Continue]

The value of the marketing change-up

Marketing in the middle of a global pandemic and the resulting economic turmoil isn’t easy. There’s a fine line to walk between continuing to put your message in front of customers and not seem like you’re trying to profit from dual crises. Use of social media to spread reassurances was a key theme of the earlier stages of the pandemic, with many banks opting to focus on messages of unity and togetherness. [Continue]

Workforce under stress

As the COVID-19 pandemic pushed the United States to a crisis point this spring, leaders at banks worked to figure out what was next for their businesses and their staff. Balancing the bottom line with staffing needs has required collaboration and breaking teams out of silos — from a safe distance — while also relying on HR staff’s already established relationships inside the bank. [Continue]

KC Fed’s George supports recessionary countermeasures

Since the beginning of her tenure as president and CEO of the Federal Reserve Bank of Kansas City in 2011, Esther George has proven herself “hawkish” as a monetary policymaker. In 2019, George voted against all three Fed Funds rate reductions, saying last September that sluggish economic expansion wasn’t concerning enough to warrant accommodation given historically low unemployment and stable inflation. [Continue]