A major leap for community banks has been receiving the documents electronically. Dual monitors allow a speedy credit analyst to have the tax return open on one screen, the spreading system on the other, and enter a tax return within minutes — saving the “look down, look up” movements of transferring data from paper to computer. But a step further is not to manually enter a tax return at all. [Continue]
Your bank probably uses at least one — if not many — SaaS products. Software-as-a-Service providers have exploded over the past several years and come in every variety imaginable, from e-signature platforms to many core accounting providers. The vendor assumes the responsibility of hosting the product in these subscription-based, web-based models. What about Banking-as-a-Service? [Continue]
Gone are the days of the homogenous customer base. A community bank’s reach may span multiple states, varying customer demographics, a wide range of business needs, and an ever-changing competitive environment with near-infinite options of products and services. The 39 branches of Miles City-based Stockman Bank of Montana are spread across the wide expanse of the state. The $5.4 billion bank includes customers located in larger cities and some in very rural locations, sometimes up to 100 miles from the nearest branch. The bank serves a mix of commercial and agricultural customers, in addition to its consumer population. [Continue]
Banking is a unique industry in that “everyone needs it,” yet there is a wide range of how customers interact with financial institutions. Digital solutions are the bare minimum expectation; building bank loyalty will come from becoming a trusted source for all banking needs — including financial literacy. [Continue]
Community banks can often face challenges internally when rolling out new products and services. This can include everything from the logistics of consistent training for employees across the branches and internal willingness to accept change. [Continue]
It’s that time of year. Soon your loan customers will be compiling their year-end financial statements and, if their loan agreements dictate, providing copies to your bank for review. This year, like last, might include some extra scrutiny. PPP money combined with a “not quite back to normal” may make for some financial statements that don’t align with your borrowers’ pre-pandemic financials. Are your credit analysts prepared to assess the borrowers’ financial health, given these considerations? [Continue]
The Paycheck Protection Program included guidance from the SBA to prioritize loans to businesses owned by socially and economically disadvantaged individuals. Yet an October 2021 research paper, published by a group of New York University professors, found a disparity in the approval of PPP loans to Black-owned businesses. These differences in approval rates are not explained by factors like pre-existing bank relationships or applicant behavior. The paper’s authors suggest that preference-based discrimination occurs — and automation can make lending more equitable. [Continue]
There are age-old questions that banks must ask when considering their loan portfolios. What types of loans do we want to originate? What should our portfolio mix be? What is our risk tolerance? The answers shouldn’t be static: Rather, they need to reflect an ongoing comparison of the loan portfolio to the bank’s overall goals, along with an evaluation of changes within the market and communities being served. [Continue]
A personal touch has always been the name of the game — and a competitive advantage — for community banks. Yet, it can also feel that personalization has to be sacrificed in the name of growth. A personalized experience aligns perfectly with community banking, but how can banks collect the information and deliver this type of result across thousands of customers and multiple channels? [Continue]
We’ve all heard of “company branding” but what does that really mean for community banks? In a highly competitive environment, it’s about more than “we’re here to serve our communities.” It’s about setting your bank apart: What makes you unique? What are your bank’s values? How do you meet your overall mission? [Continue]