BID Daily Newsletter Archives
Saving for retirement makes sense, so we remind bankers to tell your employees that 401(k) contribution limits in 2020 allow people to save $19,500/year vs. just $6,500/year in an IRA. Another thing that makes sense for community financial institutions (CFIs) to monitor closely is data privacy. It is quickly becoming a hot-button topic for social media networks, retailers, and financial institutions (FIs) alike. Indeed, the issues surrounding who controls consumer data really began to swell a little more than 3Ys ago, with the General Data Protection Regulation (GDPR) in the European Union, which went into effect in May 2018. It...
According to Pew, 18% of Americans admit to seeing a ghost and 29% say they have "felt in touch" with a person who has passed. Whatever you believe in connecting with people who have passed or from the past, today we shift your focus to the future. With all the focus on artificial intelligence (AI), it can be easy to overlook a far simpler but effective cousin: automation. For community financial institutions (CFIs) watching the rise of AI solutions at big banks, and worried about being left behind, much simpler automation can provide a way to improve processes and profits...
Spiders and the webs they spin are amazing. Spider silk is 5x stronger than the same weight of steel. It is shiny in order to attract insects. Many spiders replace their entire web every day, and spider silk transforms from liquid to solid thread as it leaves the body. As you ponder this, we direct your attention to another sticky topic, CECL.Congress has suspended CECL rule implementation for FNMA and FHLMC as the Department of the Treasury takes a look at its possible impact. Like other financial institutions, FNMA and FHLMC must follow the rules of CECL. Yet, if these...
The Bureau of Labor Statistics (BLS) indicates there are no formal requirements for becoming a life coach. That said, some of the best life coaches suggest the following to improve your life: 1) Focus on what's important; 2) Have less stuff; 3) Avoid worrying about matters that don't really matter; 4) Get organized; 5) Change gradually; and 6) Show compassion. While these are good, we have another tip to make your life as a banker easier.Portfolio-level analysis of Commercial Real Estate (CRE) loans can help community financial institutions (CFIs) better understand concentrations and how risky exposures might be in a...
Since you are reading the BID today, we thought you would be interested to know which countries read the most hours per week: India (10.7), Thailand (9.4) and China (8.0). The US came in at #24 with 5.7 hours. As you read further, you should also find a risk management study that we surfaced of interest. Not surprisingly, regulatory concerns among financial institutions (FIs) continue to mount. Some points of contention highlighted in a recent Wolters Kluwer study produce some things to think about.The latest survey includes responses from 704 banks and credit unions. The survey seeks to...
Since it is Valentine's Day, we thought you would be interested to know: over 50% of Americans celebrate this day, coughing up about $19.6B per year! Women spend about 19% of what men do or about $64 vs. $338.With that kind of spending, faster payments will make celebrating easier for those that procrastinate, to be sure. But, going "real-time" with payments has been an issue for banks. While the Fed will offer a real-time payments option in the future, in the form of "FedNow", other alternatives are emerging too. Here is an update. The Clearing House (TCH) is owned by...
Gallup reports 70% of decision-making is from emotions and only 30% is from logical considerations. While we think bankers skew more often to the 30%, the lightning speed of technology sometimes forces you to go more "with your gut." So, today we want to bring you up to speed on the latest use of technology. MasterCard has a new pilot -- letting customers store digital identities that don't contain personally identifiable information (PII) on their smartphones. This would be done with tokens, showing that the data has been verified by a reliable source. This idea in various forms is certainly...
Did you know that a Stanford study has found that the body has changed and that the average normal body temperature for someone is 97.5 degrees Fahrenheit vs. the accepted 98.6 degrees? Fever prevention protocols may be changing, if this becomes widely accepted. Today though, we talk about another kind of prevention -- employee fraud prevention. As businesses with tight-knit staff, community financial institutions (CFIs) find it especially upsetting when they discover that one of their employees is dishonest. Like any other business though, CFIs need to take practical steps to prevent employee crime. As a term, embezzlement happens when...
Did you know that according to Gallup, those organizations which have an "engaged culture" perform above and beyond their cohorts by 147% in EPS? If you are thinking of M&A, this is something to keep in mind, to be sure.If you are contemplating M&A, we thought you should also know that bank mergers and acquisitions dropped off sharply in Q4 2019, as financial institutions took a breather from the hectic Q3. While the total number of deals for the year reached 266 vs. 257 in 2018 according to S&P Global Market Intelligence, that is mainly thanks to the jump in...
We just read about a study with mice and flies that showed how a naturally occurring protein, Sestrin, produces the benefits of exercise. When this protein was maxed out in flies, they were capable of more activity, even without exercise. Where this goes, we don't know. But, the idea is to help geriatric patients or those with mobility issues. Could this even mean exercise may be a thing of the past? Exercising your lending to small businesses is definitely not a thing of the past, and today we continue our discussion on this topic from our article last week, ...
To blow your mind this morning, we note that scientists say the average cumulus cloud floating along in the air actually weighs about 1.1mm lbs! It seems along with the fluffy floating, they certainly carry a lot of water too. Most people don't even think about the weight of clouds, just like very few people think very much about banking using their smartwatch.Smartwatch banking used to be only for the most tech-savvy financial institutions. But now, it can be another nifty tool for community financial institutions (CFIs) to offer, particularly to millennials and Gen Zers.A record 45mm smartwatches were shipped...
Geckos are interesting critters. They can turn the stickiness of their feet on and off whenever they please. But, no matter how sticky they are, their feet cannot stick to Teflon. While you strategize trying this out as an experiment, perhaps, we bring up another strategy closer to bankers around technology.Developing a successful technology strategy can be difficult for any enterprise and especially challenging for community financial institutions (CFIs). So, you may want to check out the most recent 2019 Bank Director's Tech Survey. It offers a chance to see how you stack up against your...
Every month an average of 543,000 new businesses are started, according to Yahoo. That is a huge number, but it is also worth noting that sadly only a fraction of those may survive. As community financial institutions (CFIs) know, lending to small businesses can be tricky, especially if they are new ones.In such cases, it is important to use both loan officers and underwriters who have extensive expertise on which small businesses will have enough cash flow, especially during economic downturns.This is especially true for SBA and USDA loans, which come with complex loan documentation and underwriting requirements. More and...
It has been said that each American will eat about 6,000 pizza slices throughout their life. We love pizza, so that number seems low. That is also good news for pizzerias and the community financial institutions (CFIs) that serve them, as this love will keep many of these businesses profitable. Speaking of profitable, our focus is on customer profitability today.When it comes to profitability, the emphasis is often on new deals and new clients. This makes sense in one way, especially for relationship managers/loan officers. However, overall profitability is a multi-dimensional process, and existing customers are eager to do more...
Do you like butter? You might not think much about it, one way or another. But, if you did, you might be interested to note that someone wrote a 368-page book on it, appropriately titled, Butter. The questions we answer are a bit more relevant than that one. So, we hope you find some good insight in today's publication.Q: What are some strategies to achieve smarter fraud detection? A: Artificial intelligence (AI) is becoming significantly more important for community financial institutions (CFIs) in reducing fraud. One of AI's main use-cases is anomaly detection or trolling for unusual behavior that smacks...
Are you a cord-hoarder? You know what we are talking about - those people who can't seem to get rid of old electronics' cords. Many of us struggle with this, maybe longing for a simpler electronic time. No matter what though, you probably want to recycle those cords soon, if you haven't already.In the world of community financial institutions (CFIs), some employees may be longing to cut the cord to their manager perhaps. This is usually because of either micromanaging or undermanaging. We look at three steps to find an effective point between the two.Undermanagers tend to avoid
The state of VT is sparsely populated in certain areas, which is one reason pundits say led to issues around big renewable energy goals. The state had so much wind and solar energy going through the low-capacity transmission lines at the same time, that there was congestion. This meant the energy was not available when needed. A new technology may help by storing renewable energy until there is a lull in the transmission lines. Technology can be pretty amazing, but for community financial institutions (CFIs), it can cause sleepless nights too. This is especially true when you consider the biggest banks have big tech budgets
Early last year, a story surfaced of a trio of thieves that entered a video camera store outside of Detroit. The problem was the store had cameras inside and out running pretty much 24x7. When the employees weren't looking, these thieves stole a charger, which was all caught on camera. Needless to say, they were also caught. Clearly, some thieves are pretty stupid, while others aren't. Faster payments could potentially provide more opportunity for thieves, so community financial institutions (CFIs) need to be on the lookout.Faster payments are growing in popularity among US consumers and financial institutions. To put things
Did you know that there are now 3.2B social media users worldwide? Almost 91% of millennials are social media users along with 78% of Gen X. While Gen Z wasn't mentioned in this study, they are surely up there in percentages as well.Of course, social media also presents a myriad of challenges for community financial institutions (CFIs). Regulatory concerns and limited staff are only a couple of them. Yet, as your customer demographics shift, it is clearly important to stay involved in social media. Today, we'll explore why you should consider expanding the number of employees who represent your institution
Whistle Labs recently launched a wearable device for dogs that manages the animal's health much like the Apple Watch does for humans. It is amazing what products can be developed with a big enough market and a keen strategy. Another type of strategy, risk-based loan pricing, is more for bankers though.Community banks and smaller credit unions currently have 9% of all small-business loans under $100K. A risk-based pricing strategy can give all of these community financial institutions (CFIs) a chance to improve market share without increasing risk.The Fed's small business credit survey indicates that 77% of small-business loan applicants had
The DMV has a huge database. Think about it--anyone who has ever needed any kind of service from the DMV has been captured. This is then modified each time people move or have a moving violation. Now, the DMV may soon have to expand their data warehouse because digital ID cards could be coming.Digital licenses are quickly gaining traction and could significantly impact the way that the banking industry verifies an individual's identity. Electronic identification cards recently rolled out in CO and mobile license programs are in the works within states, such as IA and OK, in addition to 10
From an early age, kids seem reluctant to share and the reason may have been found in a study by the University of Waterloo. The results showed that children as young as 3Ys old have a concept of ownership, so they don't feel the need to give up things that are owned by them.Parents know that teaching kids is all about teamwork and sharing though, and the same holds true in banking. Working together with others is almost always more productive than trying to handle challenges on your own. According to the findings of a recent survey from Harvard Business
If you are a Netflix subscriber, you may not be surprised to find the top 3 shows in 2019 were: Stranger Things, Lucifer and Orange is the New Black. If you haven't watched them, the good news is that you can binge-watch any of these to catch up.Speaking of Netflix, financial institutions (FIs) are taking a page from Netflix's playbook these days, by analyzing data from individual customers to provide them with extremely tailored offerings. These include banking services to discounts at retailers. Moreover, this trend is one that is only expected to pick up speed. Much like the way
As you gear up to capture more customers this year, you might find it interesting that JD Power's 2019 US Retail Banking Satisfaction Survey finds only 4% of customers switched banks last year. One reason for low switch rates could be that more customers are fully embedded in their banks and using online and mobile channels heavily too. As more customers conduct financial transactions via mobile though, bankers know that cyber criminals have flocked in too. This makes it increasingly difficult for bank customers to trust their mobile interactions. According to research released by TransUnion's fraud prevention unit, iovation, suspected
It has been said that 80% of the jobs we will be doing in 2040 aren't even around today. That is just crazy when you think about it, as is the growing role of artificial intelligence (AI) in hiring for these types of jobs. Technology has many benefits to be sure, but the incredible boom is also causing cybersecurity problems.Not surprisingly, a recent survey finds an overwhelming number of community bank CEOs (96%) cited cybersecurity risk as a very important or important risk factor to their bank. Given this being top of mind for so many execs, here are three
Girl Scout cookie season is soon upon us and a new flavor is joining the fan favorites of Thin Mints, Tagalongs and Samoas, Lemon-Ups. This may well test many New Year's Resolutions, but these cookie sales also build business skills for the kids. Who knows, perhaps these early stage entrepreneurs will even be new small business customers for many financial institutions in the future. This is where we turn our attention today.Most community financial institutions (CFIs) have ramped up their focus on small businesses, but relatively few have seen the growth in this segment that they'd like. Understanding why is
Did you know that Russia is the largest country in the world by land mass, coming in at a whopping 17mm square kilometers, according to Statista? Canada is second with 9.985mm, then the US with 9.83k and China with 9.6k. As you think about each community in these big countries and how they interact with each other, we shift your attention to the new Community Reinvestment Act (CRA) proposal.The FDIC and OCC have proposed changes to CRA regulations intended to both expand the ways banks can receive credit and reduce their regulatory burden. Of note, the
Generation Z (ages 7-22Ys) orders for food delivery are the fastest growing, according to NPD Group research. This group is even finding ways to deliver food to school so they must be hungry indeed (although many schools have banned it). It looks like customers are getting younger by the day--something to think about when it comes to branches.According to published reports, costs associated with branch networks are in the range of $600k to $2mm per year, depending on size, location and other factors. This is a hefty chunk of change, despite economies of scale brought about by digitalization and consolidation.
Have you heard? The Hershey's Co. known for its chocolate will be saying goodbye to its three 26-ft long Kissmobiles. These vehicles were each made from three giant-sized chocolate kiss candies and drove around the country since 1997. It is often hard to say goodbye, but, that is what bankers will be doing soon with LIBOR too. While Secured Overnight Financing Rate (SOFR) is the designated replacement for the LIBOR rate, it faced its first test recently. The results raised new concerns about its usage and implementation. Community financial institutions (CFIs), working diligently on preparations for the planned phase out
Mobile wallets are being used more these days. The most popular, in-store digital payment methods, according to McKinsey were: Apple Pay (40%); Google Pay (20%) and Samsung Pay (16%). Not surprising, perhaps, but it is nonetheless incredible to see that these three captured more than three-fourths of the payments in store.Also, not surprising that more community financial institutions (CFIs) are now joining the mobile wallet phenomenon, as more and more customers--particularly millennials and Gen Zers--are demanding the service.In 2019, over 36% of smartphone users
Strange things have often been sighted in Las Vegas. But, did you hear about the pigeons that were sporting cowboy hats? This happened for a week in mid-December. No one seems to know why or who. One with a red hat was named Cluck Norris and another with a pink hat became Coo-Lamity Jane. I guess Las Vegas is still entertaining the masses in unique ways these days!After you finish looking for the video footage of these cowboy pigeons, we bring your attention to a topic that is more realistic--CECL and the latest news on the timing.The Financial Accounting Standards
Science and weather can be interesting. For instance, did you know that mild weather in the fall can mean we see bigger spiders inside our houses? Or that the chilliest temperature recorded was -89.2 degrees Celsius (-128.56 degrees Fahrenheit)? Or even that raindrops can fall at more than 30km/hr?While you ponder these facts, we wanted to touch on the topic of severe weather and real estate today. Whatever your thoughts on climate change, severe weather patterns are affecting the real estate market. Flood prone communities are at risk of losing property value, and down the road, mortgage lenders
Did you know that the idea of using the iris pattern of your eye for identification was first brought up in 1936? Frank Burch, the ophthalmologist responsible for this idea, would likely be surprised by how long it took to actually put his idea to use. Yet, today people are still incredibly skeptical when it comes to security measures that involve storing their fingerprints or irises in any sort of database. Despite such concerns, biometric payments are expected to exceed $1.67T per year by 2023. With this level of growth, it is important to know what this means
We looked up the origins of the word, "question" to find this: "Utterance meant to elicit an answer or discussion." Today we have a few of those, and so we provide some points of discussion to start your day. Q: Now that California has legalized public banking, what could the potential impact be if the movement continues to grow?A: While not a new concept, momentum has been growing across the US for public banks--owned by the people of a state, city, community or country. Overall, it should be an interesting development to follow. While some community financial institutions (CFIs) may
It is said that internal surveys typically get about a 35% response rate vs. about 10% or so for external surveys. Experts say surveys should take
A University of Scranton study finds only 8% of people attains their New Year's resolutions. So, as you slowly get back to work after the holidays and ponder that data point, we take a moment to recap major events from last year, as we look forward to what bankers can expect this year.Market Rates: Since loans are a huge piece of profitability at community financial institutions, we focus there first. Last year was a decent one for loan opportunity with a base market rate of about 2.70% and a corresponding loan rate of 5.20% to 5.70% or so. This year
While the BID is on vacation for the holidays, we thought we would share with you the most popular articles of 2019. We hope this gives you a chance to catch up on or savor these "fan favorite" articles. Happy reading and Happy Holidays!Original Published Date: Mar 22, 2019Help Transition Business Owners To RetirementSpeaking of preparing for things, more and more baby boomers are speeding towards retirement. That means more and more businesses will need to be prepared to...Read More
Be sure to tell your customer-facing teams that if they want to be remembered, it is important to smile. Research has found that doing so when you meet someone helps them remember you later. As you ramp up your smiling today, you might also be pleased to know that helping customers save using apps can ramp up your deposit accounts. You can build your own app, or work with a company that already has one and meets your vendor and cyber risk management requirements, perhaps. One way to begin is for your bank to act as a behind-the-scenes custodial financial
University of Oregon researchers found that when people suppressed their emotions they were ranked by others as less likable, less extroverted and less agreeable than people who expressed their emotions. Think about that at work today as you interact with customers and colleagues. As you think about how much people need to see your face register emotions, you might also think about how much small business owners need your help in other ways too. For starters, an established small business typically has traditional banking needs while a faster growing one may have quite a different set.To get the ball rolling,
Pew Research finds about 27% of people have not read a book (in print, in part, in whole, audibly, or electronically) in the past year. It seems though that the more money you make, the more you read, as the percentages go up for that group. No matter what you have or have not read recently, it makes sense to do so, when it comes to cyber security. There are so many threats now, and hackers continue to evolve. Some protections still work well, like multi-factor authentication (MFA), but they are not infallible. Today we want to share
The US population will end this year at about 329mm. Of note, the age groups are: 74Ys+ (7%), 55 to 73Ys (22%), 39 to 54Ys (20%), 23 to 38Ys (23%) and
A survey by Deloitte of retail holiday shopping finds the top sources for shopping research are: online retailers (65%), web search engines (58%), retail stores (52%) and retailer websites or mobile apps (40%). Things have changed over the years, but this gives bankers decent insight into some of the trends perhaps.As you think about your own holiday spending this year, we note that competition for your dollars is probably very high. Along the same lines, competition for bank customers is also very high. Certainly, competing for younger customers can be a challenge for financial institutions of all sizes. As people
Bloomberg reports the top US corporate lobbyists this year when it comes to spending are: Amazon ($12.4mm), Facebook ($12.3mm), Northrop Grumman ($11.0mm), United Technologies ($10.5mm), and Boeing ($10.4mm). No matter what you think about lobbying, it is an embedded part of US politics. Since we don't want to get everyone riled up about politics this morning, let's switch now to something closer to home like workplace team building. You don't have to look far to find someone who has been pushed to participate in some sort of workplace team building activity, like the human knot or egg drop. Team building
Depending on where you live and how you get to work, you might not think about how many people ride Amtrak. Last year, it had 32mm riders and while that produced revenue of $3.2B, it still lost about $171mm. Amtrak has needed federal subsidies to keep going every year since it was created almost 50Ys ago (1971).No matter how you travel through the industry, you should know that while online searches often send people to fintechs and digital-only platforms, the data shows people still like dealing with a real person in many ways. Today we offer up some ways your
If you are trying to build deposits, you might want to alert your customers about a new survey from Fidelity Investments. It found 38% of baby boomers are too heavily invested in stocks. Good luck here, and let's hope some customers make the move to you.As you think about this, you might also want to think about the best way to onboard new customers too. After all, the onboarding of new online or mobile customers is often when the most fraud happens, so managing that risk is critical. As a result, the industry is increasingly looking to mitigate risk in
Maybe it is the fact that about 50% of baby boomers have no retirement savings or maybe it is something else, but a TD Ameritrade survey finds 66% of Americans in their 60s plan to keep working in retirement. At least that is some good news for community financial institutions (CFIs) seeking to keep experienced employees.That said, another survey by Crowe looked at how well financial institutions are attracting and retaining younger workers, and here there are definitely some issues. It also suggests big challenges could arise if bankers aren't careful to take action now.In the survey, a
Chapman University research finds the top things Americans are afraid of include: corrupt government officials (74%), pollution of oceans, rivers and lakes (62%); pollution of drinking water (61%); not having enough money for the future (57%) and loved ones becoming seriously ill (57%). No matter your fears, one that you see in banking is certainly financial technology firms (fintechs). The new fast-track bank charters for fintechs just got pushed into the slow lane by a federal judge, whose ruling provides breathing room to community banks worried about new fintechs gaining a competitive advantage. The OCC had established a new fast-track
HGTV research finds some of the things people with the cleanest houses always do include: making the bed before leaving the house, not wearing shoes in the house, opening mail every day and not leaving a room empty handed. No matter how clean your house is, some bankers say the regulators have taken steps to clean up capital ratios with the new community bank leverage ratio (CBLR). In releasing the final rule, the federal regulators said 85% of community banks should be able to qualify for the relaxed rules. What that means is that almost any community bank that fails
The Daily Mail reports the list of things guests notice when visiting your home include: how clean, organized and tidy it is; whether your walls are bright or neutral; how your furniture is arranged (people will often mentally rearrange it); and whether you have natural light (good) or artificial (bad). No matter what you notice, know that it is important for your security team to notice that ATM skimming is rampant. We point this out because some bankers have shifted and are now taking a more collaborative approach to this frustrating issue. In TX, there is a group of bankers
The University of Missouri reports studies show the typical person each day spends 70% to 80% of their waking hours doing some form of communication. These include: listening (45%), speaking (30%), reading (16%) and writing (9%). Whether you are chatting with someone or not, you know that in the digital world chatbots are gaining traction.Chatbots have been around for a while, but they have always fallen short when it comes to the ability to have natural conversations with people. Until now, that is. Facebook's artificial intelligence (AI) researchers have been aggressively working on algorithms that increase chatbots ability to respond
For those seeking to be more successful, here are a few things Entrepreneur surfaced that the most successful people do, but most others do not: they consistently read, they take advantage of introductions to others, and they do the little things in relationships that have an impact (remember names, follow up when they say they will do so, send a quick text to someone, etc.).Success is difficult to achieve and harder to hold onto, which is why we discuss practical approaches to competition today. We look at a few community financial institutions (CFIs) in FL since many have been hit
Experts will tell you young kids will typically ask 300 questions per day. Since we are dealing with adult readers here though, we only tackle three but with a bit more depth.Q: I know cybersecurity is incredibly important, but it can be very hard to keep up. What are some recent developments that could help me stay up-to-date? A: Cybersecurity is constantly evolving; banks would be remiss to take a piecemeal approach to addressing rising threats. Still, we call your attention to some rising threats, including a recent FBI warning about ways hackers are circumventing multi-factor authentication. "Living off the
Inc. reports some of the easiest ways to get people to like you more include: asking questions, talking more, giving your time for free, listening better and truly caring. Yet, the risk of doing something to upset people is always there and so are risks in banking.For instance, financial institutions looking to manage interest rate risk (IRR) have to think about many different things that impact it. One way to manage IRR is with an interest rate collar. An interest rate collar manages the exposure of interest rate movements and provides you with a certainty of
Forbes research finds there are things you should not say at work, if you want a great career. These include: "It's not fair"; "This is the way it has always been done"; "No problem"; "I am going to ask a stupid question" and "This will only take a minute." While some things shouldn't be said at work, others are important to share with all employees. One instance of this is when it comes to phishing scams and even stolen fingerprints; there is no shortage of tactics criminals employ. If you think you have seen it all though, think again. Criminals
Business Insider research finds people are "judgy" and will decide things about you in just a few seconds. These can include: judging how much they should trust you after only just meeting you, your socioeconomic status just by looking at you, and how smart they think you are after just meeting you. We bring this up because many community financial institutions (CFIs) need to periodically judge how much capital is needed to grow. Getting it can be challenging, depending on the market environment and opportunity. One source with plenty of money to invest is private equity markets, but getting them
Scientific American reported on some of the things that people don't know about themselves. For example, the way you view yourself is distorted, but you don't realize it. Also, your motives are often a mystery to you, and you often think you are better at something than you are. As you think about that this morning, we give you something else to think about too.Companies like Amazon, Square and PayPal have rolled out a variety of merchant services, but the overall effect on community financial institutions is not totally apparent yet. That may soon change, as a new initiative from
Inc. research finds the top things detail oriented people will notice are: what people are wearing, body language, misspelled words/improper grammar, the big picture and patterns that connect little things. Are you detail oriented?Details matter in banking all over the place, so for those who might get notification of interest to buy your bank in the future (or if you are planning to send one out), then care should be taken.Certainly, you must take any offer seriously, because you have a fiduciary responsibility to your shareholders to determine in good faith if the would-be buyer would bring more value to
Entrepreneur ranked surprising things successful people like: helping those who need and deserve it, sleeping in their own beds, mundane hobbies, working their tails off, and quiet time. Surprise!In community banking, another successful thing to do is to always try to be prepared for unexpected events. For example, when calculating interest rates, there is always an assumed "plus" in front of any percentage. After all, that is how nearly all financial models work and things can get really messy when that is not the case. That said, you may find regulators eventually asking your team if you have even considered
The top ranked activities to do in the US according to TripAdvisor travelers are: Lincoln Memorial (DC), Horseshoe Casino (MD), Sugarlands Distilling Co (TN), Chihuly Garden and Glass (WA) and Louisville Mega Cavern (KY). It's time to get active.Bankers actively think about many things in their business model. These include how to make better use of data, filling in gaps with the data needed, and most importantly, analyzing all this information to determine the best courses of action. Data analytics is not only becoming more important to financial institutions of all sizes, but will be necessary to help them with
There are 61 national parks in the US across 29 states plus the territories of American Samoa and the US Virgin Islands. The first one was Yellowstone (1872), followed by Mackinac National Park (1875 but decommissioned in 1895), then Rock Creek Park, Sequoia and Yosemite (1890). Community banks operating nationally can also help their customers expand their business beyond US borders. One way to do this perhaps is to consider a relationship with the Export-Import Bank of the US (EXIM). As a government agency, EXIM supports American jobs by facilitating the export of American-made products. The export credit
The top ranked US national park destinations according to TripAdvisor travelers are: Mount Rushmore (SD), Alcatraz Island (CA), Red Rock Canyon (NV), Glacier Bay (AK) and Great Smoky Mountains (NC/TN).No matter where you travel, if you're like most community banks, your assets are < $10B. That is well below the $250B level where regulators look extremely closely at stress testing. But, the practice should still be an important element of your risk management program.A well-designed series of stress tests can help you identify your institution's vulnerabilities and figure out how you'll manage its risks. While we know that stress testing
A Robert Half survey finds 67% of technology leaders say they believe they could log out and not check email, if executive management told them to stop. Interestingly, only 41% of their employees said these leaders would follow that sort of mandate.As you think about how you might handle such a rule, know that there are plenty of rules around small business banking. Even so, such customers are a mainstay for community financial institutions, so we provide you with some things to think about with this updated snapshot of small businesses. According to the SBA, at latest count
People check their email all the time. For example, did you know research by One Poll finds 20% of people say they have woken up in the middle of the night to check their work email? Also, about 50% of people say they read their work email after waking up in the morning but while still in bed.No matter when you check your email, if you see one from the boss saying the bank needs to raise capital, know that when you do so, you have more flexibility.Community banks can raise capital by utilizing Regulation A (Reg A), which exempts
Bankers get a ton of email every day, which is why we found research from the University of Sussex on this interesting. It finds the four primary reasons employees will log in remotely to answer work emails are: showing concern for a coworker, getting work done effectively, preserving their own well-being, or having control over their work.Speaking of work, the Department of Labor (DOL) in September announced a final rule to make about 1.3mm workers eligible for overtime pay. The new rules update existing thresholds last touched in 2004 and go into effect Jan 1.Here's a sampling of
People like to eat out. A survey by LendEDU finds that people ages 22 to 37Ys spend about $163/month on eating out vs. only about half that on new clothes ($82). No matter how you spend your money, suffice it to say that big banks have spent money on and are now rolling out their CECL provisions. We thought you might be interested in the early data. It seems many large banks are predicting substantial increases to their loan loss reserves under the new methodology, but of course these banks also have a lot more consumer loans too. So, this
Scientists have developed a structure that operates similar to an octopus. It senses, computes and responds without direct instruction from a central processor. This stretchable material senses touch and strain and could be used for things like soft robotics to prosthetic devices.As with octopus tentacles, customers in rural areas all around the US are already familiar with the reach of mobile services, and nearly 90% own smartphones. But, how do urban and suburban customers interact with remote services? Community bankers constantly monitor these things, as they formulate the mobile portions of their businesses.Banking deserts have spread throughout rural America. In
A study by a university in Singapore finds children who are told lies by their parents tend to lie more as adults. They were also found to be more disruptive, experience guilt and shame, be more selfish and manipulative. Looks like telling the truth is still good.The truth about recession has ramped up as well recently. While talk of a pending recession is nothing new and has been circulating among economists for the past few years, now the biggest banks are talking. Some of the largest banks are now predicting that a recession is likely to hit within the next
Scientific researchers have developed a small nanolaser that is capable of functioning inside living tissue. The laser could be used to sense disease biomarkers or treat neurological disorders deep within the brain such as epilepsy.As your team maintains a laser focus on compliance, we offer some thoughts around best practices to better ensure your bank is not only following regulations--but also minimizing risk.First, conducting compliance audits during times when there will be no other reviews, including examinations from bank regulators, can not only prepare you, but also reduce team stress. How often audits are conducted depends on the risk profile
Like the kink you can get in a garden hose, Alzheimer's researchers have found an amino acid that pushes out water as people age and forms a sort of molecular zipper that can get a kink. While scientists don't know how to fix it yet, knowing this could lead to breakthroughs. Farmers also use a lot of water and are good customers of community banks nationwide. This customer base has also taken on near-record levels of debt in recent years. As commodity prices and trade wars put them under additional pressure, bankers are looking at options and closely monitoring things.
Scientists have discovered that drugs like aspirin may lessen the adverse effects of ambient particle matter from air pollution on lung function by as much as 50%. Now you know.Other things to know that we have been asked by customers:Q: My bank is thinking about switching to a national charter from a state one. What are some of the top considerations?A: When banks talk about switching charters, it's often from federal to state. But, for certain banks, there may be valid reasons to consider a switch to a national charter. Banks considering such a change are typically larger and may
For the first time in 160Ys, the number of people in the average US household has increased from 2.58 to 2.63. Of course, back in the 1800s that number used to be closer to 5.79. In short, the population is growing slightly faster in the number of households.No matter how many people live in your household, at your bank people tend to drift in and out all day long. When doing so, we note that people hate waiting in line and may think they are waiting longer than they are. Indeed, people consistently overestimate how much time they actually spend