The police across the country not only protect us all as citizens, but they also do some pretty nice things above and beyond the call of duty, from time to time. We loved hearing the story about a 4Y old little girl whose family had just moved into a new house in CO. The family went to a community event and at that event the young girl approached a police officer. She told the officer she was worried there could be monsters in the new house and she asked the officer to come and check to be sure. The police...
While the fog was still trying to lift in San Francisco, the 2nd day of the Executive Management Road Tour kicked off. Finance and risk were the first topics on the agenda. Here we discussed the results of a PCBB survey of community bank CFOs and Risk Management Officers that brought to light the main concerns and areas of strategic focus. The top four concerns for CFOs were 1) new technology 2) required compliance 3) acquiring new customers and 4) remaining competitive. Showing proactive planning for the latter two concerns, many bankers in the room raised their hands when asked...
Today and tomorrow, we bring you some reflections and insights from our Executive Management Road Tour held in San Francisco, co-sponsored by a leading accounting firm, RSM. This year we decided to bring in another market-leader in their industry, RSM Accounting Firm as a co-sponsor, to share their expertise as well. The theme of the conference was overcoming today's challenges and capitalizing on tomorrow's opportunities. Our 17th annual community banking event brought in nearby bankers from CA, WA, AZ, CO and NV. It also brought in bankers from as far away as AK, ND, NE, AL, TX, IA,...
Google has reportedly reached yet another milestone in its digital dominance. It has reportedly found that its artificial intelligence (AI) robots are now more accurate at identifying and blocking extremist videos online than humans. Its AI identified 75% of offensive videos before users reported them. That is amazing, but it also makes you wonder where all of this digital expansion and customization is ultimately heading perhaps. On the topic of more quickly knowing things about customers who interact with your bank perhaps, technology is making leaps and bounds there too. After all, it is no surprise that brochures and print ads...
Identity theft is ugly. In fact, Javelin Strategy & Research finds in their 2017 Identity Fraud Survey that there were 15.4mm US fraud victims alone, resulting in $16B in losses. Meanwhile, card not present fraud jumped 40% over the prior year. This isn't surprising when you consider yet another survey by OnePoll. It found 71% of respondents write down their user names and passwords, 52% know at least one other person's PIN, 40% say at least 1 person knows their user name and password, 25% have never changed their PIN and 10% say they have given a bank card and...
Statistics show the IRS audited about 0.70% of returns filed for the year of 2016. Of course, that is the average and the percentages begin to soar the more you make to almost 20% at the highest compensation levels. For its part, PwC says the purpose of a financial audit for a company is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organization at a given date. Among things auditors do not do is they do not check every figure in the financial report; judge...
Since bankers are in the money business, you may find it interesting that researchers at Utah State University found students who completed a basic financial education course were more responsible with their money. After just one course, this group outperformed those who did not take the course by having more self-control and an improved risk tolerance than those who did not take the course. Now you can brag about how much of an impact being a banker can have on improving society as a whole! As with having financial savvy, understanding more about the world of cybersecurity is also important these...
Prevention highlights some key benefits people can get from walking just 30 minutes per day. They include such things as: a better mood, improved creativity, increased metabolism, a 20% to 40% reduced chance of stroke, a 30% lower risk of cardiovascular disease, fewer varicose veins as you age, a better digestive system and better focus on goals. We will be back to finish this discussion in a moment, but first we are heading out for a 30 minute walk around the block. Ahh...back at the desk again. As seen above, the value of walking is clear but what about the value...
Did you see the news that researchers now believe there could be a whole lot of water sitting under the surface of the dry, old, crusty moon? It seems researchers from Brown University have been able to detect water molecules using pictures of the moon's surface and reflecting light somehow. The bottom line is that if this is true, we could live there, have oxygen to breathe, water to drink, water for growing food and hydrogen for creating rocket fuel to come and go. It sure is interesting how things around us can change so quickly just by taking a...
Bankers know the value of the data they hold, but one key issue revolves around the best way to clean and access it all. Consider research from International Data Corporation (IDC) that projects worldwide revenues for big data and business analytics will soar to around $151B this year (+12% vs. 2016). According to IDC, banking is one of five industries making the largest investments in 2017 in big data and business analytics so it is the subject of our discussion today. Big data, which includes not only data gathering and analytics but also human behavior patterning and complex risk...
Almost all US banking institutions offer remote deposit capture (RDC). That makes sense when you consider a recent remotedepositcapture.com survey of financial institution executives. It found 76% of respondents say the benefits of RDC "far outweigh" the risks and costs and another 20% say the benefits "marginally" did so. That is pretty good for any product and bodes well for RDC too - despite much higher BSA and AML costs over the years. Most banks know they have USAA to thank for being able to offer customers the ability to deposit checks remotely. You see, over a decade ago USAA employees...
Deloitte did some work recently that looked at shifting consumer behavior when it comes to food and shopping. It found the top attributes surveyed consumers ranked in importance around food safety were: free of harmful elements (62%), clear and accurate labeling (51%), clear information (47%), fewer ingredients (42%) and nutritional content (41%). In food as with other shopping activities, this tilts toward a trend of greater buyer control, a desire for better information and a driving focus on what matters to the individual, it would seem. When it comes to online shopping, research shows consumers will often "abandon" the process in...
A study by PwC finds 62% of companies surveyed expect cyber risk to cause disruption in the next 3Ys but only 9% say they have a high or very high cyber risk maturity. Clearly the data shows there is room to improve in this area and community banks are aggressively taking steps to do so as well. Cybersecurity is often in the news. However, one of the latest issues to arise is somewhat new and concerns mobile banking apps. Cybersecurity experts have discovered vulnerabilities with the implementation of encryption connecting mobile phone apps to bank servers. This is concerning indeed as...
Good news - the IRS reports fewer taxpayers reported identity theft in the first 5 months of this year (107k) than in 2016 (204k) and 2015 (297k). It seems better risk management techniques that include: improved coordination between the IRS and private sector tax preparers, better technology filters, limiting the number of refunds that can be send to a single bank, and other factors have all helped reduce this risk over time. Bankers know all about risk management and new governance, risk and compliance (GRC) changes are coming down the pipe in the next 12 months or so. That means community
Have you heard there are now inexpensive cameras that provide a 360 degree view? That's right - you can now pan around an image from the sky to the ground and all points around. Imagine the possibilities - monitoring construction sites to track completion in real time, viewing all areas of the vault, training, product marketing and a host of other applications. The cost of these cameras has come down to only $500 bucks, so look for more amazing videos coming soon with a 360 degree viewpoint. Technology keeps advancing and according to Accenture's "Banking Technology Vision 2017" report,
We found out recently about a scam involving certain food delivery companies and restaurants. It seems some food delivery companies said they offered food from restaurant X, but when ordered online an entirely different restaurant Z was actually cooking the food for the delivery firm. Obviously this situation means you need to be careful about what you order, from whom you order it and also who delivers it, to be sure you are indeed getting what you want. There are lots of risky things in life to be sure and one that bankers don't always think about relates to previous
LexisNexis research on fraud finds merchants believe the following: reducing fraud can help increase my company's sales (48%), lower fraud rates increase customer loyalty (44%) and they believe it costs too much to control fraud (20%). Clearly this data points to both the opportunity and risk of fraud and its ancillary drivers for both customers of banks and banks themselves. As banks step up anti-fraud defenses, research suggests it may come at the expense of customer loyalty. In the zeal to verify transaction data like identities, banks can wind up annoying the very customers they are trying to protect. Verification processes and
Facial recognition has made some huge strides in recent years. In fact, MIT reports face detecting systems have jumped in China and are used to provide access to facilities, track down criminals, track movement within a building, transfer money and a host of other things. It won't be long until this technology sweeps the world as it can provide increased accuracy in recognizing people and in speeding transactional flows. This technology and many others are key reasons why community banks must keep moving forward with their plans to grow and evolve. This is despite unprecedented levels of change in recent
Research by Princeton and the University of Chicago finds men ages 21 to 30 spend much less time working and much more time playing video games than men 31 to 55. The data finds hours worked for the younger group fell 12% from 2000 to 2015, while it declined 8% for the older cohort. The study also found those who stopped working average 520 hours per year on the computer and 60% of that time is spent playing video games. Speaking of things people do related to computers, in 2015 Juniper Research estimated that cybercrime would cost businesses $2.1T globally by
We searched Google for the word "good" and got back 6.8B results. We then repeated the process for the word "evil" and got back only 609mm results. We were quite pleased to see that Google's algorithms are so smart that good wins out in the battle vs. evil. As with all things in life where this battle is occurring, good bank technology teams have also been fighting to beat back the evil doers out there in the cyber world. In this fight, some are turning to the field of biometrics. Today, most banks safeguard customers' sensitive data with passwords, but a
A Visa survey finds the average person spends $2,746 per year on lunch. It seems people eat out about 2x per week on average at a price of $11.14 per meal. That leaves packed lunches or meals at home for the rest of it at an average of about $6.30 per meal. For those keeping score, the data shows it costs about 43% less to eat at home or brown bag it than to eat out. That said, what's the fun in that? As you ponder where you may get your lunch today, we give you something else to think
It used to be that when you hit 65Ys old you could retire and feel pretty comfortable where you were. These days though, research by the Bureau of Labor Statistics (BLS) finds people are working longer. The BLS found that as of the end of last year about 18% of the workforce was age 70 to 74 and another 8% were age 75 or older. Reasons vary, but one certainly has to do with wealth management. When it comes to wealth management, fee-based income has been an important focus for banks over the past 10Ys. One way to do so is
Whether you are going on vacation or have already been on one, we find a recent survey reported by CNBC from LearnVest interesting. It found 66% of Americans say they spend more on a 1 week vacation than they do on a month's rent or mortgage and that they typically pile up $1,108 in debt doing so. That means it takes the average person 6 months to get back to where they were before going on vacation. Ah well, bankers are under so much stress we hope you are spending more and staying longer to recharge. Unlike the rest and
A recent article by Concur identified the biggest job related annoyances that have surfaced in the past 20Ys or so. They include: smartphone sounds, unnecessarily replying to all in an email, having awkward web conference calls, over sharing links, pressuring co-workers to share your creations with their personal networks, sending emails to colleagues on the weekends, slow computers, sharing critical information verbally instead of through email or otherwise documenting it, connection requests on social media from co-workers and old technology solutions. In banking there are many other annoyances beyond bad employee habits and one of the spookiest relates to cyber
In a twist that is certainly giving Exxon and other gas and oil companies' gas, France announced it plans to end sales of gas and diesel cars by 2040. Of note, France's goal is well behind Norway (2025) and India (2030), but is nonetheless a big move toward ending fossil fuel usage it would seem. It looks like electricity will be all the rage in the next 10Y to 25Ys or so. In similar fashion, sometimes new accounting rules can also give community bankers indigestion. It therefore comes as a pleasant surprise that a new interpretation of a FASB rule could
Keep your eyes open around the bank. We say this because a new American Express OPEN survey finds 18% of employees say they have stolen someone else's lunch from the office refrigerator. This is certainly a sad state of affairs, so let's hope the next time you open the fridge this hasn't happened to your lunch. Speaking of open things, today we zero in on recent UK and EU legislative developments focused on making "open banking" a reality in these markets in 2018 (and then probably the US). Starting next year, European banks must facilitate access to account information through
Good news for all of those coffee drinkers out there. New research published in the Annals of Internal Medicine finds a direct correlation between coffee drinking and a reduced risk of heart disease, stroke and liver disease. A 16Y study found men who drank 3 or more cups of coffee per day lower their risk of death by 18%, while women saw an 8% decline. Drink up! In other good news, 1Q17 was a good time for community banks too, according to the FDIC's Q1 report on how 5,401 community banks are faring. In many categories, community banks outperformed
Here's a weird thing - kids fight about all kinds of things, but money isn't one of the biggies. In fact, a CNBC report finds only about 15% of adult siblings say they fight about money. Of note, for the group that does fight about money, the survey found 68% said parents were the cause (how they provide financial support, divide inheritance and other factors). We figured as a banker you would like to know what your customers are doing, so we share this today. Speaking of sharing things you might want to know about, we switch our topic to
Really small things can sometimes really help humans. Look no further than a discovery made by the University of Southampton. There, researchers found nanostructured glass can be used to record and retrieve data. These small glass disks about the size of a quarter can hold 360 terabytes of data. Also, this storage device can handle heat up to 1,000?C without an issue. Basically, the research indicates companies should be able to store and save their data at room temperature for about 13.8B years. That is a really long time obviously, so this finding provides a greater possibility in solving the
For eons, people have stared up at the night skies and wondered when or if we might travel to a habitable planet. Roll forward to this year and astronomers report finding just that. Even better, this planet known as Proxima Centauri or Proxima b is only 4.24 light years away. It orbits the closest star to the sun, is about the size of the Earth and it may have water. This discovery is pretty interesting if you ask us. In another interesting thing more directly related to community banking, we focus our energies today with some methods and madness around finding
In a great news story, scientific researchers at London's Royal Marsden Hospital have reportedly been able to dramatically shrink tumors related to ovarian cancer. A reported 70% of patients with a specific molecular target responded positively to the drug. Scientists are calling this the biggest breakthrough in ovarian cancer in a decade and that is good news indeed. In banking, technology experts have been seeking good news when it comes to defending against security breaches. According to Identity Theft Research Center, last year saw a 40% increase in reported data breaches, including the largest in history affecting a
While searching for a cure to cancer, scientists this year uncovered the cells that make hair and also turn it grey. That is good news for those who have gone bald and want to grow their hair back and for those seeking to look younger. Scientists say the breakthrough could one day solve both issues. On a similar front, bankers everywhere have been researching how best to leverage their branch network and the staff therein. While not as fancy perhaps as growing hair or staying young, we know many bankers out there that would have more of both if
A new study by Penn State researchers finds the sooner babies are put in their own room the longer they will sleep. That's right, babies that didn't sleep in the same bedroom as their parents slept for longer stretches of time (about 45 minutes longer). The information runs counter to recommendations of the American Academy of Pediatrics, who say parents should share a room (but not a bed) with babies for 6 months to 1Y. It is something to think about perhaps but be sure to check with your pediatrician to get professional advice. In banking, the professionals say many
We have to say one of the grossest jobs is probably being a restroom attendant. After all, bathrooms generally stink and people can be strange. In addition to that, research by Michigan State University finds only 5% of people properly wash their hands long enough to kill infection-causing germs and bacteria. That is just gross, so to improve you need to wet your hands with clean running water, apply soap, rub them together to get lather, wash front and back of hands as well as between fingers and under the nails. Do this for a full 20 seconds (singing the
Every time we go into the dentist it seems a lecture happens about how you should floss your teeth more. That makes sense when you consider a survey by National Health and Nutrition Examination that finds 30% of people floss daily, 37% do so sometimes and 32% say they never floss. The American Dental Association meanwhile, says those who floss daily are probably actually closer to only about 10%. This makes you want to grab some floss and run to the bathroom, or then again, maybe it doesn't. Now that you know a bit more about what your employees are
Really smart people are known as geniuses, but that term isn't strictly defined. It generally means someone with an intelligence quotient (IQ) score of 175 or higher. Given how the math works around such scores, about 67% of the population has a score between 85 and 115, while about 5% of the population scores above 125 and 5% below 75. To get into the high IQ society of Mensa you have to score at the 98th percentile or higher on the test. This brings us to our discussion today around some of the things the smartest banks will do related
They say that if you want to become the best at something you have to do it 10,000 times. Maybe that is why so many people do not achieve their goals. In fact, research by the University of Scranton finds 92% of people that set New Year's goals never achieve them at all. To get where you want to go, perhaps it is time to leverage findings from researchers Edwin Locke and Gary Latham. They found people who simply set specific goals that were challenging, achieved higher performance about 90% of the time. Community banks for years have expressed a goal
Research by HubSpot finds 81% of shoppers will do online research before making big purchases. Interestingly, 44% of people reportedly go to Amazon to start looking around, while 34% will use a search engine like Google. No matter what you are looking for, it is clear the search engine remains a critical part of the overall process. In banking, customers will often search around trying to figure out who has the best online bill pay options. That makes sense when you consider that online bill pay is one of the most popular features of online banking. In fact, when
Bankers and other financial professionals know people are just plain weird with their money. Look no further than a report from BMO Wealth Management around the subject of estate planning. It found a whopping 72% of adults said they did not know any details of their parents' wills or estate distribution plans. In addition to this, 40% of parents surveyed said they have never discussed their estate intentions with their children. As if that weren't enough to think about, consider 25% of married adults said only their spouse knows the location of their will or powers of attorney.
The first smartphone showed up in 1994 and was known as Simon. It was upgraded in 2000 when Ericsson released the first flip phone style called the R380. Then, along came the Palm Treo (2002), Blackberry (2003), the category killer iPhone (2007) and the Samsung Galaxy (2010). Fast forward to today where the latest research shows 77% of people in the US now own a smartphone. Mobile banking too has become standard procedure in all corners of America, yet signing up for a new account on smartphones is still uncommon. According to a 2017 Javelin survey of the
A Wells Fargo/Gallup poll of US adults finds 32% are providing assistance to an adult child, parent or both. Of this group, 75% were doing so to assist an adult child, 19% were helping a parent and 6% were assisting both. In addition, the survey found 46% of respondents overall, who have one or more grown children, said they were providing them with financial support. This could provide an opportunity for your community bank so we thought you might want to know. Another thing to know this morning relates to wire transfer fraud. On this front, the FBI warns
An interesting research paper published by the International Journal of Multidisciplinary Research looked at the impact of different personalities of managers on employee performance. It found there are six main types of managers that people work for: respected professional (task driven, honest, reliable at 29%; caring mentor (cheerful, generous, flexible at 26%); win-at-any-cost (tough, controlling, ruthless at 19%); taskmaster (get the job done but without much concern for employees at 10%); likeable loser (nice person but not competent at 9%); and the glad-hander (friendlier than win-at-any-cost but similarly, considered dishonest, unreliable, clueless and uncaring). To make a big difference at
An Australian study of US corporate executives finds about 20% has psychopathic traits. These traits include such things as: exploiting, manipulating or violating the rights of others; lacking concern, regret or remorse about other people's distress; behaving irresponsibly and showing disregard for normal social behavior; being unable to control their anger; lacking guilt; not learning from mistakes; and blaming others for problems in their lives. These managers typically create chaos around them, can be toxic to other employees, and will engage in unethical and even illegal practices. The good news is that given the data, that means around
A study by the Organization for Economic Cooperation & Development looked at the financial literacy of teenagers. It found that while a good 56% of them have a bank account, 67% did not have the skills to manage it or interpret a bank statement. Further, only 12% scored out with a high financial literacy. Kids are good at many things (technology for instance), but clearly there is more work to be done on the financial side so bankers can get a quality future crop of new employees down the road. Well, at least we have a starting benchmark
Research finds about 91% of full time equivalent employees get paid vacation. That is great because everyone needs to wind down and relax now and again. That said, a survey by Glassdoor finds the average worker only takes about 54% of the vacation days they are offered each year. Reasons for this vary, but include a fear of getting too far behind on work (34%), believing no one else at the company can do the work while they are gone (30%), being completely dedicated to the company (22%) and feeling they can never be disconnected (21%). Vacation time
We found an interesting survey from financial technology and investment analytics firm FinMason. It looked at the risk tolerance of investor equity portfolios. What is particularly interesting here is that a whopping 43% of investors said they did not understand the term risk tolerance. Even worse perhaps, 68% of millennials did not know their risk tolerance. This means many of your customers probably do not understand the impact of a market crash on them either. To help, we point out that risk tolerance is all about understanding someone's psychological threshold, while risk capacity is all about how much the person
Back in the day, people sometimes referred to older cars with such terms as clunker, rattletrap, junker, bucket of bolts, or old jalopy. These days, we find it interesting that an IHS study finds the average length of time people own their car has reached a record 79.3 months or almost 7Ys. That makes some sense when you consider how tight people got with their money following the crisis and the fact that the average price of a new car is now $34,342 according to Kelley Blue Book. When you drive around in a car that is that old, you
If you have wondered why politics is so crazy these days, consider an ICBA report that finds there are about 30 lobbyists for every 1 legislator. To visualize this, take a look out the door of your office or stretch out from your desk that is 30 people deep. Then, think about how you would deal with those people when they file in 1 by 1, asking you to do something to help them. Perhaps, all of these voices jockeying for time and providing singularly focused input could be a key reason Congress seems to move so slowly. Let's hope
A CNBC survey of Disruptor 50 founders and CEOs finds just over 56% of respondents said 11% to 25% of America's workforce will be replaced by machines or software in the next 10Ys. Also of interest perhaps, some 68% of the visionaries who responded said artificial intelligence is critically or very important to their businesses. As the survey points out, community bankers too should be thinking constantly about the future and in particular - where risks and opportunity may lie ahead for you. Almost 50Ys ago, machines began their takeover of banking when ATMs came on the scene. Today, new changes
We found a report by real estate research firm ATTOM Data Solutions on home ownership quite interesting. It found the percentage of non-married people who got mortgages together climbed from 20% last year to 22% this year. That was one of the highlights, but digging deeper into the data what jumps out is that many "unmarried" co-signers (or co-borrowers) were the parents of children who bought homes. Perhaps this is due to heavy student loan debt or just really nice parents, but it appears a decent chunk of home buying is being subsidized by parents. As you let that sink in
A Gallup poll on telecommuting produced some interesting thoughts. Given all the talk as of late around various companies ending this practice to drive more productivity, we took a close look at the poll. It found that 37% of US workers said they have telecommuted, while 63% have not. Of those who have done so, the number of workdays the group said they typically telecommute is 1 to 2 days (23%), 3 to 5 days (22%), 6 to 10 days (6%) and more than 10 days (24%). Further, 46% of those who telecommute said they did so after regular business
Goldman Sachs research projects that by 2030 fully autonomous (self-driving) car sales will be 20% of total sales. Once that level is reached, an estimated 25,000 job losses per month will occur for truck drivers. If this holds true, it looks like quite a few people won't be driving themselves around in the US and that taxi, limousine, and other car services could feel a significant impact too. This will be a big change for sure, so it is good bankers have an estimated 8Ys to 13Ys to figure it all out. As you ponder the impact of driverless cars on
Here is something to know. The ABA reports 76% of banks say social media is important to their institution. Yet, only 24% of banks have been using social media for >5Ys, 63% have been doing so for <5Ys, 5% are planning to start in the next 1 to 2Ys and 9% say they have no plans to use it at all. Not sure where your bank falls, but leveraging social channels can help protect your customers from being poached so it sure seems like a good idea. The idea of protection of all sorts is all over the banking industry. For
The banking business requires that bankers and regulators have a high degree of respect for each other. Community bankers especially try to foster good regulatory relationships, and exam teams often find bank management eager to incorporate ideas, observations and improvements from exams. To help in this area, we note OCC research, as reported by the ABA, finds the top 5 Matters Requiring Attention (MRAs) in the prior year were: easing of underwriting standards (easing standards to achieve growth); loan portfolio composition (CRE concentrations, commodities exposures, new products); staffing concerns; credit culture (weak cultures ease underwriting, offer new products without proper
Vision is an interesting thing. For instance, did you know that according to the Vision Council of America, about 75% of adults use some form of vision correction? About 64% wear glasses and 11% wear contact lenses exclusively or with glasses. Meanwhile, research by the National Eye Institute finds the top three most prevalent adult vision impairments and age related eye diseases in America are: cataracts (24.4mm), diabetic retinopathy (7.7mm), glaucoma (2.7mm) and age related macular degeneration (2.1mm). There are certainly lots of things to think about when it comes to vision. In the community banking world, many management teams we
Community bankers have been crushed by regulations since the credit crisis began. This pressure has been so intense it has some thinking the pressure is about the same as what it takes to turn a chunk of coal into a diamond. While we know some of the banker scientists out there will say that isn't how it works, you get the point. The industry has been squeezed all over the place in the past few years. Low interest rates squeezed margins. Regulatory and compliance requirements squeezed profits and now many community banks are being squeezed by the aging and retirement
Kissmetrics finds there are four key elements that lead to a good company culture. Since community banks are always seeking to improve, we offer these up as something to consider. The elements are: hiring people who fit your culture, make sure employees know the values and mission of the company, understand that good decisions can come from anywhere in the company, and realize the company is really a team and not a bunch of individuals. As you think about your own bank's culture this morning, we broaden our discussion to focus in on the way some top companies conduct job
Dealing with customers is always tricky. The more information people have the more they seem to demand from bankers. Look no further than research from Thunderhead that finds 30% of people will share a bad experience they have with a company and 19% will not trust a company after a single bad experience. That is a lot of pressure. In the banking industry it seems everything is going digital, so the pressure to deliver a high quality experience and great customer service no matter the channel is critical. When it comes to consumers and mobile banking, studies show that mobile banking
You may not be keeping track, but research by Email Monday finds 79% of people surveyed use their smartphone for reading email. Perhaps more interesting is that if the trends hold, sometime next year an estimated 80% of email users will access their email accounts exclusively from their mobile devices. It looks like if you want to communicate with someone using email you will have to make it fit into something pretty small. A study by Harris Poll finds just over 50% of millennials say they are familiar with their local community banks. That is ok maybe, but it pales
Did you know that the latest research from Gallup finds 91% of workers who email outside of work say the amount is reasonable? That's right - employees and executives alike understand and accept that email is part of life now and emailing after work does not affect their well-being. That is good since 60% of workers say they check email outside of normal business hours. As you ponder that this morning, consider that in the banking industry regulators seem to be checking bank data outside of regular work - particularly when it comes to concern over commercial real estate (CRE)
About 25% of Americans say they now conduct most of their transactions in cash vs. 36% who said so 5Ys ago, according to Gallup research. Interestingly, while 10% say they make all of their purchases with cash (vs. 19% 5Ys ago), about 41% say they make some of their purchases with cash (vs. 33% 5Ys ago). People are adjusting their cash usage it would seem as demographics take hold and people shift toward electronic payment methods over time. For some crooks, all of this electronic money movement is a dream, and community banks like other banks are still juicy targets. Banks
The world has definitely changed over the past few years as things have really accelerated. Look no further than research by Forbes Insights that finds 82% of customers will conduct product research online. Once that work is completed, 75% of these same people according to research by McKinsey expect "now" service within 5 minutes of making contact online. This is the world we live in; speed in all things is now a way of life it would appear. In banking, small business owners also want speed and great service when they are looking for a loan. This group also has higher
We found it interesting that Amazon guru Jeff Bezos is now reportedly worth just over $60B. That makes him about $5B shy of becoming the richest man in the world according to Bloomberg. As if that weren't enough to make your head spin, consider that Amazon itself has grown so much that its market capitalization is now twice the size of Walmart. Put another way, Amazon is 2x the size of Walmart in value. That is a lot of growth over the past 20Ys. Speaking of growth, things are a bit different over in the banking industry where regulations and restrictions
ABA research finds 71% of baby boomers use online banking services at least 1x per week. This is on par with both Gen X and Gen Y. This is extremely important to community banks, who know that boomers also control about 67% of all bank deposits. Given the shifting nature of technology and the way people keep learning and changing their behaviors, should community banks be thinking more aggressively about closing branches? Certainly, community banks pride themselves on maintaining the sort of "high-touch" personal relationships with their customers that larger rivals struggle to offer, despite their deeper pockets and their technological
McKinsey research finds that 10% to 40% of bank revenues (depending on business line) could be at risk from financial technology (Fintech) players by 2025. That is just 8Ys from now and it indicates community banks will need to keep refining the business model and adapting to customer demands in order to maintain a strong foothold. Certainly, competition is on the top of everyone's mind these days, as it seems to be coming from everywhere. One way to manage competition is to broaden your target market - even outside US borders. These days, many small business clients have or are already
Researchers at New York University and Michigan State University have reportedly figured out a way to easily fool fingerprints digitally by creating artificial master prints that can open up smartphones up to 65% of the time. These master keys if you will are a spooky concept because they demonstrate how bad guys might also break into biometric safeguards that are being used more and more by banks. It just goes to show that for every countermeasure there seems to be a new workaround that quickly follows in this technological world around us all. Speaking of measures, in the banking industry the
As we read through a recent research piece by McKinsey, an interesting sentence caught our eye. It read: In the eight year period between the Netscape IPO and the acquisition of PayPal by eBay, more than 450 attackers - new digital currencies, wallets, networks, and so on - attempted to challenge incumbents (in the banking industry). Fewer than five of these challengers survive as standalone entities today. It seems that the banking industry with all of its rules is a tough one to disrupt. That doesn't mean bankers can rest idly however, because technology is beginning to take hold, so
The Boston Consulting Group projects 25% of miles driven in the US by 2030 (just 13Ys) will happen in self-driving cars. That makes some sense, when you consider autonomous vehicles can reduce travel costs by a projected 60%. Who knows, perhaps the next car you buy could be your last one, so choose wisely and enjoy it. That is a huge change in a short period of time. Speaking of huge changes, you have most likely heard that Bank of America has opened three mini-branches that have ATMs and videoconferencing - but no human bank employees. They call these automated centers
A study by eMarketer finds Amazon's Echo and Echo Dot speaker devices have a 70.6% marketshare in the US followed by Google's Home device with 23.8%. That means everyone else in this space is fighting for the remaining 5.6%. That is a long way for competitors to go to gain on these two juggernauts. Speaking of countdowns, community bankers should note that the Brexit countdown has officially begun overseas. As expected, on March 29th, British Prime Minister Theresa May sent a letter to the President of the European Union (EU) indicating Britain's desire to leave the EU. This officially triggered
Did you see the story that quoted renowned theoretical physicist Steven Hawking? He originally said the human race had about 1,000Ys to populate another planet or risk facing extinction, but has now moved that up to a mere 100Ys. He points to overdue asteroid strikes, climate change, epidemics and population growth as likely catalysts. We better get going soon because building a base takes time and we have to account for travel too. Approximate travel times: Moon (3 day trip), Mars (7 months), Venus (15 months), Jupiter (6.0Ys) Mercury (6.5Ys), Saturn (7.0Ys) and Uranus (8.5Ys). While traveling in outer space is
In 2008, regulators introduced a concept banks know as third party or vendor risk (vendor risk). This concept came from lessons learned during the credit crisis and has come to encompass not only mortgage foreclosure activity conducted by third parties, but also consumer compliance, cyber risk and today includes all products, processes, systems and services supported by a vendor relationship. These vendor relationships include outsourcing, using subcontractors, independent consultants, networking arrangements, services provided by affiliates and subsidiaries, joint ventures, and other business arrangements in which the bank has an ongoing relationship or may have responsibility for the associated records and
To wake up our readers this morning, we thought you might enjoy the fact that about 17% of people sleep naked! Wow, that is a lot of people slumbering in the buff. Hey, get your mind back in the banking game now, because we have a lot to cover today. While community banking isn't perhaps as fun as sleeping naked, let's get going anyway. Our discussion today is around liquidity management because it is something that is always on the minds of bankers and especially the bank's ALCO. Proper liquidity management requires a balance that takes planning, discipline and these days,
A study released last year found that using virtual reality and non-invasive brain-machine interfaces allowed subjects who were paralyzed to regain touch sensation and some voluntary control of muscles in their legs. Think about that for a moment. In the experiments, subjects used a brain-controlled exoskeleton and virtual reality to actually walk! This is an amazing breakthrough that could perhaps one day help the 1 in 50 Americans (and millions of others worldwide) who are paralyzed to regain greater mobility. Wow. While not nearly as amazing or potentially life changing as this breakthrough, community bank investors play an important role
If you want to get a project done, be sure everyone introduces themselves. We say this because research from China finds cooperation increases when people know each other's names. Testing found that when people did not know each other's names they would cooperate to solve a problem only 25% of the time vs. 50% to 75% if they knew the other person's name. If you want to drive more cooperation on bank projects, use this as a little tip to break the ice before starting any meeting. This technique is a good one to use when seeking business opportunity with customers
A study by the Brain and Spine Institute in France finds that people are strongly influenced by the people around them and may unknowingly tend to imitate behaviors. The researchers found that after watching how someone else made a given choice, people tended to act more like the person they had observed. If the person they observed was lazy, they tended to act that way too and put off making the decision. Meanwhile, if the person was impatient, they tended to act that way, and if the person was prudent in their choice, the person tended to act that way.
Spinach is good for you. Research shows it is not only good for your skin, hair and general health, but it might even improve blood glucose control for diabetics, lower the risk of cancer, reduce blood pressure and even reduce the risk of asthma. As if this green leaf weren't doing enough work for humans, scientists have now used its plant cells to create beating heart tissue that might one day treat heart attacks. This breakthrough and the very plant itself are truly amazing. After all, the CDC ranks heart disease as the #1 cause of death in the US
An advancement in robotics links humans with metal machines and here is how it all works. Humans wear a dorky skull cap that picks up brain signals. The brain signals travel down wires (probably go wireless soon) that connect from the human to the robot. As the human watches what the robot is doing, the brain sends out signals that are generated when the brain notices the robot is making a mistake. Those signals are picked up by the robot and it then changes its action. That is really pretty interesting if you ask us. Bankers could use such technology