BID Daily Newsletter Archives

March, 2020

Earmuffs were invented by a 15Y old, which shows that all ages can be innovative. That is a good thing, but right now we especially need scientific innovation, as we battle the coronavirus. The coronavirus has affected many of us. Social media has shown the long lines and out-of-stock shelves in the grocery stores as people plan to hunker down if infected. $113B is the potential loss for the airline industry due to a drop in passenger revenue, according to a trade group estimate. With the NBA season suspension, the association stands to lose around $972mm in TV ad revenue...

The FDIC, the Federal Reserve Board and the Comptroller of the Currency issued a statement on new rules for use of capital and liquidity buffers during the coronavirus crisis. The statement includes a Q&A to respond to inquiries. The highlights of the statement include:Banking organizations are encouraged to use their capital and liquidity buffers which were designed to respond to adverse situations like the effects of coronavirus. It allows institutions to continue to serve households and businesses. The agencies expect banking organizations to continue to manage their capital actions and liquidity risk prudently.The agencies also issued an interim...

On Monday, the FOMC made some drastic decisions to put additional measures in place to help the current economic situation by providing additional credit resources for households and businesses. "Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs incomes and to promote a swift recovery once the disruptions abate." The agency is expending its "full range of authorities" to provide the robust support needed. Here are the highlights that the FOMC will do: Support for critical market functioning. The Federal Open Market Committee will purchase Treasury securities and agency mortgage-backed...

We know everyone wants information quickly these days, so we have come up with a shorter version of the BID. We will use this format when there is especially pertinent COVID-19 information, information on pandemic planning, regulatory guidance, or insights on the current market. This way, you can easily skim, but still dig deeper, where needed. The FDIC recently released FAQs for both financial institutions and consumers. Because of this unprecedented situation, the agency wanted to provide as much guidance and resources as possible. We provide you with a brief synopsis of the FDIC Financial Institutions FAQ. We...

Did you know that sleep actually cleans your brain? With these turbulent times, you will need more brainpower, so sleep away!While the US and international economies try to grasp the full financial impact of the coronavirus, we wanted to remind you where the housing market left off before this pandemic occurred and provide some initial insights into the impact on the job market and other economic indicators.Before the coronavirus, an older overall population, rising housing prices, and a nationwide shortage of affordable, entry-level homes were all pushing buyers' average age toward 50. As we have all heard, high student...

We just ran across a study that found diners who used larger forks ate less. This seems counterintuitive. But, I guess if it helps drive healthy eating, why not give it a try?Switching from food to banking, today we cover another driver -- loans. Loans are a top driver of a community bank's profitability, particularly residential mortgage and commercial real estate lending, according to a survey done by Independent Banker magazine. Banks say that they expect loans to be the biggest source of revenue growth in 2020, but they also expect loan growth to be challenging this year. These five...

Training is big business. Last year, $83B was spent in the US on training. For bankers, mobile banking training is one of the most important areas. So, we focus on that today.Many of you may have spent a bundle launching all the latest digital banking tools, particularly to woo more millennials and GenZers. Yet, older customers often seek help trying to figure out how to use them. Is your staff equipped to support your customers on these technical advancements?It's critical to train your staff not only on how to navigate each digital product and service you launch, but also how...

Brain functions happen through connections called synapses. Now, research has shown biological and artificial synapses can happen through the Internet. Technology seems to really allow scientists to step up their game!Unfortunately, cybercriminals seem to be stepping up their game too, when it comes to targeting businesses. Phishing attacks known as business email compromise (BEC) are so sophisticated that they are 20x more successful than the typical phishing emails sent to consumers. While many people now know the dangers of clicking on unsolicited links, cybercriminals are tailoring spear-phishing efforts to business employees to make them far less obvious. In BEC attacks,...

Today is St. Patrick's Day, which is Ireland's national day. Last year, 500k people participated in the celebrations throughout Ireland. But, the coronavirus is impacting public events, and this year it looks like these celebrations will be impacted too. Just days ago, the WHO declared the coronavirus a pandemic. So, it is definitely a good time for community financial institutions (CFIs) to review their business continuity plans and ensure pandemic planning is included. Traditional business continuity plans could be less effective if they don't incorporate the risk of widespread illnesses.To help, the Federal Financial Institutions Examination Council (FFIEC) just updated...

Did you ever think the day would come that you would pay extra for that middle airline seat? Apparently, some airliners are adding an inch to the middle seat and then adding a premium price for the extra comfort. We will soon learn if this strategy works or not. Something else to learn is how CECL implementation is going for the big banks. Community financial institutions (CFIs) have a breather before they'll need to comply, but the law went into effect for the largest banks on January 1, 2020. While we started covering some of the big banks' expectations...

Community financial institutions (CFIs) know customer service is critical to keep customers. In fact, research by American Express finds 90% of Americans use customer service as a factor when deciding whether or not to do business with a company, and 81% feel businesses either meet or exceed their service expectations. These days, people have different expectations for businesses, and you need not look further than online retail giants, such as Amazon, for proof. They have established a new standard for personalized customer experience. These companies understand their clients, make recommendations, and anticipate their needs. Customers want the same experience when...

Believe it or not, there are over 246mm US mobile internet users as of January and an estimated 57mm are using mobile banking. Given such large numbers, it is not surprising that chatbots are becoming more popular too.As a quick reminder, chatbots are simply software programs that have a conversation with you online. Some of these are so good they can sound and act like humans even. Given many community financial institutions (CFIs) are continually thinking about how to help employees, chatbots should be considered.That is because a growing number of people are suffering from things like stress, burnout, and...

George Washington did not have wooden teeth, contrary to popular belief. However, he did have only one natural tooth for his inauguration as president in 1789. He had a customized set of choppers comprised of ivory, gold, and brass. Bankers also need to have teeth in their fraud-fighting these days as cyber thieves bite down on bank customers and profits. As cyber thieves become ever more sophisticated, identity fraud remains one of the banking industry's top security concerns. This is particularly true because peer-to-peer (P2P) payments are typically irreversible and becoming more and more popular. At the same time,...

Making change for a dollar is pretty easy, even if there are 293 ways to do it. Also, the dollar bill has not been changed since 1963 and the first face to appear on it in 1862 was Secretary of Treasury Salmon Chase (not George). Other changes, especially in digital banking, are not so easy. It happens that just when you map your digital journey, another player shakes things up or technology zooms ahead in a big way. So, how can community financial institutions (CFIs) best prepare for the industry's next stage of digital evolution?Leverage your compliance expertise & relationships....

Interesting fact: Blood donors in Sweden get a text once their blood is used. It must be a good feeling to know you have helped another person so directly. One way bankers can help businesses directly could be through credit cards.Credit cards for entrepreneurs could be an untapped market for community financial institutions (CFIs). This insight comes from a few different studies, which we want to highlight today.While just 3.3% of small businesses have business credit cards, the market has the potential to expand to $700B by 2022, according to a report by Mercator Advisory Group. So, knowing this, what...

Some of the weirdest places we have heard people stashing cash are: in their high heels, in a TV, in their roof, in the bathroom, and swallowing it. Undoubtedly, all bankers think depositing it is much safer and more practical. The competition for deposits is fierce, as fintechs and big tech enter an already crowded space. There are many ways to compete here, so we thought we could provide you with some suggestions. One or two or a combination of them could be the winning way to collect more deposits and customers.First, you can offer higher interest rates. Some financial...

You may not know this, but termites live longer than any other insect -- even the cockroach. It has been said that the queen termite can live up to 100Ys! Most CEOs probably don't work at their financial institutions that long, so it is always a good time to do succession planning. Succession plans give financial institutions a chance to assess the skills that future executives will need, decide which staffers are most promising, and deliberately cultivate those people's skills. Succession is a critical topic for business longevity, and it's of increasing interest to regulators. Unfortunately, some directors struggle to...

Unless you are an avid gardener, you may not know that tree branches are not constructed to grow back once cut. However, dormant buds in that spot often grow into branches instead. In the same vein, instead of cutting your branches, you may want to think about maximizing them instead.Read the financial press and you'll learn that banks all over the US are getting rid of or repurposing their physical branches. Recent research shows, however, that many community financial institutions (CFIs) are keeping theirs, especially in rural areas. The key to doing this successfully is simple to say, but harder...

Some of the basics when investing are: 1) set investment goals; 2) look at your finances; 3) diversify your investments; 4) keep informed. Some of the same ideas are used by bank investors as well. We bring up investors because another change for banks ties into planning for CECL. Investors and analysts are already making adjustments to market valuations, based on how much they project CECL will affect the loan portfolio. This could also be a reason to start early with CECL for some banks too. Consider that investors want to project future earnings and the impact of CECL will...

There is an interesting custom in Scotland, where you paint your door red when you have paid off your mortgage. So, the next time you see a red door in Scotland, you know you don't need to ask the owner if they are feeling pretty close to financial freedom. Today though, we were happy to get some interesting questions from our readers. We hope you enjoy the answers. Q: We're watching the open banking trend very closely. What do we need to do if we decide to go this route? A: Certainly open banking offers significant enough opportunities to warrant...

February, 2020

In case you were wondering, the data still shows the average college graduate earns 80% more than high school graduates. That is interesting when you consider only 51% of US adults consider a college education to be "very important." For financial institutions (FIs), many things can be considered very important too. Data analysis for instance, is becoming increasingly important for FIs. Yet, a large percentage of consumers are distrusting of the ability of companies and organizations collecting their data to keep it secure. While more regulations are going into effect to ensure consumer data is properly used, community financial institutions

Research by French bank Societe Generale looked at data from the past 2Ys and found that investors only have ~22% chance of picking a stock that beats the S&P 500 index. When your financial institution (FI) gets ready to pick someone as a new employee, we hope your percentage is much higher. After all, hiring the right talent is a challenge for all businesses, which is why training existing staff is critical.Community financial institutions (CFIs) are not alone in having trouble finding or retaining qualified talent with the tight labor market. A report from Glassdoor provides some numbers on the

A lot happens when people get engaged. Surveys find people spend about $5,000 on an engagement ring, and 20% pick it out as a couple. Also interesting, 50% buy a ring from a brick and mortar store, and the same percentage buy it less than 2 months before proposing.No matter what your financial institution (FI) offers as a proposal to customers, things are certainly hyper-competitive. As such, trying to offer the best customer experience is very difficult when looking to win over new customers and retain existing ones. Indeed, as customer experience becomes more of a call-to-action for FIs in

Warren Buffett, also known as the Oracle of Omaha, and one of the best investors in the world has some advice for you. He says the difference between successful people and really successful people is that really successful people say no to almost everything. His point -- constant focus drives success. To be successful when it comes to cybersecurity, you have to focus too. After all, there are many security tools that can identify potential threats to your financial institution (FI), but there are also many false positives too. This massive ongoing flow often overwhelms information security professionals. This issue

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

January, 2020

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

December, 2019

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