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
A Columbia University professor did a study to see if he could get people to shop around for health insurance plans to help them save money and get better coverage. He sent randomized emails that either indicated the amount of savings in insurance premiums people could get and generic ones that just emphasized the possibility of saving money. He found 31% of those who received either message took action vs. only 25% in the control group who received no message. To get customers to consider a new product or service you may have, perhaps using a similar approach might serve
Just when you think you are good to go in life, you can get a curve ball thrown your way. Look no further than the data around lottery winners that finds a whopping 70% of these folks end up going bankrupt within 5Ys. Financial planners say that is because these winners can tend to feel invincible, leading them to give away too much money too fast. That is really rough when you consider the odds of winning the Powerball jackpot are a paltry 1 in 292mm. It won't be lost on community bankers that it appears the real issue here
People like to talk to each other and apparently to their devices as well. For instance, comScore finds 40% of adults now use voice search at least 1x per day. Meanwhile, MindMeld research finds 60% of those surveyed say they started using virtual assistants in the past 12 months. Maybe that is why comScore projects 50% of all searches will be done by voice in the next 3Ys and Mediapost projects 30% will be done without using a screen of any sort over the same period of time. It is time for community bankers to talk about this shift in
Bankers are surrounded all day long by money, so we know our readers will find it interesting to know the odds of becoming a millionaire. The St. Louis Fed recently did some analysis here and broke it down by age, education and race. Here is how things stack up. The research finds the odds for middle aged, college educated Americans by race are: Asian (22.3%), White (21.5%), Hispanic (6.8%) and Black (6.4%). Meanwhile, across all groups the more education one has, the better the chances of becoming a millionaire. So, encourage your friends and family to get their master's degree
WebMD reports 20% of people in the US have allergy or asthma symptoms of one sort or another. Still, that is low compared to the 55% who test positive to one or more allergens. Interestingly, 15% of people believe they have a food allergy, while only about 4% actually do. We surface this because it is no sneezing matter that adults miss 5 days of work each year on average due to issues with asthma/allergies. Speaking of things that are nothing to sneeze at, today we explore loan concentrations at community banks. Bank loans have been growing at a rapid
Research by Stanford University Medical Center finds wearable sensors that monitor the heart rate, skin temperature and other variables can actually do a pretty good job in identifying when someone is about to get sick. By monitoring people over time, a baseline of health is established. Once that is collected, biosensors can then check ongoing health factors against the baseline to surface patterns of deviation. Then that information can be leveraged as a good predictor of oncoming sickness when correlated back to specific health problems. If this all works as the testing seems to show, people could be alerted to
It takes guts and grit to start a business. After all, Inc. reports 25% of new businesses don't make it past the first year and 50% fail within 5Ys. In addition, founders of a previously successful business have a 30% chance of success with their next business. Finally, growing too fast is cited as the top reason most new businesses fail. Hey, maybe this is why so few De Novo banks have been opened since the crisis (sic). The good news is that no matter the reason or reasons, community banks are slowly rediscovering the joys of the start-up experience. In
Leave it to the crazies out here on the West Coast to come up with a sustainable angle on beer. Don't get too grossed out when you hear a Southern CA brewery has launched a beer that is made exclusively from wastewater. The beer reportedly tastes just fine and the water has been purified to a level even higher than local water, but it just sounds nutty if you ask us. It seems the brewery in question adapted due to the water crisis in CA. This is very much like the way community bankers are adapting to deal with pressures
Most people know ocean tides are caused by the gravitational pull of the moon and the sun. That said, surfers will tell you that the sun's gravitational force is only 46% that of the moon, so the moon is really the single biggest factor here. They will also tell you the highest tides in the world are found in the Bay of Fundy in Canada, where the difference between high and low tide can be taller than a 3 story building. Scientists will tell you that tides are essentially really long waves that move through the oceans. As you bob
Depending on where you look, you can often find an ant hill or two as you walk along. As those ants toil tirelessly away, new research shows their work has incredible extra benefits too. That research from China finds ants help increase the level of air and water flow in soil, along with the amount of organic matter. That is good for the earth and ultimately good for farmers as it positively impacts the soil where ants are busily working. For their part, community banks sometimes feel like ants in the great big world of the top 5 banks lumbering
A recent poll finds 54% of Americans believe intelligent alien life exists out there somewhere. Even more specifically, about 65% of men believe so compared to 46% of women. By age, those 30 to 44Ys old are the most likely to believe, while those over 65Ys are the least likely. Even stranger perhaps, a National Geographic survey done 5Ys ago finds 77% of Americans think aliens have visited Earth. For bankers closer to home, there is a new alien reporting requirement about small business loans pending before the CFPB. If adopted, it could increase the workload of community banks and
Hey, if you want to be happy in life, there are some things research shows you should do. These include spending 25% of your time each day socializing with friends and family; staying healthy (about 20% happier than average); spending 20 minutes outside when the weather is good; exercise; trying to eat poultry, fish, bananas and drink milk; getting enough sleep and trying to have 5 positive experiences for every 1 negative experience. Now that you know what to do to be happy in life, we pick up where we left off yesterday to try and keep your team happy
A strange statistic that caught our eye comes from research by the University of Scranton that finds 92% of people don't achieve the New Year's goals they set each year. While reasons vary (we won't get into that today), we look instead to the 8% who did achieve their goals. Here, research by Locke and Latham finds that when people do two things in particular (set specific and challenging goals), they will achieve success (in the form of better performance) 90% of the time. As you read further today, think about a few specific and challenging goals you want to
Water is constantly flowing all around the world, which is why we found some statistics about this very subject quite interesting. At the highest level, about 71% of the Earth's surface is water-covered vs. 29% covered in land. Also interesting, of the portion that is water, about 96% is in salt water in our oceans vs. about 4% that is fresh water. Of the fresh water portion, man uses about 70% for irrigation, 20% for industry and 10% for domestic purposes. Now that you know the flow of water around the world, we focus in today on the impact
Did you know that people with green eyes are the rarest in the world? That's right, only 2% of the world's population has green colored eyes. When you also consider that there are only about 10,000 fashion models around the world, the percentage of that percentage of green eyes is indeed a rare sighting. On the other end of the spectrum meanwhile, about 55% of people worldwide have brown eyes, ranking it as the most common color. Speaking of models, the business model of the community bank is both rare and common, we might argue. To understand how, let's zero
If you thought scientists were stodgy types who don't know how to have fun, you were wrong. We laughed when we heard a group of Belgian scientists that discovered a planetary system recently named it after their favorite beer. This group of dedicated researchers were probably toiling away late at night, and when they made the discovery they named it TRAPPIST-1 after beers that have been brewed for centuries by monks in monasteries. We wonder if they celebrated so heartily after finding the planetary system that the janitors found them passed out on the floor the next morning. Who knows,
To keep the bots at bay on the Internet, developers years ago came up with the CAPTCHA - technology that asks users to key in distorted text to prove they are real. Now, some years later, Google said it has come up with a way to do that automatically using machine learning and advanced risk analysis. It is termed reCAPTCHA and it uses machines to challenge suspicious activity and/or users. If it works as well as billed, it could be used by banks for fraud detection, to authenticate users of online and mobile services and a host of other things. Technology
Google announced its team has developed and will release later this year the first wearable smart jacket. That's right - a jacket you can wear and even wash that is connected to the internet. The jacket, known as Jacquard will be available in the fall and will allow users to control certain actions on their smartphone as they walk around town. It was co-developed with Levi's, is a dark color of denim and has a USB stick that slides into it and snaps into place as a button. It allows users to play, start and stop music; check the time
LinkedIn research finds people who said their company had started a project in the past 12 months that ended up a failure indicated the following as the biggest reasons: change in organization priorities (40%), inaccurate requirements gathering (38%), change in project objectives (35%), opportunities and risks were not identified (30%), inadequate or poor communication (30%) and inadequate vision or goal for the project (30%). This is important to community bankers because projects are happening at nearly every bank nearly every day. Speaking of planning, community bankers these days are really focused on succession planning. This remains a big issue and can
Let's face it - Google does some amazing things. Whether it is search or driverless cars, they seem to be constantly tinkering. We bring this up to alert you about some things Google does that you may not know about. For instance, did you know: if you type in any crazy number in the search bar it will spell it out for you; it has been acquiring about 1 company every single week for the past 7Ys; it is also a wedding planner at Google Wedding; Google has a T-rex in front of its headquarters to remind employees not to
In case you haven't heard, a team of physicists have figured out how to encode data on single atoms. Using some super brains, super cool magnets and some super elbow grease they got it to work. By the way, an atom is about 1mm times smaller than a human hair, so this is really, really small. Pretty neat trick and it shows what one can do by attacking a problem head on. Speaking of attacks, there is a new sort of cyberattack going on that bankers should know about. According to CIO, hackers call the customer service line at hotels or
Experts now predict that giant private space station refueling depots could orbit the moon in the next 3Ys. Private companies are preparing to launch rockets, orbit the moon, land on it, explore and even put in place living habitats. That's right, it might be only 3Ys until you can jump on a spaceship perhaps, jet set to the moon and hang out with your friends or family. While strategic planning for banks may not be as difficult as going to the moon, with all the regulatory burden, competition and changing industry landscape these days, some might argue that. When it
We came across an interesting study that finds businesses that offer great service will see 86% of their customers pay more and 40% will buy more. The flip side is also true, where the study found 78% of people walk away from buying something due to poor service. Clearly service still matters to customers, which is great news for community banks across the country that deliver top notch service time and time again. In yesterday's BID on asset liability management (ALM) modeling, we focused on a number of assumptions bankers should think about related primarily to the asset side of the
We note that studies find the probability of selling something to an existing customer is about 60% to 70%, while doing so to a new prospect ranges from 5% to 20%. In addition, it is about 7x more costly to acquire a new customer than to retain an existing one. Finally, you should know that existing customers are 3x more likely to buy from you than new prospects. We bring this up to help your sales efforts, while shifting gears today and tomorrow, as we zero in on helping you better manage risk and boost profitability with improvement tips around
Did you know that research finds 85% of successful data breaches target the top 10 known vulnerabilities? That isn't the news here though. What is news is that all of those breaches could have been prevented because patches were available. The companies impacted had not updated their patches. Now you know why regulators are focused on something as mundane as asking about patch updates during IT exams. Educating employees and customers about the myriad common cybersecurity threats that community banks increasingly face is critical. According to Chicago Fed research, there are 7 cyber threats or cyber-related risks that are the most
When you dig into the fields of the agriculture industry, a whole lot of information can be found. For instance, did you know that farming began in 10,000 BC, figs were one of the first cultivated fruit crops, bananas are the #1 fruit crop in the world and 4th largest behind wheat, rice and corn. Also of note, the US government defines a farm as any establishment that produces and sells (or would have produced or sold) $1,000 or more of agricultural products during the year. Finally, for every $1 spent on food, farmers take home 12 cents for the
Research by Venture Beat finds 51% of people now say a business has to be available to them 24 hours per day and 7 days per week. They want their questions answered when asked. Further, almost 46% of people these days say they would rather contact a company using messaging than email. People want direct, 2-way communication. Finally, consider that eMarketer predicts that in the next 2Ys, 65% of the global population will be using messaging apps. This is why we plan to discuss chatbots in more detail today. First, a chatbot is basically a software program that has a conversation
Research by McKinsey around how workers communicate and collaborate using social technologies designed to boost productivity and interaction is quite interesting. It broke down the average workweek by percentage and found the top three were role specific tasks (used up about 39% of the time), reading and answering email (28%) and searching and gathering information (19%). Coming in dead last at only 14% was communicating and collaborating internally. Imagine the impact on your bank if you could get collaboration moved higher on this list. Running any business, including a bank, is a collaborative effort. That is why it is a
Bankers are painfully aware that the Dodd-Frank Act (DFA) is 2,300 pages long. Those resulted in 400 new rules and mandates, which, if history is any guide, average somewhere around 20 to 25 pages each. So, all told the burden to bankers who had to read the Act and all of the new rules/mandates, along with changing policies, procedures, adding employee training and dealing with a host of other issues around this has been about like a small bug being stepped on repeatedly by a large herd of elephants. That is why community bankers, who have limited staff and resources,
Bankers love money because it is deeply embedded into the business of banking itself. Things you may not have known about our US currency are: the $10,000 bill is the highest denomination ever circulated by the federal government; the very first US coins were made in 1792; about 94% of bills are contaminated with bacteria; the $1 note makes up about 45% of currency production; and a $1 bill has 13 arrows, 13 leaves (in the olive branch), 13 stars and 13 stripes (on the shield) - all there to represent the original 13 colonies. The US dollar (USD) has
Today is St. Patrick's Day, so be sure to wear blue. That's right, an interesting fact we dug up was that St. Patrick was partial to a light shade of blue. The color green only showed up after this event was linked to the Irish independence movement in the 18th century. If that isn't weird enough for you, consider as well that St. Patrick wasn't even Irish, but was British. Now you know. As your banking team gets ready to celebrate St. Patrick's Day, we take a moment to talk about how the industry is using biometrics. While no one is
Ok, we don't want to freak you out, but we came across an interesting story about researchers at MIT who have created a robot controlled by human thoughts. That's right - this robot responds to commands triggered by thinking alone and does not need electronic or voice commands. Given all the weird stuff people think about during the day, we wonder how these robots will someday respond. While not as cool as think-moving a robot perhaps, almost all community bankers we know are worried these days about how best to respond to the risk of cybersecurity. If you are leaving this
New things are launching all around us all the time it seems. Point of fact is the latest update for Google Assistant. This voice enabled software now reads your text messages, reads the names of senders, manages conversations and even replies to conversations. Speaking of new launches, consider that in a good news story for community banks, new businesses (particularly small ones) are being launched at a rate not seen since before the last recession. According to data from the Kauffman Foundation, the US produced 330 new entrepreneurs for every 100k people, as the nation recorded the 2nd year in
There is an old joke about time that we modify here for bankers. Why did the banker put a clock under their desk? They wanted to work overtime. While that is a sad joke at some level, perhaps some of you cracked at least a bit of a smile to start your day. Speaking of time, we take a look today at what happened last year in banking from the perspective of the latest financial data. We did some analysis using Q4 data recently released by the FDIC to give community bankers more insight. The FDIC headlines pointed out that the
Research by McKinsey finds the typical personally owned car sits idle 85% to 95% of the time. Given the average cost of a new car is about $34,000 that is a huge asset to just leave sitting around. Also of interest perhaps, in the next 10Ys to 13Ys (by 2030), it is estimated driverless cars could account for up to 20% of total passenger miles globally. We just found all of this interesting so wanted to share it with you this morning. Speaking of interesting changes happening now that will impact the banking industry in the near future, bankers are closely
Research by SuperOffice finds the top benefits businesses said they hoped to achieve using a customer relationship management (CRM) solution were: improve customer service (74%), improve customer satisfaction (66%), improve customer retention (56%), increase sales (54%), generate new business (53%), share and distribute data (48%) and market products/services more (37%). As with these businesses, bankers also want to track their customers and market to them more effectively. That is why CRM solutions have grown over the years. Although the financial industry has lagged other industries in some cases, that may soon change. That's because JPMorgan, one of the giants in
JD Power looked at what mobile banking features deliver the most satisfaction to customers. Their research found those things that had the biggest positive impact were: special offers (54%), person to person electronic payments (47%), banking alerts (42%), paying bills (37%), checking balances (35%), transferring funds between accounts (35%), finding branch or ATM locations (24%) and depositing checks (15%). Now you know what to talk to your core provider about the next time you bring them in for an update on system enhancements. Community bankers hear day in and day out about the benefits of mobile banking. Yes, it is what
Here is an interesting statistic by Cisco - 60% of consumers in the US would ride in a driverless car and 48% would let their kids ride in such a car. Meanwhile, research by NerdWallet finds the main reasons men don't like driverless cars is because they are too expensive (63%) and they take the fun out of driving (44%), while women are also concerned about them being too expensive (64%), closely followed by not being safe (55%). Google started the autonomous car phenomenon some years ago and through 2016 had clocked over a million miles. Many other players have
We are intrigued by science and technology, so today we lay some info on you around artificial intelligence (AI). For starters, AI is growing very quickly and there are some things community bankers might want to know about it because it will definitely impact banking. For instance, a survey of corporate executives found 32% say voice recognition software is the most used type of AI in their workplace. Research by Gartner projects AI bots will power 85% of all customer service interactions by 2020 and 20% of business content will come from AI by next year. Now that we have
Fake news is all the rage right now as a discussion point for the media. That's why we found research by Stanford that looked at this very subject so interesting. It evaluated the ability of students to assess information sources, distinguish ads from articles and separate neutral news sources from biased or fake ones. Some of the most shocking results: 80% of middle schoolers believed sponsored content was a real news story, 80% of high schoolers found it extremely difficult to determine whether a picture without attribution they were shown was legit or fake (they simply accepted it as fact)
Snails sure are weird looking critters. We all know that, but you may not know they are related to shellfish, there are about 150,000 species of them, they are not the same thing as a slug (which has no shell), and they speed along in your garden at a whopping 50 yards per hour (so it would take them 35 hours to go 1 mile). We bring this up not only to educate you about snails, but also because the banking industry has been traveling along at a snail's pace toward faster payments. Along with a group of the largest global
There is a western joke that goes "A cowboy rides into town and shoots an artist." The sheriff asks him, "Why did you do that?" The cowboy answers, "I thought he was going to draw." Now you know why we are bankers and not comedians, but hopefully you enjoyed this bit of humor. The growing importance of financial technology (fintech) in banking has given rise to partnerships between banks and fintech firms. While these firms can deliver some slick new services, some are lightly capitalized, may largely ignore banking regulations, are brand new companies without a track record or may change
Managing cashflow is something banks and businesses do every day. That is why we were surprised to see research by PYMNTS.com that found 90% of companies across Europe, Middle East and Africa regions do not have a transparent view into their cashflow. Meanwhile, back here in the US, research by Atradius finds 33% of companies in the US carry invoices in accounts receivable that are 90 days past due. In banking, cash management products and services generate as much as 33% of overall revenue, but until recently, some community banks have been remiss in measuring or closely monitoring such programs. Most