Keeping secrets seems to be easy for some people and difficult for others. For example, surveys finds: 10% say they cannot keep a secret period; 50% say they often feel the need to offload secrets to someone else; and the biggest secrets people keep involve sexual behavior, personal story, extra relational thoughts, romantic desire or a family detail. Don't look now, but in banking the world of secrecy is covered in a big chunk by the Bank Secrecy Act (BSA) that covers anti-money laundering (AML). Here, community banks will want to take notice that regulators are stepping up enforcement of...
You have to love the way the government operates sometimes. Take for instance the fact that Fish and Wildlife has a dedicated page detailing how they count and estimate bird flock sizes. Apparently taxpayers seem so interested in this that they even have a calculator where you can test your own counting skills across a multitude of flock size ranges. While most bankers probably don't have time to play the bird flock counting game, everyone has time to count the number of customers on hand, those that leave and how frequently they leave. Perhaps as it is with birds, figuring...
Here's a thing. Without looking, which animal weighs more - the elephant or the hippo? If you guessed the elephant give yourself a point. If that one was too easy, we next ask whether the rhinoceros or the giraffe weighs more. Ok, that one is a trick question because the top five in order are: African elephant, Asian elephant, white rhinoceros, giraffe and black rhinoceros. Have fun today as you challenge your lunch mates to this test.If tests aren't your thing so early in the morning, we note that community banks and all companies can also sometimes be tested by...
Insight is about getting an accurate and deeper understanding about something, while inquiry is the act of asking for information. So, on that note we want to welcome you to the second issue of a new BID feature we call "Inquiry and Insight." For those who may have missed Issue #1, you can read it here.This format allows us to more broadly share specific questions we receive from our bank clients, regulators and other industry professionals. On a monthly basis, we publish the questions asked most often or most relevant to current issues, as we do our best...
A chief marketing officer (CMO) survey of business-to-business (B2B) firms by Deloitte, Duke University and the American Marketing Association found some interesting things. Top challenges are: driving growth (37.5%); delivering a powerful brand that breaks through the clutter (14.8%); securing marketing budget (11.4%); providing ROI of marketing (10.2%).Many of these issues above also impact community banks. Certainly, today's marketing tends heavily toward the digital, with websites and Facebook pages vying for customers' attention. If you think back on your own marketing memories, though, you might find that efforts made via traditional media -- radio, television, and print -- are much...
Gentrification is the term used often to depict the process of affluent people moving into and renovating deteriorated urban areas, while potentially forcing the relocation of established residents and businesses. Today, we focus on the impact of gentrification on commercial real estate (CRE) lending for community banks and how a new code of conduct may affect it. Fueling the expansion of gentrification, displacement financing, is when a speculator gets a CRE bank loan based on the expectation that rents will increase. Thus, rents are raised and lower income tenants are often evicted, making room for higher income tenants. This is...
The Oxford Dictionary points out that the inventor of the Morse code, Samuel Morse, needed to know which alphabet letters are used the most often. He found the top 7 are E, T, A, I, N, O and S. Curiously, the letter B ranks 20th of 26. We bring this up because some banks are trying to determine whether it makes sense to become a B corporation or not. Sure, you slip down the alphabet from Sam's perspective, but it may still be a worthy option. A B corporation is a business that's been certified for following best practices in...
Doing some quick math, we can figure out that at the end of 2014 there were 6,509 FDIC insured financial institutions and as of the end of 2018 there were 5,406. We then look at the number of M&A deals for each year and we find there were 278 in 2015, 241 in 2016, 255 in 2017, 259 in 2018 and an annualized 220 for this year. Take all of this together and throw it in a blender and you come out with a 4.3% median for each year in question. It looks like the big thumb rule of 1%...
Experts will tell you that as a homeowner, the top five plumbing issues you may face are blocked drains/toilets, burst pipes, frozen pipes, leaky faucets and water heater installations. Now that you know you can better prepare for the inevitable.In banking, when one thinks about the top issues around liquidity, the mind quickly goes to how easy funding is or is not. It also may zero in on how quickly assets can be converted into cash in case of emergency. Attracting deposits is particularly important in the current economic climate, which is one of growing demand for loans. About 91%...
The Census Bureau reports there are about 5.6mm employer firms in the US. By size, those with fewer than 20 employees (small) made up 89.0%, while those with fewer than 100 employees (smaller-medium sized) accounted for 98.2%.It's a well-established fact that small and mid-sized businesses (SMBs) are among community banks' most lucrative and most loyal customers. It is also interesting that, based on growing research, businesses started by immigrants to this country may represent the SMB segment most worth cultivating. Earlier this year, the Kauffman Foundation released a report that found immigrants to the US now make up
Marie Kondo, the Queen of Tidying-up, is now cleaning up with her little decluttering homilies. Her books fly off shelves and her television show is becoming a binge-watching favorite. It seems everyone is suddenly caught up in Kondomania.Maybe it's time to give your community bank the Kondo treatment, too in order to simplify and streamline. Are your storerooms cluttered? Are your IT systems burdened with outdated programs and information? Do you hang onto old hardware and software long after you've bought new stuff? If you can see echoes of your overstuffed attic in your bank branches, you may be ready
Dictionary.com says "opportunity" is a set of circumstances that makes it possible to do something. Bankers love opportunity and community bankers are especially adept at doing positive things in their communities regardless of the circumstances.In the world of the IRS, opportunity zones exist and many went virtually unnoticed when the Tax Cuts and Jobs Act became a reality in 2017. At that time, everybody was focusing on refunds and the large tax benefits offered to companies. But, now that the dust has settled, banks are turning to page 130 of the Act. There they will find a federal tax incentive
Researchers at Ohio State University created a computer program that took 5,000 photos of people making faces in response to statements like "you smell a bad odor." They found humans can make 21 different facial expressions, so gone are the days of simple emotions, it seems. In the world of banking, some may say a personal way of relating to customers is soon gone too. For many years, several community banks avoided leveraging digital banking in favor of relationship banking. That still makes some sense, but digital and human activities have evolved so bankers need to as well. Consider a
Yet another Bank Director survey of board members and management finds 72% of banks surveyed said they had not experienced a data breach or cyberattack, but 62% said their board did not have at least one cybersecurity expert member and only 49% said they had a full-time chief information security officer (CISO). Banks are working on this, but given the move towards more fintech and banktech, this is one area we would expect to see a growing emphasis with all banks going forward.There has been no shortage of attention paid to the rising volume of cybercrime and its impact on
A recent Bank Director survey of management and directors finds some of the top compensation challenges are: managing compensation and benefit costs (44%), tying compensation to performance (40%), succession planning (37%), recruiting commercial lenders (31%) and retaining key people (29%). Let's face it. Whether dealing with compensation-related issues, risk or something else, banks have a lot to manage. One more thing banks must manage is the impact on all things banking due to the 2021 transition from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR). This is no small task, since it is estimated LIBOR
Growth in online retailers and a shift in customer buying behavior has pushed some companies like Sears, Toys "R" Us, Payless Shoes and others to downsize or close their doors altogether. Yet, as they exit locations, businesses like Planet Fitness, Ashley Furniture, Big Lots and others have moved into those old stores and made them new again. For bankers, the turmoil in retail never seems to end and staying to top of trends and risks is a full time job. However, just because some retailers close doesn't mean all of your loans in this sector to all types of retailers
The word remote can be used in many different ways. For example: you can work remote, you can use a remote to change television channels, when you were a kid you probably at one time or another drove a remote control car, and perhaps more recently you may have used a remote to control a drone. In the banking world, almost everyone has also played with remote deposit capture (RDC) too. This ability to scan checks on mobile devices or PCs and deposit them into the bank has revolutionized check deposit. Along with that though, it has also created new
Scientists say sleep talking (somniloquy) happens when a person talks while asleep, but is not aware of it. Anyone can experience sleep talking, but it is usually brought on by things such as stress, alcohol, fever, and daytime drowsiness. People like to chat with one another whether they are awake or asleep. In banking, another sort of chatting through chatbots has become increasingly sophisticated.Chatbots are starting to break down consumers' initial skepticism about interacting with banks using these tools. As a result, chatbots are now fairly prominent on bank websites, offering customers more seamless assistance with everything from website-related tasks
Just locking your doors can save you a lot of problems, when it comes to the risk of burglaries. Statistics show that 30% of burglars enter a home through an unlocked door or window, so locking entry points can help you avoid such an issue.In banking, locking things can make sense too. Consider the simple forward rate lock agreement. These keys to banking success are designed to help protect your bank and borrowers from the risk and uncertainty of changing interest rates. To do a forward rate lock, you will need to execute a simple contract known as a forward
When it comes to weird facts for you to know, we always try to be a good source to liven up your discussions at the bank. For example, did you know it is physically impossible for you to lick your elbow, a jiffy is 1/100th of a second, and a sneeze exits your mouth at 100mph? Well, now you do, so have fun today.One area in banking that is necessary, but no one would call fun is regulation. Sure, it is part of the business, but it creates a host of long-time and emerging issues for banks when one looks
The Department of Agriculture reports the average cost of raising a child to age 18 is $233,610. If parents thought they were done there though, consider a Bank of America survey of parents with at least one child age 18 to 34Ys old. It finds parents pay the following bills for their kids: 23% pay food and grocery bills in full (37% pay some); 32% pay the cell phone in full (22% pay some); and 23% pay rent or a mortgage in full (13% pay some). No matter where you are with your kids if you are a parent, or
Did you see the Employee Benefit Research Institute (EBRI) research that found 82% of retirees are optimistic about their ability to live comfortably in retirement (near all-time high), while 67% of those still working are confident in their financial prospects during retirement (near all-time high). It is just nice to see people feeling so good about things.One area where banks may feel good is figuring out even better ways to leverage technology to help with compliance. Today, we update you on artificial intelligence (AI) and its AML uses.Despite the hype around AI, 63% of bank executives say their institution hasn't
The SBA reports that as of the end of last year, there were just over 30mm small businesses in the US, representing about 48% of total employment for the country. By industry, the greatest numbers of employees at small businesses were: health care and social assistance (15%); accommodation and food services (14%); retail trade (9%); manufacturing (9%); and professional, scientific and technical services (9%). Lots of customers for community banks so good luck out there!Another interesting thing about small businesses is that recent data suggests those owned by women are being established and growing at unprecedented rates. Notably, 40% of
A new survey by Merrill Lynch/Age Wave finds 70% of adults, ages 18 to 34, received financial support from their parents in the last year. In addition, a large 60% said they couldn't afford their lifestyle without such support. It looks like kids may still need their parents, no matter the age, perhaps.For many consumers -- millennials in particular -- setting aside large sums of money to meet savings goals can be tricky. But, automated tools can take away some of the stress. Small amounts of money transfer seamlessly, so over time, consumers are able to begin building their nest
The problem with remote work for your employees could be distraction related. After all, a whopping 23% of millennials still live with their parents, according to Zillow research. So, noise levels at home might not be conducive to such things. Bankers will need to think about the broader context for sure, no matter the path chosen on remote working arrangements.To help you here, we remind our readers that we recently wrote about the growing trend of flexible work arrangements, which includes working remotely. As this trend intensifies, it brings to the forefront the importance of strong cybersecurity practices.
We surfaced data by United Van Lines that looked at customer migration patterns in 2018. Given so many boomer customers of community banks are moving around, we thought you might like to know the top states for retiree destinations (possible deposits) were: NM (43%), FL (39%), AZ (37%), SC (37%) and ID (34%). As boomers continue to retire and move, bankers continue to try to understand the ramifications of CECL. After all, the CECL model represents a massive change in loan loss reserve methodology, and as such FASB has allowed a long window for implementation. Yet, as we are all
For some, retirement is just around the corner, while for others it is quite a ways off. Some interesting thoughts on retirement: experts say you should not withdraw more than 4% of your nest egg in the first year, Social Security is meant to replace about 40% of your pre-retirement income, and 94% of those 50+ say technology helps them keep in touch with family and friends. Good luck to all regardless of age or stage.On the technology front at least, things are moving rapidly forward for people of all ages. That is also the case when it comes to
A CNBC survey asked people what they would do with an unexpected $5,000 bonus. The most popular answers were: pay off debt (34%), save it for short-term expenditures or emergencies and (22%) and invest it for long-term goals like college or retirement (15%). Now that you know, maybe it can help focus some of your marketing messages to customers and prospects.Community banks are always trying to improve their performance and risk profile too, so today we take a look at asset liability management (ALM) programs. Here are 7 things you can do to help ensure your bank meets regulatory expectations.
An Ascend2 survey finds the most effective tactics to use in a marketing strategy are: social media marketing campaigns (53%); content marketing campaigns (48%); search engine optimization (47%); email marketing campaigns (39%); marketing automation campaigns (28%).As you ponder this over your cup of coffee, we also wanted to welcome you to the inaugural issue of a new BID feature we call "Inquiry and Insight." As you will see with these issues, we share specific questions we have been receiving from our readers and bank clients. Questions selected are likely on the minds of other community bankers too. So on a
An AT Kearney survey of global business executives identifies some interesting opportunities this group sees as ways to improve and drive the business forward. Those ranked the highest were: successful adoption of new technologies (37%), successful innovation (35%), improving business model efficiency (35%), and improving strategy execution (34%). We know community bankers work hard every day to improve the business, so we hope this information helps with additional perspective.As your team also works hard to keep deposits in a world of tricky but inevitable transformation, additional perspective might help here too. For those losing deposits to alternative accounts, it might
One major problem with poorly designed surveys is that they can be so dull they produce very weak results. Researchers find that back in 2007 participation rates for surveys ran at about 15% vs. only about 8% now. To increase your chances for a higher response when sending a survey to customers: keep the survey short, be sure the topic is relevant, make questions easy to answer and don't send out too many surveys too often.While some surveys can be dull, bankers know there is never a dull moment with CECL. Things are moving quickly and the timeline is getting
Everyone knows that risk and fear are different things. Yet, people often do not take risks because they are afraid. That is because the human mind twists things around. In short, fear causes you to overestimate a given risk and the absence of fear leads you to underestimate a given risk. Bankers know risk is everywhere and it must be weighed continually because it is just part of the business.If you are like most community banks, communicating your appetite for risk consistently is a challenge. Layer on top of that changes in personnel (both senior management and line officers) and
Data compiled by Statista finds 55% of US adults had money invested in the stock market in 2018 vs. 65% who did as of the end of 2007 (the high water mark of the past 20Ys). An aging population that is more risk adverse and a younger population saddled with student loan debt could be reasons for the decline, but who really knows for sure. One thing we do know for sure--as we round off our coverage of Community Banking Month stories--is that community banks are having a huge impact on their local cities and towns. Today, we highlight banks
The Bureau of Economic Analysis (BEA) looks at how Americans spend their money. The latest report shows we spend about 31% on goods and 69% on services. For services, we spend the most on housing and utilities (27%), followed by health care (25%), financial services and insurance (12%), other services (12%) and food services and accommodations (10%).When people try to figure out where all of their money is going, budgeting is a critical tool. But, these days, time may be becoming more valuable than money, in some instances. As our day-to-day lives have become busier and technology has eroded the
Despite common belief that horses sleep standing up, PetMD says that is just not true and that they only snooze that way. To get deep REM sleep, horses must lie down. They only need 2 to 3 hours though vs. 7 to 8 for humans. Now you know.As horses have a purpose in mind when they lie down, so too do many customers when it comes to what they expect from their bank. Many expect more than great products and services at competitive prices - they expect companies (including banks) to stand for something. In other words, more customers want
There are an estimated 5.3mm hotel rooms in the US and a study by Luxe Digital finds 65% of leisure and 69% of business travelers search online to decide where and how to travel. The Global Business Travel Association finds the following amenities were most likely to influence the business travel experience: a convenient, comfortable hotel (63%); nonstop flights (47%); booking flexibility (36%); paid time off for longer trips (34%); the type of airline carrier (28%) and being able to bring family or friends along (27%).Traveling can be fun or crazy, but hospitality lending can be a good niche for
Historically speaking, hedges have been planted and trained over time to form a barrier or mark the boundary of a property. These topiaries have been used to enclose land as far back as some 6,000 Ys ago. In the banking world, the plant types of hedges are interesting, but the financial ones make executives even happier. Like most financial institutions, banks need a cohesive, overall hedging strategy though to do this right. Financial hedges are a bit like shock absorbers on a car. They can help reduce the volatility or bumps a bank may experience and limit the effect of
A survey of Americans by NBC and the Wall Street Journal looked at social media. It found people are generally negative on social media, with 61% saying it does more to spread unfair attacks and rumors against public figures and corporations. Perhaps even more shocking - 82% said it wastes people's time.We know one thing though, community bankers definitely do not waste a customer's time, and they do plenty to support the cities and towns where they operate. So, as we continue to travel through Community Banking Month, we highlight some more outstanding examples of local outreach by community banks.
Some interesting things surfaced during a recent CNBC HR conference, where panels of leaders discussed the future of work. The CEO of IBM said she expects artificial intelligence (AI) to change 100% of jobs within the next 5-10Ys. Also, the head of HR at Adobe said all companies are going through a digital transformation currently, so HR experts need to build an environment where people are constantly adaptive learners. These are just a few of the discussion threads.Pulling on another thread, we find that community bankers are very focused on their small and medium business customers (SMBs) too. After all,
A Bankrate survey asked people why they found it difficult to save more money. Expenses ranked first at 39%, followed by job isn't good enough (16%), haven't gotten to it (16%), debt (13%), don't know (7%), don't need to save more (6%) and other (3%). As you think about how to leverage the above information to capture more customers, build deposits or help existing customers, we zero in on digital marketing today. Certainly, there are some hard-won tricks to the trade when it comes to conducting successful digital marketing campaigns. More specifically, we share perspectives from community bankers who gave
A CNBC survey finds Americans don't save very much. When asked what percentage of annual income people saved, the results were: 6-10% (25% of respondents); 5% or less (21%), nothing (19%), more than 15% (16%), 11-15% (11%), don't know (7%). To perform at the highest level, bankers know their customers should have a savings plan for every single month.When it comes to banking performance, it also makes sense to set goals and use metrics to track achievement. However, this is easier said than done.Take, for example, net interest margin (NIM). NIM is often used as a measure of performance. The
Merriam-Webster defines biometrics as "the measurement and analysis of unique physical or behavioral characteristics (such as fingerprint or voice patterns) especially as a means of verifying personal identity." It also indicates the first known use of biometrics was 117Ys ago (way back in 1902).We bring this up because Goode Intelligence forecasted in October that there will be nearly 579mm biometric payment cards in use by 2023, and 2019 will see the commercial launch of biometric payment cards.For those who are unfamiliar, biometric payment cards are meant to boost security by embedding fingerprint sensors that capture and match the
When you pay homage to someone, you are giving them a special honor or respect in a public way. It is with that in mind that we continue our homage to community bankers for Community Banking Month. Today, we provide you with stories that show unique and varied ways to engage with the community and give back. Community banks are quick to fill many needs and we honor you all for your tireless commitment to your communities. Years ago, one of Bank Iowa's loan officers navigated successfully through the complex process of US immigration and so he wanted
A Gallup survey finds only 37% of people age 18-34Ys old are invested in the stock market vs. 61% of those 35Ys or older. Researchers say this variance is likely the result of higher student debt, lingering fear from the 2008 market crash and ongoing market volatility. In another sort of investing, having quality employees who are invested in the success of your business is crucial for community banks. Attracting the right employees is not enough, though, as retention is equally (and possibly more) important. According to a Gallup study, experienced and engaged employees with 10Ys+ at a
The Identity Theft Resource Center reports that while the total number of data breaches reported in 2018 declined 23% from the prior year, the reported number of consumer records containing sensitive personally identifiable information (PII) soared 126% over that same period. Overall some 447mm records were exposed in 2018. More than ever, one's identity defines who they are, so it is critical to protect. Identities link to one's job, bank, to businesses and to other people with whom they communicate online. Although not new, crooks continue to advance in their practices to create new synthetic identities for their nefarious activities.
The normal human adult is about 70% water or so. That is a good thing because our organs and body parts need a lot of it. For example, the brain is about 80% water, lungs (90%), skin (80%), kidneys (82%), muscles (75%) and blood (85%). Water is used to regulate our temperature, make hormones, digest food, and lubricate joints, among a host of other things. That's why they say you should drink 10 or so 8-ounce glasses of water each day.Hydrating the body takes a lot of work, but it can pale in comparison to the work customers want banks
Using new technology can be taxing for some, while boosting performance for others. In the world of education, research by McGraw finds technology increases engagement with course materials (77%), professors (64%) and other students (50%). More interesting perhaps, 86% of students say technology helps them be more effective and efficient.In banking, technology tools are critical, but some are helpful while others may be taxing. Today though we look at another sort of taxing situation and that is the impact of the new tax law. Taxpayers are now filing their first returns under the new tax law, and companies are realizing
Parents like to be involved in the lives of their children. Look no further than a survey by the Department of Education that found 87% of parents attended a general school or PTA meeting, 75% attended a regularly scheduled parent-teacher conference and 73% attended a school or class event. Clearly many parents are involved in a variety of ways.In communities all around the US, local bankers know that April is also Community Banking Month. While community bankers are involved in and actively contribute to their communities all year, we wanted to take this opportunity to highlight some of the outreach
There are all sorts of social media behaviors that can help businesses connect better with their customers. A survey by Sprout Social finds those that do this the best include: liking or responding to a customer (55%), showcasing your brand personality (45%), supporting a cause your customer supports (45%), participating in relevant conversations (44%) and highlighting industry or category trends (40%).To connect better with your team working on implementing the CECL standard in the next few years, we offer the following tips too. To implement the standard, your bank will need a dry run to see how your loans and
A survey by Adobe surfaces some opportunity for banks. It asked people to rank things that were the most important to them when thinking about content sent by companies. The most important characteristics were that it be accurate (31%), informative (28%), simple (17%), entertaining (8%), they can interact with it (7%), personalized to me (6%) and beautifully designed (4%). Hopefully, this information helps as you think about the best way to engage and/or refine your approach to your customers. As for bank websites, there is much to do to avoid getting into trouble with the Americans with Disabilities Act (ADA).
Adobe researched a group of Americans to find out how people think about and access various brands. Community bankers will find it interesting that respondents spend an average 8.8 hours each day engaging with digital content. By age category, Gen Z was tops at 11.4 hours, followed by millennials (10.9), Gen X (8.9) and boomers (7.5). Overall, some 53% said they constantly or frequently used multiple devices, with millennials leading at 73%, followed by Gen Z (66%), Gen X (53%) and boomers (42%).No matter your customer groupings, as the data shows, people similarly expect their banks to operate more like
An Adobe survey finds consumers go to multiple places when researching something they want to purchase. While some apply more to a retail setting, banks should note the major ones include: a personal visit (49%); company website (44%); mobile app (16%); over the phone (11%); using home assistants (10%). Also, younger generations use social networks and video channels not only for research but also for post purchase interactions. As you think about your changing customer base from the data above, we also offer some information below related to changes that are occurring with your employees. Here, we point out that
A survey by Harris Interactive finds certain people are off limits when it comes to being an April Fool's target, while others are just fine. Those most people will avoid are: boss (64%), teacher or professor (64%), a young child (56%) and parents (53%). Meanwhile, those that rate at the top of the potential target list: best friends (76%), spouse or significant other (73%), sibling (72%) and teenager (69%). Coworkers rank right in the middle, so as some coworkers may enjoy pranks today while others may not.Speaking of enjoyable events, community banks almost universally enjoy seeing new (de novo) banks
If you want to fry your brain this morning a bit, think about the fact that space and time change when they are affected by gravity and your speed. So, if you are on Mars and someone else is on Earth, time is not the same. Also, the faster you travel, the slower time moves. As you think about that this morning, we shift to the world of M&A in banking and its speed in our current time.To get a handle on things, we take a quick look at data from S&P Global Market Intelligence that finds the number of
Researchers who looked at MRIs and studied people find some of those who go around correcting other people's grammar might just be suffering from a type of obsessive-compulsive disorder (OCD) known as Grammatical Pedantry Syndrome (GPS). Of course, others say correcting poor grammar isn't the disease, but rather not correcting it is. We will leave it to you to decide.Whatever the disorder or disease, banks play a much bigger role in and around healthcare these days. In fact, bank customers and employees faced with rising medical costs have gravitated more toward health savings accounts (HSAs), in some cases. HSAs can
In the age of smartphones, it is easy to forget how far we have come since the first phone was invented back in 1876 by Alexander Graham Bell. Interestingly, Bell suggested people who picked up calls say "ahoy." Also of note, the first phone call was between Bell and his assistant Thomas Watson. Finally, the origin of the phrase to "put someone on hold" came when Bell handed his phone to Watson and said, "Here, hold this." We have come a long way since then in the telephone world and we have also come a long way when it comes
The median age of the US population according to the Census Bureau is about 38Ys old. That is up from a median of 30Ys old in 1980 and only 23Ys old in 1900. Meanwhile, FL has the highest percentage of senior residents 65+ at 20.1%, while AK has the lowest at about 9.5%. If you feel like you aged just reading this, know that only 3.6% of people 65Ys+ are in nursing homes or assisted living, there are 4 women to every 3 men over age 65Ys, but that drops to 4 women to every 2 men over 85Ys. No
Despite the fact that research from the University of Notre Dame finds telling the truth improves your health, humans still lie and start doing so as early as age two. Other research finds Americans lie about 11x each week on average, and people have about a 50/50 chance of catching a lie, when they see it. Finally, additional research seems to indicate one of the best ways to catch a liar is to listen for negative words, over positive ones, and for exclusionary words, which they often use. Also, keep asking "why" if you aren't sure, because liars subconsciously have
We came across an interesting set of data that ranked the deadliest animals on earth for humans. Ranking at the top we did not find sharks (cause 6 human deaths per year) or lions (22). Nor did we find crocodiles (1,000) or snakes (100,000). No, the tiny mosquito hit the top, at a whopping 750k deaths per year. Now you know, so you can better prepare as you wander through life.Speaking 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 change hands in the
Our educational missive this morning has to do with llamas. These critters are part of the camel family, they can weigh up to 450 pounds, are 6 feet tall and are smart enough not to carry more weight than they can handle (they just lie down until you unload them). They also don't bite, but humans should know that llamas can believe humans are also llamas, leading them to spit in your general direction occasionally. We just like the mental picture of a lost llama wandering around a bank branch randomly spitting at people right about now. However, if your
If you like to eat the occasional apple, you might be interested to know that 90% of modern apples trace back to 2 trees in Kazakhstan. If that doesn't do it for you, consider as well that apples are grown in all 50 US states, it takes 2 pounds of apples to make a pie and there are 2,500 varieties of apples grown here. Also of note, apples are a member of the rose family and they ripen 10x faster at room temperature than when refrigerated. Whether it is true or not that apples have some medicinal value and may
Fishing is one of the most popular outdoor recreational activities in the US, but you may not know these interesting facts from The Fish Site we uncovered: catfish have 27,000 taste buds vs. 9,000 for humans; lobsters have longer life spans than cats or dogs and live 20Ys; and the typical fish brain is about 1/15 the mass of a similarly sized bird or mammal. Meanwhile, Statista reports that in 2017, more than 49mm Americans participated in freshwater, saltwater and fly fishing. Many people like to fish it seems, but phishing of another variety is not so popular in banking
When it comes to birthdays, did you know: the most common birth date in the US is October 5; the least common is May 22; almost 2B birthday cards are sent in the US each year; and in a group of 23 people there is a 50% chance that two have the same birthday. You also need to use the right ingredients to make a decent birthday cake.Many community bankers we know have been slowly gathering the proper ingredients to mix and eventually bake that cake known as CECL. For those estimated 5% to 7% who are far enough along
In psychology, one of the most common human biases is known as the confirmation bias. Science finds that humans like to confirm what we already know or think we know. In fact, we will actively favor information that confirms our preexisting beliefs. To avoid this issue, it is important to slow down, think about the decision you are about to make, and openly consider other options, to help alert the brain to avoid this bias.One thing we do want to confirm for community bankers today though is that many small business owners appear to be uneasy about their ability to
When someone gives something to someone else for mutual benefit it is known as reciprocity. Studies in fact, find that when someone does something beneficial to you, the vast majority (90%+) are prepared to do something beneficial in return, even when it was not decided in advance. One easy example is from social media circles where liking a picture sent to you carries with it the unspoken expectation that person will also like a picture of yours.There are many examples of reciprocal arrangements in banking too. Reciprocal deposits, for instance, offer excess insurance. They are not new, but some things
Weighing in at only 3 pounds, the human brain is amazing. Yet, it also changes as you age. At around age 60 or 70 years old, science reports shrinkage starts in the frontal lobe and hippocampus areas where higher cognitive function and new memories are saved. As parts of the brain shrink, communication between neurons can also decline and blood flow may decrease. This can adversely impact learning and other mental activities.We should not be too surprised then when we learn evildoers seek to take advantage of this, and as a result, senior citizens lose huge sums of money to
We have all seen it during our lives. You go to some major event and as the audience continues to clap loudly, the tired performer slowly returns to the stage for an encore performance. We bring this up for our audience of bankers and note the word encore reportedly comes from the French phrase "still, yet, again." As you think about how best to get a work colleague to give you a standing ovation today, we shift our discussion toward customers and more specifically, entrepreneurs. Many people dream about becoming rich like the myriad of technology giants, but it isn't
The official definition of an acronym is "an abbreviation formed from the initial letters of other words and pronounced as a word." Examples abound, but some of the familiar ones are NASA, SWAT and GIF. As you ponder other acronyms, CECL may come to mind. While banks are in different stages of readiness, one thing we have recently heard is that some banks are considering using Weighted Average Remaining Maturity (WARM) for their CECL calculations. This method calculates an annual expected charge-off rate based on multiple historical periods. It then takes that rate and applies it to the remaining
There are a multitude of quotes about being prepared. Whether your favorite is "By failing to prepare, you are preparing to fail" (Ben Franklin) or "Luck is preparation meeting opportunity" (Oprah Winfrey), they all seem to resonate.In the world of banking, management and boards both know that preparation for any regulatory examination is critical, if you are going to keep everything on track and moving forward. This is certainly true when it comes to areas of regulatory focus like the asset liability management (ALM) process, as the Fed is raising interest rates and margins are seeing pressure.To help your bank
The Bureau of Labor Statistics (BLS) reports the median number of years employees have worked for their current employer is 4.6Ys, while those ages 25 to 34 are only at 3.2Ys. With statistics like these, it is not surprising that the days of giving gold watches to employees at retirement have also been retired. As employees are moving around and unemployment is still historically low, the competition is heating up--for employees, managers, executives and key players across the board. To help you in this regard, we explore some recent findings on what banks can do to keep employees happy.It turns
The latest annual global survey of CEOs by PwC surfaces some interesting points for community bankers. For example, the top threats identified for this year include over-regulation (35%), policy uncertainty (35%), availability of key skills (34%), trade conflicts (31%) and cyber threats (30%). These cut across all sorts of countries, but so many apply to community banking here in the US that we thought we would highlight it for you today.Speaking of things to highlight, nearly every community banker we know thinks relentlessly about customer growth and opportunity. Improving customer retention can play a significant role in enhancing customer profitability
Community banks still seem to be underestimating the impact fintechs can have on their lending to small businesses, as only 7% of community banks see fintechs as a major competitor for this business, according to the latest 2018 Community Banking in the 21st Century survey. But, with both fintechs and larger banks aggressively courting small businesses, community banks need to realize that "business as usual" is no longer an option.From major banks such as the Bank of Montreal (BMO) to military insurance and banking provider USAA, there is no shortage of players hoping to lure small businesses away
There are all sorts of fabrics to choose from when it comes to clothing and fashion trends. This year, Vogue says some of the top fashion trends are contemporary oatmeal (beige), tie dye, lace, Seventies-era crochet, fisherman weaves, and macram? appliqu? to name a few. In banking, there are plenty of other trends to take note of, particularly when it comes to person-to-person (P2P) payments. These transactions provide a convenient way to move money and seem fairly rooted in the US financial fabric these days. In fact, some $1T changed hands through P2P systems in 2017 alone. This is a
A survey of small business owners by Infusionsoft finds the biggest marketing challenges these customers say they face this year are: not using digital marketing (29%), finding time and resources for marketing (22%), converting leads into customers (15%), retaining and re-engaging customers (12%) and generating web traffic (9%). Many community banks have programs to help with some of these challenges, so it could be a good time to reach out to biz customers and let them know.Speaking of small business customers, today we focus on those known as digital-first customers. Novantas Research's 2018 Omni-Channel Shopper Survey reveals several