profitability
Whitepapers
Jan 24, 2024
How community financial institutions can maximize their relationships and compete in the deposit rate environment using profitability analysis and relationship modeling.
Mar 1, 2022
Effective customer profitability analysis — covering both current profitability and lifetime value — lets you target profitable customers, cross-sell effectively to existing ones, and migrate customers to more profitable products.
Case Studies
May 1, 2018
Learn how FCB Bank uses PCBB’s relationship profitability solution, Profitability FIT, to more effectively price loans, offer additional services and encourage loyalty.
Apr 14, 2022
Traditions Bank selected PCBB and Profitability FIT as they faced many business challenges including not pricing business loans competitively.
Webinars
Jan 27, 2021
Virtual roundtable led by PCBB's profitability expert, Janet Leung, to discuss proven and peer-tested strategies to improve profitability. The event showcased a panel of community financial institution executives that have championed customer profitability.
Mar 12, 2024
When it comes to pricing deposits and loans in a competitive market, CFIs must correctly strike a delicate balance between each customer’s needs and their own profitability. Relationship pricing, based on customer profitability, can play a critical role in determining the best loan structure and deposit rates to maximize a customer’s lifetime value to your CFI. We provide insights on what factors to consider as you price products based on customer relationships, as well as the impact of adopting relationship pricing on your institution.
Jan 29, 2024
Without the right tools and analytical approach, customer data is unlikely to have any significant impact on CFIs’ overall profitability. But when artificial intelligence is used to help segment data into meaningful information, there are multiple ways it can be used to help organizations enhance their relationships with existing customers and boost their overall profitability.
Aug 18, 2022
The next great boom in refinancing will likely be in CDs and other deposits, which are vulnerable to customers who decide to pay penalties and reinvest at higher interest rates. A rising-rate environment is also a potentially fruitful hunting ground for fintechs and neobanks, which already offer higher rates than traditional institutions. We discuss three strategies to help CFIs hold their best customers and stress test for CD and deposit losses.
Dec 11, 2023
2024 looks to be another challenging year. We discuss ways that CFIs can continue to grow and sustain profitability in an uncertain world by optimizing the value of their tech spend and data, pursuing key growth areas and revenue streams, and focusing on leadership and talent.
Nov 14, 2023
Bank bottom lines have started to slip. The challenge going forward is to maintain favorable results by actively managing risks. We unveil four threats to your profit in the current market and how they’re already impacting the banking industry.
Nov 1, 2023
Business loan automation isn’t just convenient for customers — it’s beneficial to CFIs, too. From increasing efficiency to strengthening borrower and employee relationships, we review how adopting a digital loan application process can do so much more than just speed up the approval process.
Oct 26, 2023
Autorenewals and hidden language within contracts aren’t just a headache for consumers — they exist within the third-party relationships that CFIs have as well. Taking the time to review outdated contracts and redundancies within all aspects of your organization can lead to significant savings and a better overall service experience for your customers.
Aug 1, 2023
As financial institutions strive to identify deposit rates to help them remain competitive and profitable, customer profitability modeling offers greater transparency regarding when higher deposit rates do and do not make sense for banks’ bottom lines.
Jun 26, 2023
CFIs have a treasure trove of customer data, including payment data. By analyzing such information, you can more effectively offer personalized marketing messages that customers have come to expect. We explore how you can better leverage your customers’ payment data.
Jun 21, 2023
As CFIs seek to maintain active lending portfolios within an environment where they must deal with both rising interest rates and competition, risk-based pricing has become increasingly important, particularly for commercial lending. We discuss best practices for implementing risk-based loan pricing with commercial lenders at your CFI.
May 16, 2023
Deposit drains, rising interest rates, and tougher times for business loans put pressure on CFIs’ bottom lines. Profits promise to be tougher to generate in 2023. We review the current state of deposit growth.
Sep 1, 2022
Could a subscription model take the place of à la carte bank fees? We explain the pluses and minuses of that business strategy, as well as different options to bring the subscription model experience to your customers.
Sep 27, 2022
CFIs would do well to collect and analyze data on customer behaviors and spending habits — not only from their own systems, but also online portals and apps, as well as their partners’ APIs in an open banking model. We discuss some opportunities.
Oct 5, 2022
Data analytics offer community financial institutions an opportunity to increase customer engagement, improve profitability, and grow revenue. We take a look at some of the analytics capabilities that can deliver on this promise and give you some tips on how to build them.
Dec 15, 2022
We interviewed PCBB’s President, Mike Dohren about the key trends he expects CFIs will need to look out for in 2023, including the impact of a slowing economy, the continued rise of disruptive tech, and key regulatory changes.
Jan 24, 2023
Data mining has become increasingly important for tailoring products and services to the needs and desires of customers. But not all data is created equal and CFIs should take steps to utilize customer information that others do not have access to.
Feb 27, 2023
By offering wealth management services, CFIs find they can provide a one-stop shop to handle more of their customers’ financial needs, ultimately building loyalty. Institutions can develop their offering by building their own teams or through partnerships/outsourcing. We give you some examples of organizations that have succeeded with these different models.
Mar 1, 2023
Due to inflation and rising interest rates, liquidity is tight, and is expected to get tighter this year. Effective liquidity management strategies can help CFIs take advantage of a more attractive rate environment. Here are a few ideas that may help.
Apr 20, 2021
Chase Bank found that 80% of surveyed respondents between 18 and 65 years of age prefer digital banking to banking in-person. As the digital age continues and community financial institutions look for digital solutions, effective vendor management will be critical for bank profitability. We bring you five vendor management strategies to help.
Apr 27, 2021
Rising inflation is a hot topic these days. Bankers are watching it closely to see its effects on certain market sectors, and subsequently, on its influence on their margins. Join us as we delve into what economists are saying and how interest rates could be affected. What are the implications of these trends for community financial institutions?
Apr 30, 2021
Subscription banking is still not widespread. However, there are many customers who subscribe to other services, such as Netflix, and are familiar with this business model. Subscription banking may make sense for some community financial institutions to increase fees in a way that many customers could accept. We discuss how customers view fees, how this model could promote loyalty, and provide a few examples of financial institutions that are doing it.
May 3, 2021
Financial institution profitability does not just depend on the customer, but on your officers too. Ensuring that officer incentive plans are tied to your institution’s goals will facilitate overall performance and profitability. We give you the steps to take including designing and reviewing incentive plans, making adjustments as necessary, and using officer feedback.
Nov 8, 2021
The S&P 500 bank index rose 2.6% in October, in large part due to the increase in bank profits. Yet, these profits may be short-lived in the current low NIM, low lending environment. We discuss the challenges that financial institutions are facing and explain how some are generating revenue despite these challenges.
Dec 8, 2021
Despite consumer confidence remaining subdued, consumer spending is up 8.1% in 2021 and is forecasted to grow by 3% in 2022. Recently, there has been a shift in consumer spending from durable goods to services, which could lead to strong growth among these business customer segments for community financial institutions. We provide three strategies to strengthen relationships with those customers through the recovery.
Mar 26, 2021
Community financial institutions have used customer referral programs successfully for years. But now that things are starting to feel more normalized, maybe it is time to take it up a notch. We address how to do that by automating your referral program and testing rewards.
Feb 18, 2021
Digital disbursements give businesses a smooth and immediate payment process. With global digital payments expected to hit $7.64T by 2024, opportunities for businesses to seamlessly make payments is ramping up. Community financial institutions can help them while finding benefits, such as reducing expenses, increasing transparency, generating fee income, and assisting with customer profitability.
Feb 11, 2021
Customer profitability is even more important these days as CFIs are squeezed on margins. Knowing what your customers want and providing them with creative offerings to help will cement their relationships with your institution. Taking a holistic view of your customers will then allow you to more effectively value price the relationship for the greatest customer profitability.
Jan 25, 2021
By segmenting your PPP customers based on their needs for the funds, you can better determine customer profitability. We explore the different approaches for 3 customer segments, based on the intended use for PPP funds.
Sep 11, 2020
Most bankers are looking to cut costs these days. We cover two big areas that can help.
Sep 4, 2020
Our readers asked us about rethinking security plans, attracting Gen Z customers, and customer profitability. We provide our insight on these topics.
Jun 9, 2020
Not every community financial institution counts wealth management services among its offerings. Yet, if you do, now may be the right time to review this service for greater fee income.
Jun 19, 2019
It doesn't appear that environmental investing and initiatives are going away any time soon. We show some interesting ways banks are going green.
Jun 17, 2019
Community bankers support medical professional customers already. However, many in this group need special attention, since their education did not include how to grow their practices, let alone just run a business.
Jun 12, 2019
In this competitive market, it is clear that banks need to focus more intently on customer engagement. We provide you with the top four ways to do this.
May 30, 2019
Can Marie Kondo, the Queen of Tidying-up, provide bankers with important lessons on efficiency, performance and profitability?
May 13, 2019
Forty percent of new entrepreneurs in the US are now women. Yet, they often don't apply for loans. Are there ways to help these business owners grow?
Mar 28, 2019
The popularity of HSAs has exploded and roughly 30% of people within the workforce now have them. They can be an attractive line of business for community banks.
Mar 6, 2019
Improving customer retention can also enhance customer profitability. You may want to consider some of these ways to boost both.
Sep 13, 2018
In an era of rising costs, it can be tempting to look at an underused branch and consider reducing hours. However, you may want to consider these things before you do.
Sep 6, 2018
Wondering how to keep your deposit customers happy while interest rates rise? Companion deposit accounts may be the answer.
Aug 8, 2018
Since a merger might not be the best strategy for every community bank, we provide a brief overview of the current situation and offer a few ways you can grow without it.
Jul 25, 2018
Banks are switching from product-centric pricing to customer-centric pricing to help attract and retain profitable customers. We tell you how that works.
Jun 13, 2018
FDIC's first quarter 2018 banking profile includes a breakout on community bank performance. We provide you with the highlights.
Jun 12, 2018
LIBOR is the largest floating rate index in the world and underpins an estimated $200T in financial instruments. Today, we look at how banks can leverage its increase.
Jun 1, 2018
With technology and financial literacy outreach, several community banks are finding it easier than ever before to attract the underbanked and unbanked. We show you ways to do this.
May 3, 2018
Farmers are struggling these days with low market prices. Some advice to help you with your agricultural business customers.
Feb 5, 2018
With the new tax plan, there are changes in tax rates and deductions. Is a C corporation or Subchapter S corporation structure best for your bank now?
