Recent Posts by John Mateker

How CECL Impacts the Financial Industry
How CECL Impacts the Financial Industry
Posted by John Mateker on Aug 21, 2018
Financial Institutions (FIs) have accounted for loan losses the same way for 40 years by using the “incurred loss” model. In the near future (2019 or 2020), FIs will change their loan loss accounting methodology to an “expected loss” model. The ...
Five Tools to Help Improve Operational Efficiency
Posted by John Mateker on Aug 7, 2018
The Introduction to Operational Efficiency blog introduced the Efficiency Ratio and its importance to financial institutions (FIs). However, there are several other tools that an organization can use to help improve their overall operational ...
How to Figure Out Your Efficiency Ratio
Posted by John Mateker on Jul 31, 2018
Financial Institutions (FIs) seek to operate at peak efficiency levels. For FIs, a fundamental ratio exists that helps define what operational efficiency should be, the Efficiency Ratio, which measures cost to revenue. It tells FIs how much money it ...
Loan Origination Processes and Challenges Part 3 – Commercial Loans
Posted by John Mateker on May 22, 2018
For many financial institutions and, in particular, community banks, commercial loans represent the life blood of the organization. Commercial loans provide a key ingredient in determining organizational profitability. The loan origination process ...
Real-Time Payments are Coming to America
Posted by John Mateker on Apr 17, 2018
In November of last year, The Clearinghouse (TCH) demonstrated the first Real-Time Payment, or RTP as their product is known within the U.S. While the payment was only for $3.50 and the accounts at the two counter party banks belonged to the same ...
Loan Origination Processes and Challenges Part 2 – Mortgage Loans
Posted by John Mateker on Mar 20, 2018
  In Part 1 of Loan Origination Processes and Challenges, I tackled consumer loans. In this blog I will address mortgage loans.  The regulatory environment has been a huge influence on how mortgages are processed today. TRID (TILA RESPA Integrated ...
Loan Origination Processes and Challenges Part 1 – Consumer Loans
Posted by John Mateker on Sep 15, 2017
Note: The loan origination process is often a complex process requiring numerous handoffs between front and back office processes. The process also differs somewhat by loan type. Rather than provide a broader generalization of the end-to-end value ...
Importance of Employing Diagnostics in Uncovering Potential Issues
Posted by John Mateker on Feb 2, 2017
As humans, we rely on medical diagnostic tests to help uncover potential health issues. Through annual physicals we can uncover issues related to diabetes, cancer, heart disease, and other medical issues. In my own case, blood tests performed during ...
Has Budgeting Become a Lost Art?
Posted by John Mateker on Jul 29, 2015
Way back in early 1983, I was promoted to my first management position in a bank, Research and Adjustments Manager. It was an exciting time for me. I remember being very proud of the fact that I had moved into a managerial role faster than most of ...
Using the General Ledger to Improve Efficiency Ratios
Posted by John Mateker on Apr 24, 2015
In my first blog, I defined what an efficiency ratio was and introduced some tools that organizations often use to help improve their overall efficiency.  In that same blog, I suggested that we would delve into each of the tools in more detail in ...
Operational Efficiency Defined
Posted by John Mateker on Feb 24, 2015
Introduction to Operational Efficiency Organizations, and in particular, Financial Institutions seek to operate at peak efficiency levels. But what is operations efficiency and what does it mean to be efficient? Investopedia.com defines Operational ...