How does Bank Consolidation Impact Product Pricing?
How does Bank Consolidation Impact Product Pricing?
Posted by Tommy Adams on Oct 2, 2018
Consolidation is prominent in the banking sector, demonstrated by an accelerated rate of acquisitions over the last few decades. The number of U.S. chartered commercial banks has fallen from 14,250 in 1986, to 8,460 in 2000, to now approximately ...
Non-Interest Income, More than Courtesy Overdraft
Posted by The Mad Banker on Sep 25, 2018
Non-interest income is increasingly important for community banks and credit unions, despite being a much smaller proportion of total revenue compared to interest income. Financial institutions (FIs) rely on non-interest income for everything from ...
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 ...
The Staffing Conundrum
Posted by Mike Emmons on Aug 14, 2018
A popular theory has suggested that traditional branch locations will be completely eliminated once mobile and online channels allow for customers to complete all financial service needs and transactions. Despite this theory, community bank and ...
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 ...
The Evolution of Banking Delivery Channels
Posted by Stephanie Jordan on Jul 24, 2018
As a banking customer it’s safe to say that the way I’ve banked has changed drastically since I opened my first checking account. I remember having to physically take my paycheck to a branch every two weeks for deposit. Eventually, I was no longer ...
Fintech: What are the Real Threats to Financial Institutions
Posted by Harry Brammell on Jul 3, 2018
Community bank and credit union executives have decisions to make in an evolving financial services industry where technology has changed the user experience. The shift in consumer preferences toward online and mobile banking is growing, and fintech ...
Retail Banking Trends – The Universal Banker
Posted by Chet Sanders on Jun 26, 2018
Many aspects of the branch banking environment are experiencing rapid changes. Spurred by decreased net interest margins and income during the financial crisis, financial institutions (FIs) attempted to shift the skill set of branch employees from a ...
How Rising Rates Are Affecting the Fixed Rate Mortgage Industry
Posted by Matt McCall on Jun 12, 2018
Throughout 2017, Janet Yellen, the former chair of the Federal Reserve, and the Fed raised the target Fed funds rate by 25 basis points in March, June, and December. To date, Jerome Powell, the recently appointed Federal Reserve chair, and company, ...
Are You Going Digital? Lending 101
Posted by Sean Swift on Jun 5, 2018
The lending landscape, as a whole, continues to grow every year. It is estimated that by the year 2021 approximately $62.84 billion in new personal, small and medium enterprise, and student loans will be originated. According to a recent S&P Global ...
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 ...