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Fee Income In Lending Is Crucial For Banks

South State Correspondent

Historically, community banks have relied on net interest margin (NIM) instead of fee income to drive return on equity (ROE). For example, 40% of JP Morgan’s commercial banking revenue is derived from fee income, and JP Morgan’s commercial banking division is composed of middle-market and commercial real estate (CRE) lending.

Lending 195
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7 Reasons To Focus More on Hedge Fee Income

South State Correspondent

Many community banks are searching for ways to increase fee income, and many bank CEOs have concluded that fee income is a significant driver of revenue and profitability. We argue that larger banks do not have an inherent advantage over community banks in generating fee income because of their scale.

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Optimizing Loan Duration

South State Correspondent

Customers and competitors are challenging community banks to extend loan duration – borrowers are eager to lock fixed rates before they rise further, and many competitors are happy to oblige. But what are the optimal fixed terms for community banks given today’s interest rate, credit, and liquidity environment? Market Expectation.

Lending 195
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Using P2P Payments To Bank More Of The Unbanked

PYMNTS

She said the global pandemic has simply advanced a movement that has been underway for years, which has sought to provide banking access and digital financial services to underserved communities, mostly through mobile devices. The Cash Culture. Crypto And AI/ML.

Payments 206
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Alt-Lenders Vow Transparency After Prospa Backlash

PYMNTS

Australia’s alternative finance community has vowed to heighten transparency following criticism over Prospa ‘s high interest rates, which caused the FinTech to scrap its initial public offering (IPO). Prospa signed the code alongside Spotcap, Capify, GetCapital, OnDeck and Moula, reports said.

Lending 100
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Saving Main Street: Advocacy Groups Propose New Government Relief Programs

PYMNTS

The poll was conducted by a San Francisco-based advocacy group called Small Business Majority, and its CEO John Arensmeyer has been a proponent of community grants that exist outside of the formal banking system that has controlled government aid up to this point. In comparison, small businesses selling similar products were forced to close.

Maine 142
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15 Minutes With … Jimmy Rasmussen

Independent Banker

I also focus on budgets, loan and deposit growth, net interest margins, quarterly comparison reports, and the banker’s view of his or her local economy. Finally, I focus on economic news in our markets, which include five communities south of Houston. We are staffed by 100 employees, who are very involved in their communities.

Dallas 131