Banker to Banker

10 Ideas For Our Bank We Got From Wegmans

Banker to Banker

LEARNING FROM NON-BANKS Last week we tagged along with The Bank of Charles Town (BCT) crew who, like us, are heavily believers in “cultural tours.” BCT used a series of these tours to kick off their strategic planning season with the purpose of grabbing ideas that could spark creative thinking.

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8 Ways To Attract The Wrong Clients To Your Bank

Banker to Banker

MANAGING BANK CULTURE AND PROFITABILITY Given that strategic planning season is upon us, one key affirmation is to verify if you are targeting not the customers that you have now but the customers that you want.

Two Proven Secrets To Faster Bank Decisions - Part II

Banker to Banker

CRITICAL THINKING In Part I, we highlighted how having too much information about a decision often increases the confidence about the decision but usually doesn’t change the accuracy of the decision.

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How Financial Education Quantitatively Helps Banks

Banker to Banker

THE ECONOMICS OF FINANCIAL LITERACY Many banks put financial literacy education squarely in their Community Redevelopment Act (CRA) effort using the mindset that financial literacy is an affliction of low-to-moderate income households. The reality is, financial illiteracy affects us all.

The Price For Attention in Bank Marketing

Banker to Banker

BANK MARKETING If you are still spending money on print and direct mail, we ask you why? Not only is it hard to track, but it is likely the least effective form of marketing that you can do. While building a brand is good, generating an emotional connection is better.

A Checklist For Any Bank Considering a Payment Strategy

Banker to Banker

Payment Innovation When it comes to long-range strategic planning in banking, what to do about payments, should be in the top five considerations up there with treasury management, capital allocation, risk tolerance, and human capital.

How To Get Conversational For Bank Search Marketing

Banker to Banker

“What do I need to open a checking account?” and “What is the best savings account?” are two trending bank-related searches that are becoming popular. In years past, potential bank customers used to put in a utilitarian “checking account” to search banks offering checking accounts.

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Learn From A Pirate - Negotiating Bank Products With Customers

Banker to Banker

Those Somali pirates are a wily bunch. While pirate attacks off the coast of East Africa are down, the average ransom is up. Most of the increase can be attributed to going after more modern ships and with better negotiating tactics.

How To Become A Better Trusted Advisor In Banking

Banker to Banker

IMPROVING BANK PRODUCT SALES A surge in alternative lenders and intense competition among banks has forced community bank lenders to further differentiate themselves and their institution. Many lenders are switching their professional focus from being a salesperson to being a trusted advisor.

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How Understanding Loan Demand and Credit Quality Will Make You A Better Banker

Banker to Banker

A common line of thinking in the banking industry, especially regulators, is that recessions are driven by, or at least exacerbated by, the supply of credit. Banks, in an effort to stay competitive, tend to drop their lending standards to hit their loan growth targets.

How To Use Goal Gradient Rewards In Banking

Banker to Banker

Put a rat in a maze, and they will speed up as they get near the end as can smell the reward. Forget rats, human sprinters also run the last 15% of a race faster than the previous 30%. Forget athletes, citizens make more donations to a charity as that charity gets closer to its fundraising goal.

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The Status of Commercial Real Estate Values

Banker to Banker

CRE UNDERWRITING Recent data, just released from Real Capital Analytics, shows that since the start of the year (month-end April), commercial real estate (CRE) has appreciated 2.6% in 2019.

Bank Worker Productivity and The Technology Imperative

Banker to Banker

BANK TECHNOLOGY INVESTMENT Back in the 1980s, there were more banks, smaller banks, and little technology. We were still driving checks around, there was no online banking, and networked ATMs was the latest in bank technology.

Do You Really Want To Lend Below A 10% Debt Yield?

Banker to Banker

PROFITABLE BANK LENDING Commercial lenders should be aware of the important factors that drive customer behavior to borrow funds. Our clients borrow from us when they refinance debt, or purchase equipment, real estate, or finance working capital.

Why You Are Watching The Wrong Lending Competitors

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CREDIT MANAGEMENT No doubt, you hear all about how your competitors are winning deals because they are more aggressive when it comes to underwriting.

The Best Way To Structure The First Page of a Credit Memo

Banker to Banker

IMPROVING YOUR CREDIT MEMO In banking, as everywhere else in life, you never get a second chance to make a first impression. The first page of a credit memo is essential for credit analysts, lenders, management, and board members.

Banks That Want A Strong Culture Can Learn From This Netflix Document

Banker to Banker

BANK CULTURE When it comes to corporate culture, many banks know that building a genuine and sustainable culture is like baptizing cats. It’s tough work fraught with many scratches and a lot of moving around.

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Our 7 Question Test To Prevent Bad Bank Technology

Banker to Banker

BANK TECHNOLOGY DECISIONS The largest problem with bank innovation is that we see or hear about a sexy piece of technology at a conference or at another bank and then acquire it.

How To Get Better At Bank Email Notifications and Marketing

Banker to Banker

BANK EMAIL BENCHMARKS Send a bank marketing email out, and chances are 15% never reach the prospect’s inbox. That is not bad considering that it used to be above 25% just a couple of years ago. Bankers have been working hard at collecting email addresses and managing the distribution list.

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The One CRE Underwriting Metric You Are Likely Not Using, But Should

Banker to Banker

More Accurate CRE Underwriting Whenever your bank is looking at underwriting commercial real estate (CRE), you are probably looking at a variety of macro factors such as rent and occupancy trends, absorption, and capitalization rates.

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How To Give Borrowers 30 Years of Amortization In 25 Years

Banker to Banker

LOAN STRUCTURING HACKS One battle currently waged in the banking industry is amortization terms and interest-only (IO) periods. Borrowers often have legitimate needs to extend the principal repayment on term loans to 30 years.

What Just Happened At Finovate Spring 2019

Banker to Banker

Last week, Finovate Spring 2019 took place in San Francisco in which over 270 banks watched more than 60 companies each have seven minutes to impress you with a demo of their technology.

How To Use The Hybrid Loan Structure To Win More Profitable Clients

Banker to Banker

It sometimes pays to be opportunistic in marketing your community bank’s products. There is currently an exceptional market opportunity for community banks to win profitable business from larger competitors.

What Bankers Need To Know About The Yield Curve

Banker to Banker

INTEREST RATE TRAINING Bankers should consider the shape of the yield curve when structuring and pricing loans to maximize return and reduce risk. The shape of the yield curve can also help lenders understand borrowers’ needs and better position the bank against competitors

Does Loan Amortization Matter? [Plus Free Calculator]

Banker to Banker

HOW LOAN STRUCTURE IMPACTS CREDIT Sometimes how we choose to measure something can lead to incorrect conclusions. While mathematically 30 is 50% more than 20, a 30-year amortizing loan is not 50% riskier, or 50% longer than a 20-year amortizing loan

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Changing Payments and Bank Strategy

Banker to Banker

BANK STRATEGY One item that should be on every bank’s strategic horizon is how to adapt to the changing face of payments. If you are one of those bankers that say, “Cash won’t go away in my lifetime,” you could be right.

A Loan Strategy Given Lower Rates

Banker to Banker

INCREASING LENDING PROFITABILITY Many industry analysts are increasingly gloomy on the banking industry, trimming expectations for net interest margin, interest income, and total profits.

Do Lenders Deserve Incentive Pay?

Banker to Banker

LENDER COMPENSATION A CEO of a community bank recently asked us an important question: “why should I pay my lenders any incentive to do their jobs, they already make a good salary?” We hear this question often from different management teams.

13 Of The Most Important Mary Meeker Slides Pertaining To Banking

Banker to Banker

TECHNOLOGY TRENDS Starting in 1995, star-analyst Mary Meeker, “The Queen of the Internet,” co-founder at ReCode, and partner at the investment firm Bond Capital delivers a 30-minute presentation on the state of the digital landscape.

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Where To Digitally Advertise If You Are A Bank

Banker to Banker

When your bank places advertising, partners, produces content or conducts events, it is helpful to statistically know which subject matter is most, and least conducive to banking. For example, by our marketing data, if you are interested in banking, and getting the most out of your banking relationship, you have a 31.4% probability of also being interested (to the point of engaging with content) in travel

How Your Bank Can Pick Up 40 Basis Points of Margin

Banker to Banker

IMPROVING MARGIN Community banks face intense competition from different institutions and various industries. There is currently a market phenomenon that is creating an unusually challenging environment for community banks that compete for real estate financing.

5 Reasons To Come To Our Bank Management Conference

Banker to Banker

2019 BANK MANAGEMENT CONFERENCE If you have not already, you should make plans to attend our 2019 Bank Management Conference which is coming up quickly on July 11 – 13, 2019.

What Commercial Loan Covenants Matter For Banks

Banker to Banker

MANAGING LENDING RISK We are not sure when the first signs of a credit shock will appear, but it is coming.

The Most Important Function You Need For A Digital Bank

Banker to Banker

THE DIGITAL CUSTOMER EXPERIENCE While online account opening and digital lending are great, there is one function that is the most in demand by bank customers, yet most banks don’t think to provide any digital functionality around it.

Should Your Bank Have A Long Term Fixed-Rate Loan Program

Banker to Banker

In the last few months, more than a dozen bankers have reached out to us about the merits of a fixed-rate loan program. Up until a few months ago, we didn’t know that the industry had started coining the term “fixed-rate loan program.”

Two Proven Secrets To Faster Bank Decisions – Part I

Banker to Banker

Keeping up with the speed of change within a bank often requires quick decisions on a variety of topics. Things can slow down when bankers need “perfect” or complete information about a decision.

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Here Is How The Best Banks In Risk Management Talk About Risk

Banker to Banker

RISK MANAGEMENT You can’t be a quality banker unless you have your head straight about risk. For that matter, if you don’t have a clear view and clean language about risk, you really can’t manage risk accurately.

How To Tackle The Basics On Deposit Marketing [Webinar Recording]

Banker to Banker

DEPOSIT MARKETING If you are getting up there on loans-to-deposits and you are worried about bringing in more deposits the first question to ask yourself is, are you devoting enough resources to gathering deposits? Do you have a Chief Deposit Officer? Do you compensate for deposits?

Using Display Ads To Drive Profitable Deposits

Banker to Banker

DEPOSIT MARKETING You have probably heard that digital display ads, those small billboards that pop up on mobile, social channels and websites are worthless.

How To Grow Deposits With The Latest Marketing Techniques [Webinar]

Banker to Banker

Earlier this week we ran an article on the Price of Attention for Bank Marketing ( HERE ) and we were inundated with questions about how to pull some of these techniques off.

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How To Generate More Revenue and Satisfaction with an Inverted Yield Curve

Banker to Banker

A LOAN TACTIC TO IMPROVE REVENUE You cannot read a financial paper, business feed, or watch financial television without someone mentioning yield curve flattening and inversion. Google searches for “yield curve inversion” are at their highest level ever.

Improving ROA and Data Visualization At Your Bank

Banker to Banker

THE DATA ON NIM Data visualization is the presentation of data in a pictorial or graphical format. It enables decision-makers to see analytics more easily, grasp difficult concepts, identify new patterns, and explain outliers

How Should Community Bankers Position for Declining Rates

Banker to Banker

COMMERCIAL LENDING IDEAS Many community bankers are now considering how to position their asset and liability portfolios for declining interest rates. On the one hand, interest rates should be falling more, and on the other hand interest rates are being talked down against a backdrop of still strong economic data