Gonzobanker

MAY 31, 2019

Financial institutions that want to play in the small business lending sandbox need to bring their digital toys. But how can community banks successfully compete with big banks and fintechs that are spending billions on their digital lending capabilities? Source: DeBanked ) Square Capital lent about $1.6 Source: DeBanked ).

Lending 126

Lending Community Bank Community Data 126

Abrigo

JULY 14, 2023

Staff producing the reports must communicate with management and inquire what management wants to glean or achieve from the data insights. Analysis should be performed on concentrations, as a percentage of capital, in terms of: (1) Collateral type such as multifamily, retail, office, etc. (2)

Strategy 195

Strategy Data Analytics Analysis 195

Gonzobanker

FEBRUARY 29, 2024

A recent round of bank merger announcements and the marquee Capital One/Discover deal illustrate this mantra’s popularity. Management must invest in the resources necessary for best-in-class digital sales capabilities, and then they need to terrorize their team to hit aggressive growth goals through this channel. Why is this important?

Tools 152

Tools Analytics Data System 152

South State Correspondent

AUGUST 21, 2022

Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. This capital ratio is used to assess the possible riskiness of a hedge provider.

How To 195

How To Community Bank Community FDIC 195

Jeff For Banks

DECEMBER 28, 2023

We do this on an outsourced basis, meaning we custom build the model based on how the institution is managed. If you want the head of commercial lending or retail banking to take ownership of the continuous improvement of their spreads so the bank can improve its net interest margin, you must first measure it.

Groups 85

Groups Capital US Community 85

BankUnderground

JANUARY 12, 2023

There is also a risk of higher loan defaults eroding banks’ equity capital, which could lead banks to tighten lending conditions. However, this effect is small in our model given the size of banks’ capital buffers. This is akin to the concept of ‘value-at-risk’ used in financial risk management.

Policies 114

Policies Capital Exercises Lending 114

Abrigo

OCTOBER 9, 2019

Stress testing gives an institution a serious look into their capital and reserves, and if they possess enough of each to remain viable, should a recession hit. Both CECL and stress testing take top-down and bottom-up approaches to test the capital adequacy of a financial institution. Portfolio Risk & CECL. Learn More. Credit Risk.

Data 150

Data Exercises Software Tools 150

FICO

MARCH 29, 2018

The main challenge with CECL is that it will require higher levels of capital to be kept in reserve and lead to changes in lending practices and portfolio and product management. Those who best implement CECL will have greater retained earnings and lending capital than their competition. Sound appealing?

Lending 45

Lending Exercises Capital Maine 45

Jeff For Banks

AUGUST 2, 2014

Although our Tier 1 leverage ratio is greater than 10%, you criticized us for our stress scenarios contained in our capital plan. Aside from the clear lack of analytic rigor you exercised to come to this conclusion, it is important to remind you that estimating future negative events that impact our capital is guesswork.

Regulation 93

Regulation DC FDIC Analytics 93

Gonzobanker

JULY 28, 2014

Lending execs across the country were clearly dissatisfied with how manual processes and lackluster technology were used to stumble through those massive re-fi volumes. Bankers face a lot of work and challenges as they attempt to marry new lending systems with elegant, customer-friendly lending processes. Now we’re talking! .

System 102

System Lending Data US 102

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

FICO

FEBRUARY 12, 2023

The business model here needs to focus on a strategy that balances lending growth while keeping risk in check. Here is an excerpt of his top ranking post: Credit limit management is regarded as a key driver to profitable portfolios. With this approach, loan pricing is not an isolated exercise.

Digital Banking 52

Digital Banking eBook Analytics Customer Experience 52

Abrigo

MARCH 17, 2022

Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Regardless of regulatory pressure, measuring and managing key risks are the cornerstone of community financial institutions’ enterprise risk management (ERM) programs.

Capital 195

Capital Regulation Risk Management Community 195

Gonzobanker

MAY 8, 2020

25% 140 banks will have capital levels that have fallen below 8%. So far, bankers have taken comfort in the soundbite that “this crisis is different” because of the strong capital levels and risk management rigor that has developed since the Great Recession. Practice the art of surgical lending. costs can be reduced.

Lending 104

Lending Analytics Analysis Capital 104

Abrigo

JANUARY 12, 2016

The risk rating prepares relationship managers to determine how often to review the loan. Once a borrower has an accurate risk rating, the relationship managers can decide how to review the loan and how often they want to review it. Risk rating sets the foundation for the risk management of the entire loan portfolio.

System 150

System Risk Management Management Exercises 150

NCR

AUGUST 17, 2017

David Blumberg, founder and managing partner of Blumberg Capital, said the research indicated a “huge opportunity for fintech companies to grow and scale as more consumers begin to recognize the benefits of fintech” A separate report from KPMG , focusing on the UK market, revealed that total investment in fintech reached $1.4

Regulation 51

Regulation Fintech Exercises Capital 51

Gonzobanker

FEBRUARY 21, 2017

The organization that was born out of and scorned bad self-management suffered from the same disease. More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. Here’s a list of internal “We Will” statements that any well-managed bank should embrace: We Will….

Regulation 73

Regulation Risk Management Management America 73

Gonzobanker

FEBRUARY 21, 2017

The organization that was born out of and scorned bad self-management suffered from the same disease. More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. Here’s a list of internal “We Will” statements that any well-managed bank should embrace: We Will….

Regulation 60

Regulation Risk Management Management America 60

Jeff For Banks

FEBRUARY 26, 2011

I recently spoke at a Financial Managers Society meeting packed with FI CFOs and controllers and asked the crowd what they thought "evaluate strategic alternatives" meant. But should a board, in exercising their fiduciary duties, perform this analysis routinely without determining to sell the FI first? In unison, they responded "sell".

Analysis 71

Analysis Strategy Exercises Philadelphia 71

CB Insights

OCTOBER 31, 2017

Three years later, for many, it is now rightly recognised as perhaps the most important pillar of our health and wellness, alongside exercise and diet. Twenty months of my absence have allowed the “professional” top managers to kill the company using the money of rich oligarchs. Majority shareholders abandoned it.

Company 78

Company US San Francisco Capital 78