March, 2010

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Best Branch: Incentives that count

Jeff For Banks

'I recently read, and subsequently reviewed (see post link below), The Nordstrom Way to Customer Service Excellence. In that book, the authors cited FirstMerit Bank as an example of a financial institution that implements Nordstrom-like tenets throughout their company. One concept mentioned was a competition for Best Branch. This got me thinking of how community banks could create an objective incentive system for branch personnel to culminate in the awarding of “Best Branch”.

System 68
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Is the bank sales culture gone wild?

Jeff For Banks

'A few weeks ago, a nice woman from Sovereign Bank called our home with news that, based on our relationship with the bank, we were pre-approved for a home equity loan. The problem… my wife and I don’t bank at Sovereign. They called for our twenty year old daughter who had a checking account with them. As far as I knew, our daughter had no home to borrow against.

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Deposits: Do you want a relationship or fries with that?

Jeff For Banks

'Regulators have been particularly harsh to those banks whose business plans call for other-than-traditional deposit acquisition. If your bank has brokered deposits, Internet deposits, jumbo CDs, rewards checking, and in some cases CDARs, a regulator near you may be calling to order you to seek more traditional funding. This line of reasoning centers on cost of deposits and equates high-cost deposits with less loyal customers… commonly referred to as “hot money”.

Indiana 60
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Community Involvement: Good investment or waste of time?

Jeff For Banks

'A bank CEO at a strategic planning retreat opined: it is far more productive to implement a disciplined calling effort than to attend community events. Yet community involvement continues to be cited by community financial institutions as something that distinguishes them from large banks. Who is right? In its most basic form such as deciding whether to attend a local Rotary Club event or to spend those two hours calling on clients and prospects, I would agree with the bank CEO.

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Digital Transformation: Accelerating ROI and Growth in Commercial Lending

Now is the time for lenders to prioritize their digital transformation initiatives in preparation for the lending rebound. Rising competition and ever-increasing customer demands for speed and efficiency are forcing financial institutions to embrace digital transformation. This shift can feel overwhelming—where do you begin? This infographic illustrates automation demands and shows you how loan document automation serves as an essential step to increase profits and provide the best lending exper

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Book Report: The Nordstrom Way to Customer Service Excellence

Jeff For Banks

'B+ This book was written by: 1) an author that is on the speaking circuit regarding the Nordstrom Way; and 2) a former long-term Nordstrom employee. So in terms of expertise on how the famous department store serves customers to drive sales, these guys have it. I have spoken and written about how banks lack the proper training, motivation/incentives, and expertise to become an advisory industry.

Report 60

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The social responsibility of banks is to increase profits.

Jeff For Banks

'When Milton Friedman penned his 1970 editorial in the New York Times regarding the social responsibility of business, there was much political upheaval against government and business by the newly enlightened hippie-set. His conclusion remains true, however, as much then as now: business has no social responsibility except to maximize profits within the laws and ethical norms of the society in which it operates.

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Quotes from my quote locker.

Jeff For Banks

'I collect quotes from a variety of sources to remind me of knowledge imparted to me by smart people. Since my memory is relatively weak, I subscribe to the theory that those that forget history are bound to repeat it. So my quote database is a compendium of reminders of historical facts or events that, if forgotten, ultimately lead to a repeat of poor results.

Utah 60
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Have we checked out of business banking?

Jeff For Banks

'Alex Pollack, a resident fellow at The American Enterprise Institute, had a sobering editorial in the March 3, 2010 American Banker. The context of his commentary was on the bubble that burst in the residential real estate market, and the more methodical decline in commercial real estate. He rattled off sobering facts: fifty five percent of commercial bank loans are tied to real estate.

Lending 60