April, 2015

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This One Strategy Will Change The Future Of Your Bank

South State Correspondent

In game theory, there is what is called the “dominant strategy.” A dominant strategy for a bank is a position that no matter what other competitors do, that bank will earn a larger return. Now, few strategic decisions facing a bank have a dominant position, so when a bank finds a choice that results in a dominant decision it is imperative that they take it.

Strategy 199
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Shoot and score: Tips for winning a new business valuation client

Abrigo

If you’re a sports basketball fan, you know that the NBA playoff matchups are underway. As it stands, the average field goal percentage for the current season is.449. Of all 30 NBA teams – from first place standing in the Eastern Conference to last place in the West – players are making fewer than half of their shots from the field. In most other professions, making 45 percent of your shots might be frowned upon, particularly if those shots equate to scoring business.

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Pushing beyond apps

Celent Banking

It struck me while I was driving this morning: First-gen mobile apps are fine, but virtually everyone is missing high-volume opportunities to engage with their customers. Allow me to back up a step. I was stuck in traffic. Not surprisingly, that gave me some time to ponder my driving experience. I found myself thinking: Why can’t I give my car’s navigation system deep personalizations to help it think the way I do?

System 147
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April is a Flurry of Community Banking Activity

Finer Points

'Wow. I don’t think there’s much more you can say with the flurry of activity going on at ICBA and throughout the community banking industry right now. Coinciding with last week’s kickoff of Community Banking Month and the final countdown to the ICBA Washington Policy Summit, ICBA also launched Community Banker University. So at the […].

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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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CFPB to hold May 14 field hearing on student debt

CFPB Monitor

John L. Culhane, Jr. The CFPB has announced that on May 14, 2015, it will hold a field hearing in Milwaukee on student debt. Similar to other field hearings, Director Cordray will give remarks and witnesses will include members of consumer groups, industry representatives, and members of the public. Since field hearings typically coincide with a related development, such as the issuance of a report, we expect this field hearing to be accompanied by a new development related to student loans.

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Harsh Realities of Commercial Lending

South State Correspondent

As we all know, things aren’t always as they appear. In the classic image below on the left, the two horizontal lines are of equal length. In the below image on the right, you can see both a young fashionable woman looking away and an old woman’s left profile (which one do you see?). We won’t even get into the blue/black/gold/white dress debate. Similar illusions can be found in commercial lending.

Lending 188
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Creating repeat valuation and consulting work: Optimize value of clients’ businesses

Abrigo

Home sellers know that the first step to selling a home is getting it ready to be shown to potential buyers. And home buyers know that a fresh coat of paint, a clean yard and functional doorknobs can make a home more appealing. Even if you’re not selling your home, a thorough cleaning is much more valuable than just the lemon scent. Organizing your possessions can optimize the use of your spaces and can save time in daily tasks.

Capital 163
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On the Margins

Celent Banking

Celent recently released the report On the Margins: A Comparison of Banks and Credit Unions by Asset Tier , where community institutions of the same size are compared across a number of performance metrics, mainly efficiency ratio. One of the most interesting findings is that credit unions are becoming less efficient at a faster rate than banks of the same size.

Community 143
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Three Cost-Saving Benefits to Outsourcing Collections

SWBC's LenderHub

Most businesses, financial institutions included, are always looking for ways to save money on basic operational costs. The goal is to run a lean and mean operation, right? Efficiency is the name of the game when you want to keep your shareholders—your members, in some cases—happy and, ultimately, pass on those cost savings to them in the form of lower loan interest rates and higher deposit account interest rates.

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The State of Automation in Financial Services 2024 Report

In this report, you’ll find a comprehensive analysis of survey responses from executives at banks, credit unions, and insurance companies concerning their organization’s current and future use of automation. The report’s key insights include: Which types of automation are saving organizations the most time and money How to overcome the biggest barriers to automation implementation and adoption Why automation investments will continue to grow over the next few years How much you could save in 202

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CFPB issues 2014 fair lending report

CFPB Monitor

Barbara S. Mishkin. The CFPB has issued a fair lending report covering its fair lending activities during 2014. The report states that in 2014, CFPB fair lending supervisory and public enforcement actions required institutions to provide approximately $224 million in remediation. The report begins with a discussion of factors the CFPB considers in its risk-based prioritization approach for determining “what, where, and how fair lending risks to consumers should be addressed.” The

Lending 86
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De Novo Banks: Only Apply If You Intend to Matter

Jeff For Banks

ABA President Frank Keating wrote an Op-Ed piece recently in The Hill entitled New jobs and new growth call for new banks. I don't believe it. A more accurate title should have been New jobs and new growth call for new businesses. His leap-of-faith assumption was that new banks are critical to new business formation. I'm skeptical. Why? I don't think de novo banks are key players to business startup capital formation.

FDIC 83
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Finally, Here Is What Those Bank Emojis Really Mean

South State Correspondent

It is understandable that banks are confused on how to use the new Apple iOS 8.3 emojis that just came out on the iPhone. We see all sorts of improper use. Like the one to the left. Some banks use this as if to say everything is Ok. The reality is that this emoji has the complete opposite meaning. Notice the gap between the fingers? What this really says is “I am this close to slapping someone in management for screwing up the account.

Apple 199
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Longer exam cycle for more community banks?

Abrigo

'A new bill proposed on April 16 aims to increase the exam cycle period for a larger pool of community banks. The bill, spearheaded by Senator Joe Donnelly, D-Ind., and Senator Pat Toomey, R-PA., would make more banks eligible for an 18-month exam cycle as opposed to the norm of a 12-month schedule. OCC guidance on Community Bank Supervision states all national banks must receive a full-scope, on-site exam at least annually.

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Register Now: Sneak Peek Into Close Automation SkyStem Web Demo

Technology is rapidly changing the way accountants perform and manage month-end activities. Spreadsheets, email, and shared drives no longer have to slow us down. Join us as we present a "sneak peek" recorded demo of SkyStem's month-end close solution – ART. In under four weeks, your team can start reaping the benefits of month-end close automation by vastly reducing spreadsheets, cut down on reconciliation work, speed up the month-end close, and better manage your remote team.

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E-Invoicing Making Progress? Discuss!

Celent Banking

There have been a few mainstream press mentions of e-invoicing and invoice financing over the last few weeks. For many readers not closely following the space, I suspect this will be the first thing they’ve really seen about the topic. Some of the numbers quoted in the articles have been eye catching – a trillion pound of untapped potential.

Marketing 161
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Who’s Putting on Payments?

Jack Henry

'Author: Eric Wilson, ewilson@profitstars.com. Wearable technology is all but certain to become a big factor in how people interact with the world around them. And, with the Apple Watch scheduled to begin shipping later this week, this evolution seems likely to happen very quickly. Of interest to banks and credit unions, experts expect payments to be one of the applications particularly suited to wearable devices.

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CFPB settles first overdraft opt-in rule enforcement action

CFPB Monitor

Barbara S. Mishkin. The CFPB announced yesterday that it had reached a settlement with Regions Bank regarding claims that the bank unlawfully charged overdraft fees to customers who had not opted-in for overdraft coverage. The matter is the CFPB’s first enforcement action under the Regulation E rule that prohibits depository institutions from charging overdraft fees on ATM and one-time debit card transactions unless a consumer has affirmatively opted in.

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Bankers Tell Me Their Top Industry Game Changers

Jeff For Banks

'If you were asked what one industry trend will change the face of banking forever, what would you say? I did that very thing to dozens of bankers that attended their respective state banking associations'' Executive Development Programs (EDP). And their answers gave me a more positive outlook for our future. I teach Bank Profitability for the Washington, Utah, and Montana Bankers'' Associations EDP programs.

Industry 102
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2024 Lending Outlook: Innovations and Evolutions in the Financial Sector

As we step into 2024, the lending landscape evolves rapidly with technology, regulations, and market dynamics driving change. For banks and financial institutions to stay competitive and meet the evolving needs of their customers, these drivers must be understood and engaged with. Lenders can anticipate significant transformation fueled by technological advancements, regulatory shifts, and changing consumer behaviors.

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5 Pricing Tactics to Make Your Bank More Profitable

South State Correspondent

Dad used to always ask us – “What is more important – your mind or your body?” It was a trick question and the lesson he was trying to impart was that both are equally important. One is no good without the other and both need to be developed to be equally strong and in concert. The philosophy can be applied to banking as the discipline of pricing is equally important to credit, asset-liability management, risk and strategy.

Resources 199
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3 Accounting clients who need a ProfitCents report

Abrigo

'By Natasha L. Closs, Director of ProfitCents Consulting & Advisory Services A lot of new ProfitCents customers understandably want to get the most out of the solution without devoting a ton of time in order to ramp up. One of the first steps in making sure you generate an acceptable return on your investment is to identify quickly a small number of clients with whom you can incorporate the industry data, financial analysis and projections available through ProfitCents.

Report 150
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Logging Into Your Bank in a Heartbeat

Celent Banking

'Apple may not always come up with the idea in the first place, but by throwing their weight behind they can take the idea mainstream. Biometric authentication has existed for years, but it was Apple that really brought it to everyone’s attention when it first launched TouchID, and subsequently demonstrated with Apple Pay how biometrics can be used to authenticate a payments transaction.

Apple 173
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ONE is the Loneliest Number?

Jack Henry

'Author: Jason Schwabline, JSchwabline@jackhenry.com. One. Numero Uno. The “loneliest number”, or the goal? Customer experience in the financial services space has been measured under one interaction point for years—the branch. A bank lived and died through the relationships it cultivated and nurtured through its branches. Sometimes a visit was joyful … a first account or a new home for instance.

Houston 81
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Addressing Top Enterprise Challenges in Generative AI with DataRobot

The buzz around generative AI shows no sign of abating in the foreseeable future. Enterprise interest in the technology is high, and the market is expected to gain momentum as organizations move from prototypes to actual project deployments. Ultimately, the market will demand an extensive ecosystem, and tools will need to streamline data and model utilization and management across multiple environments.

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Supreme Court takes case on statutory damages recovery even without any actual harm

CFPB Monitor

Barbara S. Mishkin. The U.S. Supreme Court agreed yesterday to hear an important case that will decide whether a plaintiff who cannot show any actual harm from a violation of the Fair Credit Reporting Act nevertheless has standing under Article III of the U.S. Constitution to sue for statutory damages in federal court. The consequences of the Supreme Court’s eventual decision will likely extend significantly beyond FCRA litigation, and affect numerous other statutes and the viability of c

Report 73
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Welcome to New Marketing Muscle

Gonzobanker

'What’s Your Offer? Chase (as in, the megabank) came up in conversation at my recent family reunion. Two different family members (from different parts of the country) mentioned establishing new Chase relationships. Now, I know what you GonzoBankers must be thinking: Wow, consultants have the most interesting, heartwarming family dinner chat. Just to be clear, I didn’t bring it up.

Marketing 105
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Don’t Make This Counter-Intuitive Loan Decision

South State Correspondent

Bankers are faced with loan pricing decision each and every day. Many bankers have a good intuitive sense of loan pricing, however, in today’s ultra-competitive environment being able to verify the gut feeling with a quantitative model can be very comforting. This week we introduced Smart Loan Express , our new risk-adjusted relationship pricing model (priced to start at $80 per month for any size bank) and when we did, we discovered that many bankers have a misconception of what a pricing mod

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3 Common loan review weaknesses

Abrigo

'Loan review is a periodic review of bank and credit union loan portfolios in order to gauge their overall risk profiles. The assessment of loan portfolio quality is then provided to senior management and the board of directors. This assessment often provides an early warning of deterioration (s) in credit quality and allows management to take steps to mitigate the risks.

Training 150
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Need Curated Pre-foreclosure Lists to Generate New Real Estate Leads? Trellis Has the Data!

Trellis is a state trial court research and analytics platform that provides Real Estate Professionals (Buyers, Foreclosure, Loan Modification, etc.) with LEADS on Pre-Foreclosures, Lis Pendes, Distressed Assets and more — to help uncover **new** opportunities and grow their business. The process is quick and easy — and all in real time. Trellis will supply you with a link to the relevant dockets, a Leads sheet and access to its UI where applicable.