Five Future Forces Impacting Banks

Is the banking industry in the midst of a major shift in the way we are structured and do business? No one knows for certain. But what is clear is there are several significant trends underway which, if they persist, will have critical implications for banks. One such trend is that banking has been less profitable over Read More

By |2020-05-27T18:00:39-05:00November 18th, 2014|Comments Off on Five Future Forces Impacting Banks

Targeting Fundamentals for Sales

Bankers all agree that they need to improve their productivity as operating expenses rise due to diverse factors, including increased compliance costs, continual technology investments, and the need to add more channels while maintaining the old ones. Virtually all of our clients involved with banking small businesses, for example, preach the need to do more with less, Read More

By |2020-05-27T18:00:41-05:00August 22nd, 2014|Comments Off on Targeting Fundamentals for Sales

Improving Fixed Income, Courtesy of the Fed

Federal Reserve chairwoman Janet Yellen recently indicated in no uncertain terms that it was not the Fed’s intention to raise interest rates for the foreseeable future. Citing a lack of confidence in interest rates as the most effective tool to counter existing “financial excesses” among financial institutions, Yellen indicated that when interest rates do inevitably begin to Read More

By |2020-05-27T18:00:42-05:00July 23rd, 2014|Comments Off on Improving Fixed Income, Courtesy of the Fed

The Right Way to Cut Costs

Facing continuing pressure from investors to reduce expenses in a slow-growth environment, the temptation for many bank executives is to cut costs indiscriminately, for example, 10% across all departments. The problem is that such traditional cost reduction programs will leave them unable to sustain those early gains, resulting in a competitive disadvantage. Also no business can grow Read More

By |2020-05-27T18:00:42-05:00June 16th, 2014|Comments Off on The Right Way to Cut Costs

Connecting the Dots to Cut Costs

Among the wonders of recent automated teller machine (ATM) technology is the ability to recycle deposited cash. But if your bank has recently installed such ATMs, have you also reviewed your cash forecasting models and altered your armored-car delivery schedule? After all, the point of recycling cash is that you can be more efficient about replenishing it. Read More

By |2020-05-27T18:00:44-05:00March 3rd, 2014|Comments Off on Connecting the Dots to Cut Costs

Accelerating the Efficiency Engine

A new year is time for new resolutions. And for many banks, that means resolving to make their operations run leaner and better, at less expense. But that’s easier said than done, as many banks this year have struggled with efficiency ratios in the face of slow revenues. Case in point: The efficiency ratio at 230 banks Read More

By |2020-05-27T18:00:45-05:00February 4th, 2014|Comments Off on Accelerating the Efficiency Engine

Growth is Easy

It is hardly new news that many banks are struggling to grow, constrained as they are by a still-slow economy, an overly aggressive regulatory environment and an often cautious customer base. However, for many banks, growth is there for the taking if they are willing or able to implement the steps necessary to assess and benefit from Read More

By |2020-05-27T18:00:45-05:00February 3rd, 2014|Comments Off on Growth is Easy

Reducing the ALLL Reserve for Thrifts

The Office of Thrift Supervision (OTS) may be long gone, but the institutions that it once regulated are still around and dealing with some of its legacy issues. OTS supervision formally ended in July 2011, when approximately 670 thrifts were moved over to the Office of the Comptroller of the Currency (OCC) resulting in problems for those Read More

By |2020-05-27T18:00:45-05:00January 29th, 2014|Comments Off on Reducing the ALLL Reserve for Thrifts

Finding Opportunity in Declining Branch Volumes

With average branch monthly teller transaction volume for financial institutions (FIs) declining more than 45% in the past 20 years, according to FMSI’s annual Teller Line Study, banks are challenged more than ever to keep their branches profitable. Fortunately for banks with resourceful management, branch volumes and branch profitability do not have to go down in lockstep Read More

By |2020-05-27T18:00:45-05:00January 13th, 2014|Comments Off on Finding Opportunity in Declining Branch Volumes

Three is a Crowd in Service Fee Optimization

One of the most revealing and significant findings from our latest study on emerging financial services is that the principle of diminishing return applies to the bundling of financial services. The principle of diminishing return states that demand is curved and any additional consumption beyond the highest point produces less return. In the case of financial services, Read More

By |2020-05-27T18:01:03-05:00July 24th, 2013|Comments Off on Three is a Crowd in Service Fee Optimization