Bolstering credit with pre-delinquency management

Credit delinquency has been a serious problem for banks over the last decade, particularly between 2008 and 2011. The delinquencies have fallen sharply in the last three to four years but it is generally accepted in the industry that any deterioration in economic conditions can quickly lead to renewed problems. No surprise, then, that financial institutions are Read More

By |2020-05-27T18:00:32-05:00June 17th, 2015|Comments Off on Bolstering credit with pre-delinquency management

Jason Bourne the banker

In the Bourne series by Robert Ludlum, Jason Bourne, the main character, is a highly trained (or mentally programmed) assassin for the United States who was highly successful at taking out targets. In the lending space we may need to start thinking about alternative lenders as the Jason Bournes of the industry. Like Bourne, they’re nimble, quick Read More

By |2020-05-27T18:00:32-05:00June 16th, 2015|Comments Off on Jason Bourne the banker

Banking response to alternative finance

At the recent Lendit conference focused on “alternative lending,” keynote speaker Larry Summers, the former Secretary of Treasury, said that he would not be surprised if within ten years alternative finance companies (AFCs) generated 75% of “non-subsidized” (non-Small Business Administration) small business loans and 30% to 40% of direct consumer lending. Today, the small business percentage generated Read More

By |2020-05-27T18:00:33-05:00May 22nd, 2015|Comments Off on Banking response to alternative finance

Mortgage opportunity for community banks

An increasing number of community bankers are asking themselves whether its worth the hassle – and the risk – to originate mortgages, particularly after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the subsequent promulgation of the qualified mortgage and ability-to-repay rules. These regulations, if not followed correctly, could increase banks’ liability. Read More

By |2020-05-27T18:00:33-05:00May 19th, 2015|Comments Off on Mortgage opportunity for community banks

Return to consumer lending for community banks

It’s not a stretch to say the typical experience for a customer getting a consumer loan through their trusted community bank is only slightly more appealing than working with the sleazy finance desk at the local car dealership. The consumer lending capabilities of community banks significantly underperform that of most credit unions, as well as newly emerging Read More

By |2020-05-27T18:00:35-05:00April 10th, 2015|Comments Off on Return to consumer lending for community banks

Solving the small business dilemma

For years banks have recognized that the small business market represents significant opportunity to drive both balance sheet and earnings growth. The reasons are straightforward. First, the small business market is large and growing. Currently there are over 5.1 million businesses categorized as “small,” representing 90% of the total number of businesses in the U.S. Moreover, 500,000 Read More

By |2020-05-27T18:00:35-05:00March 27th, 2015|Comments Off on Solving the small business dilemma

What bankers can learn from leasing

In the past two years, banks have focused on building their equipment finance and leasing groups. Faced with slow and low margin growth in traditional commercial and industrial (C&I) lending, many institutions have turned to leasing as a source of sustainable earnings and a differentiated market approach. Some bankers also understand that leasing can provide internal best Read More

By |2020-05-27T18:00:37-05:00January 20th, 2015|Comments Off on What bankers can learn from leasing

Strategy First for Small Business Lending

One the most famous phrases in U.S. Supreme Court history comes from Justice Potter Stewart’s concurring opinion in a controversial 1960s case. “I know it when I see it” is his now infamous threshold for obscenity. In some respects, this is how banks approach small business. They have a vague idea of what they’re talking about, but Read More

By |2020-05-27T18:00:38-05:00December 15th, 2014|Comments Off on Strategy First for Small Business Lending

Rule Management for Compliance and Competitive Advantage

Banking and financial services organizations are built upon complex business rules that regulate many day-to-day interactions, from lending decisions to detecting fraudulent activity. These rules are constantly modified because of changes in company policy or new regulations or to keep an organization competitive. As such, rule changes need to be handled swiftly and with careful attention. If Read More

By |2020-05-27T18:00:38-05:00December 2nd, 2014|Comments Off on Rule Management for Compliance and Competitive Advantage

Regional Banks May Face Mortgage Fraud Scrutiny

Now that most of the largest U.S. banks have settled claims arising out of their roles in the financial crisis, what are regulators and prosecutors likely to do next? Given the public’s increased distrust of financial institutions, the various federal and state government agencies and regulators are not likely to take a break now. Expect, rather, that Read More

By |2020-05-27T18:00:39-05:00November 17th, 2014|Comments Off on Regional Banks May Face Mortgage Fraud Scrutiny

Loan Pricing Tools for Raising Deposits

Talk about an under-appreciated tool. Loan pricing apps are capable of inspiring a bank toward any number of strategies beyond setting decent loan rates: growing profit; improving credit risk management; encouraging fee income; migrating away from expensive products; and growing deposits! However, most banks don’t use loan pricing apps. Typically, they get thrown out after the no-win Read More

By |2020-05-27T18:00:39-05:00November 3rd, 2014|Comments Off on Loan Pricing Tools for Raising Deposits

Projection for Rising Interest Rates

Last January, we published in BAI Banking Strategies our estimates for deposit interest rates in 2014. Now that we’re three quarters into the year, it’s time to ask: How did we do? Let’s start with the big picture, the overall economy. We predicted, “From a macro perspective, we are likely to see gradual and sustained improvement in Read More

By |2020-05-27T18:00:39-05:00October 15th, 2014|Comments Off on Projection for Rising Interest Rates

Asking the Right Questions in Small Business Banking

The small business lending market is one of the few bright spots in banking and can have a significant impact on a bank’s bottom line. But it’s also not a business to approach haphazardly. The banks that are most successful in this area have a clear strategy for the types of loans they are willing to write, Read More

By |2020-05-27T18:00:41-05:00August 4th, 2014|Comments Off on Asking the Right Questions in Small Business Banking

All in One Lending Systems

To keep up with changing customer needs, banks are quickly adopting technologies such as mobile, social media, data analytics and the cloud. While all of these technologies play a key role in modernizing banks and ensuring relevancy, it’s not enough to adopt and implement emerging trends, since such efforts always lead back to the question of whether Read More

By |2020-05-27T18:00:42-05:00June 18th, 2014|Comments Off on All in One Lending Systems

Seeking Efficiency in Corporate Real Estate

As banks struggle to push their share prices back up to something resembling pre-crisis levels, many are missing cost savings opportunities hidden in plain sight: in branch network facilities and the corporate real estate (CRE) portfolio. Smart management of these assets can improve an institution’s efficiency ratio by simultaneously reducing operating costs and improving productivity, thus impacting Read More

By |2020-05-27T18:00:43-05:00May 14th, 2014|Comments Off on Seeking Efficiency in Corporate Real Estate

Rethinking Debt Collection Analytically

American Banker recently posed the question, “Is Debt Collection a Dying Business?” Hardly. Debt collection ranked among America’s top jobs in 2014, according to U.S. News and World Report, which noted, “Being a bill collector isn’t just about hounding debtors. Bill collectors also help negotiate a repayment plan and provide credit advice.” Consider that collectors’ jobs depend Read More

By |2020-05-27T18:00:43-05:00April 21st, 2014|Comments Off on Rethinking Debt Collection Analytically

Analytical Marketing Support for Business Lending

Most institutions interested in expanding business loans to customers and prospects lament the fact that they lack the ideal complement of top tier bankers. Too often, many of their existing bankers exhibit mixed effectiveness. There are two options: wait until one assembles the ideal banker force, a process which can take years, or deploy analytical direct marketing Read More

By |2020-05-27T18:00:43-05:00April 11th, 2014|Comments Off on Analytical Marketing Support for Business Lending

Expanding the View of Small Business Banking

At the close of 2013, the Thomson Reuters/PayNet Small Business Lending Index (SBLI) reached its highest point in seven years. The SBLI has proven to be a strongly correlated indicator of GDP by up to five months in some cases since small businesses traditionally are more adept at responding to economic conditions than their larger business counterparts. Read More

By |2020-05-27T18:00:44-05:00April 7th, 2014|Comments Off on Expanding the View of Small Business Banking

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

Deposit Strategy in a Rising Rate Environment

The banking industry has anxiously awaited a rising rate environment, anticipating that interest income from loans and investments will rise more quickly than interest expense on deposits and other funding. Sure that deposit rates will lag industry-wide, many banks believe they can win by simply coasting with market trends. But much has changed since the last rate Read More

By |2020-05-27T18:01:00-05:00November 12th, 2013|Comments Off on Deposit Strategy in a Rising Rate Environment