The Five Greatest Risks to Banks

Banks are typically thought of as stable, reliant and dull, or that’s what we would like them to be. Actually, banks are inherently risk managers, as we have now realized in the past five years. Banks can be basket cases if they manage risk badly or high-return investment vehicles if they manage risk well, but in the Read More

By |2020-05-27T18:01:01-05:00September 16th, 2013|Comments Off on The Five Greatest Risks to Banks

The Small Business Trifecta

Last month, Inc. reported that small business owners are more optimistic than they were a year ago, and “owner optimism tends to spur hiring and expanding … As many as 76 percent of small business owners said the second quarter met or exceeded expectations, and half expect the third quarter to be even better than the second.” Read More

By |2020-05-27T18:01:02-05:00August 23rd, 2013|Comments Off on The Small Business Trifecta

New Drivers in Auto Lending Risk

Auto lending has been on a positive trajectory for the last few years. Delinquencies are down. Asset values remain solid. Pent-up demand is still emerging. Used car lending is on the rise. With all that going on, it’s a good time to ask, “What could possibly go wrong?” In other words, where might new risk lurk? Of Read More

By |2020-05-27T18:01:02-05:00August 16th, 2013|Comments Off on New Drivers in Auto Lending Risk

Improving the Commercial Lending Experience

Delivering “Best-in-Class” customer service to commercial clients is an often-expressed commitment in bank vision statements. So, why do so many banks find it difficult to deliver on that promise? Unless a consistent, across-the-board commitment to best-in-class service is held by everyone in the bank’s commercial lending group, including credit analysts, loan administrators, doc prep, processors, loan assistants Read More

By |2020-05-27T18:01:03-05:00August 5th, 2013|Comments Off on Improving the Commercial Lending Experience

Tracking Loan Documentation Exceptions

Federal bank and credit union examiners insist that a reliable system for tracking exceptions needs to be part of any loan portfolio management process. And tracking deviations from the loan policy and underwriting standards is certainly crucial. But often, it’s analyzing and controlling exceptions related to documentation that can alert a financial institution when a loan deviates Read More

By |2020-05-27T18:01:03-05:00July 2nd, 2013|Comments Off on Tracking Loan Documentation Exceptions

Know Your Customer No Longer Passé

Regulators are openly worrying as banks of all sizes ramp up their commercial and industrial (C&I) lending. C&I loans are up 10% from last year and close to reaching the pre-crisis peak of $1.6 trillion. The growth comes from long-standing players as well as new entrants, such as community banks, seeking an alternative to weak demand for Read More

By |2020-05-27T18:01:04-05:00June 10th, 2013|Comments Off on Know Your Customer No Longer Passé

What Makes the Best Better?

What makes the best of the best outperform the competition? It’s a question that puzzles business leaders everywhere, especially in the banking industry, where razor-thin margins and a tough economic climate have put a damper on institutional performance. Yet, there are some banks that consistently perform better than their peers. To understand what these banks are doing Read More

By |2020-05-27T18:01:04-05:00May 28th, 2013|Comments Off on What Makes the Best Better?

Balancing Customer Relationships and Risk Management

At a time when customers want more personalized service, financial institutions must balance credit risks with the importance of maintaining and nurturing customer relationships. Doing this with business customers can be tricky because their ability or willingness to provide financials can vary from business to business, from year to year, and regulators are scrutinizing lending policies more than in Read More

By |2020-05-27T18:01:05-05:00May 20th, 2013|Comments Off on Balancing Customer Relationships and Risk Management

Banking’s Big Opportunity with Small Dollar Loans

Financial institutions (FIs) determined a long time ago that it was hard to earn a profit making consumer loans for a few hundred dollars. As Mark Pearce of the FDIC commented in 2012 on reviewing the FDIC’s Small Dollar Loan Pilot started in 2008, “the interest income and fees generated were not always sufficient to achieve short-term Read More

By |2020-05-27T18:01:05-05:00May 7th, 2013|Comments Off on Banking’s Big Opportunity with Small Dollar Loans

The Early Warning Radar of Loan Review

The causes of the recent financial crisis are well known – the tremendous expansion of subprime mortgages and their proliferation through the international financial system via securitization, for example. Yet, when one considers the number of bank defaults since 2008, the question presents itself: couldn’t these institutions have reduced their chance of failure by using a well-developed Read More

By |2020-05-27T18:01:06-05:00April 16th, 2013|Comments Off on The Early Warning Radar of Loan Review

New Pitfalls in Consumer Disclosures and Marketing

Banks developing new products and services need to pay as much attention to how they plan to describe and market the offerings as to their actual design. That’s the lesson to be derived from the major enforcement actions taken so far by the Consumer Financial Protection Bureau (CFPB), together with federal and state banking regulators, according to Read More

By |2020-05-27T18:01:08-05:00February 11th, 2013|Comments Off on New Pitfalls in Consumer Disclosures and Marketing

Loan Origination – Getting the Paper Out

For retail banks, an effective loan origination and servicing operation is a key contributor to long-term profitability. Under pressure from today’s economic and regulatory environment, lenders need new and smarter ways to cut costs and increase productivity, while at the same time improving borrower satisfaction and ensuring regulatory compliance. The loan processing lifecycle typically comprises many different Read More

By |2020-05-27T18:01:09-05:00January 16th, 2013|Comments Off on Loan Origination – Getting the Paper Out

The Miserable State of Small Business Banking

The state of small business banking at most banks, that is, their ability and willingness to serve the needs of small companies, is at its nadir. Despite all the hype from banks about how they support small businesses, the reality is substantially different and more businesses are recognizing this gap. What’s happened to bring banking to this Read More

By |2020-05-27T18:01:10-05:00December 10th, 2012|Comments Off on The Miserable State of Small Business Banking

Value-Based Innovation for Small Business Lending

The frustration of small business owners with U.S. banks is well known. Despite political pressure on banks to loosen the purse strings, pent-up demand for loans continues to build following the imposition of restricted credit standards in the wake of the 2008-2009 financial crisis. In the second quarter of 2012, only 33% of all small and medium size enterprises Read More

By |2020-05-27T18:01:11-05:00October 30th, 2012|Comments Off on Value-Based Innovation for Small Business Lending

Loan Recycling for Customer Relationships

The signs that credit remains tight abound. The Federal Reserve’s Senior Loan Officer Survey shows that banks are demanding additional collateral, more cash flow and more equity. The National Small Business Association found that 43% of surveyed small business owners needed funds but could not get financing. Bankers might want to step back and ask themselves: What Read More

By |2020-05-27T18:01:13-05:00August 8th, 2012|Comments Off on Loan Recycling for Customer Relationships

How to Generate Loan Growth

First quarter numbers are in and loan demand is still dragging, which is bad news for banks. How do they plan to improve in today’s slow-growth economy? Asset growth and credit quality are the top priorities for banks and credit unions of all sizes, according to the March 2012 BAI Demand Pulse survey. And no wonder: most Read More

By |2020-05-27T18:01:15-05:00May 11th, 2012|Comments Off on How to Generate Loan Growth

Leveraging Data with High-Performance Analytics

Financial services firms possess the data to make sound decisions – whether to underwrite a loan, extend an offer to retain a customer or reduce exposure in a certain market. The problem is that the data deluge is so overwhelming that being able to make sound decisions quickly is not easy. Analytical run times either grow too Read More

By |2020-05-27T18:01:16-05:00April 4th, 2012|Comments Off on Leveraging Data with High-Performance Analytics

Risk Assessment for Mortgage Servicers

As we move into the height of the 2012 presidential election cycle, issues of consumer protection in the financial services industry are front and center on the political agenda, as can be seen in the recent controversy involving the president’s recess appointment of Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB). Central to the Read More

By |2020-05-27T18:01:18-05:00January 27th, 2012|Comments Off on Risk Assessment for Mortgage Servicers

Time Deposits: Profitable or Not?

Today, your bank is issuing time deposits at rates significantly below what they were just a few years ago and renewing CDs at a lesser rate than they were just last term. So, what’s the goal? Should bankers be pleased when they find that CDs renewed at 20 basis points below last term’s rate? Does it matter Read More

By |2020-05-27T18:01:18-05:00January 11th, 2012|Comments Off on Time Deposits: Profitable or Not?

Coping with the Deposit Surplus

What to do with all those deposits? It’s a problem banks of all sizes are wrestling with in this curiously sluggish economy. Even though interest rates are at near-record lows, banks are flush with deposits that they can’t lend out profitably since loan demand remains stagnant. Those super-low interest rates keep bond rates unattractive as well. “The Read More

By |2020-05-27T18:01:18-05:00January 3rd, 2012|Comments Off on Coping with the Deposit Surplus