Since at least the early 1500’s, bank branches have been the central interaction point between a bank and its customers. Next to a bank’s staff, branches are one of the largest contributors to a bank’s overall brand and thus, rank highly on important items for customer satisfaction.
Banker To Banker
The FHLB system allows member banks to use advances to manage liquidity and interest rate risk. The Home Loan System wholesale funding rates are very attractive and seemingly compelling.
There is a trendy restaurant in New York City that temporarily changed its menu to serve food composed entirely of garbage. The idea was to highlight the amount of food that is wasted worldwide. Food waste happens for different reasons in different places – in developing countries, difficulty with storage and refrigeration are the problem. In developed countries, aesthetic standards are the primary culprit, and changing this perception was the goal of the experiment.
In our previous blog (HERE), we considered the structure of commercial loan documentation and important objectives of certain agreements. We also discussed common loan concepts that are of particular importance to commercial lenders. Today, we cover some of the important provisions of the loan documents and explain some of the important considerations when definitive loan agreements are negotiated. Effective lenders must strike the right balance between protecting the bank and creating a workable document for the cust
We understand that there is a fine line between spam and marketing. However, banks dramatically underutilize email marketing to drive business. We highlighted a case study not too long ago where a couple simple reminders can help boost deposit balances and improve profitability.
A couple weeks ago, we covered 3 of the best, and most underutilized commercial lending prospecting tools (HERE). Due to multiple requests, we build on that today and show lenders and business development officers how to derive contact information out of thin air. As we pointed out, the art and science of commercial banking sales isn’t taught by traditional education and is largely ignored in banking schools, conferences and training programs.
Readers of this column know that we are big experimenters with artificial intelligence. We use it to set strategy (trying to figure out what really drives bank performance), use it in our loan pricing model (to offer suggestions of improvement) and to assist in credit analysis. We have also experimented with “smart systems” in a number of areas including compliance, HR, credit analysis, writing Suspicious Activity Reports and even writing this column (and you never even knew). Some of these applications are amazingly ready for prime time while others have a ways to go.
One difference between a great commercial lender and an average commercial lender is the understanding of loan documents and insightful knowledge of key terms found in loan documents. In this first part, of two, we will consider the structure of common commercial loan documentation and some finer points about working with these agreements and terms.
Borrower’s and Lender’s Objectives
Last week, Chase joined the ranks of Capital One, USAA, Frost Bank, OneWest, Huntington, Northern Trust and others and announced that in August, the Bank will no longer charge for overdraft transfers on its retail or small business accounts. In addition to eliminating the $10 transfer fee charge, Chase will also not allow customers to draw on their credit card line to fund overdrafts and will thus limit transfers from savings and established lines of credit. Why are these banks doing this and is this a trend?
Last week we had a meeting that few banks have. It was a rarity for us, but it was eye-opening for all that attended. It brought an important clarity about the future, a clarity that would be helpful for any bank to achieve, no matter what their size. This meeting was an asset-liability committee meeting (ALCO) of sorts, but it was also strategic.