July 2017

The Four Layers in the Cube of Bank Strategy

Better Bank Strategic Planning

Bank strategy can be thought of as a multi-layer cube. In this article, we present the four horizontal layers and then follow this article up with the vertical layers to round out the outstanding of the basic framework that can be used to set any bank’s strategic plan. The reality is that many banks fail to plan their strategic plan and don’t think through their framework. Here, we provide a successful and proven set of layers that allows banks to start from a vision and produce the tactical tentacles of strategy that makes execution clearer.

 

Choosing The Right Loan Index For Your Bank

Better Loan Pricing

Community bankers are currently paying close attention to commercial loan pricing given near-record tight credit spreads and increasing interest rate risk.  The vast majority of commercial loans in the market are priced to an index plus a credit spread.  Determining the appropriate credit spread that will win the business and provide sufficient return to the lender is a key element of RAROC (risk adjusted return on capital) analysis.  However, the underlying index to

How Your Bank Can Stereotype Customers To Boost Sales

Bank Marketing

If you are reading this, you are likely a high performing banker. Like us, you are likely passionate about banking, looking to improve, and you are more quantitative than the average non-reader. While we suspect that supposition to be true, we really have no idea. Regardless of how you perform, the fact that we labeled you as a high performing banker means that you are more likely to finish this article, more likely to self-identify with being a top performance, and, as a result, you are more likely to become a top performer.

10 Tips To Format Your Spreadsheet Like a Banker

Professional Standards -The Spreadsheet - Tips

If you are a banker, the public expects, rightly or wrongly, for your spreadsheets to be as tight as your bank vault. The spreadsheet is our stock and trade, and just like no one likes having an unhealthy doctor, no one wants their banker to have a spreadsheet with bad colors, random decimal places and no version control. Over the past several years, we have seen a steady deterioration in spreadsheet quality, and it’s time to turn things around. If you are new to banking, consider this the minimum level of performance.

How Many Steps To Solve Your Customer’s Problem?

Bank Customer Problem Resolution

If your bank truly wants to be known for service, the very first step is to get your problem resolution process right. When it comes to problem resolution, the two metrics that matter the most is the number of interactions required to solve the problem and the time it takes to solve the problem. The less number of touches you have and the faster you can solve the problem, the higher your post-resolution customer satisfaction.

How Using the Rooney Rule Can Help Bank Performance

Bank Board Governance

As community banks, we aim to fulfill our namesake by being a part of, and representing, our communities. Sometimes, however, it is difficult to see that there may be a gap between our banks and the communities that we serve. The NFL had a similar issue before 2003 when they realized the disparity of the demographic between their players and head coaches. There were only two African-American head coaches at the time, out of the NFL’s 32 teams. “The Rooney Rule” changed that.