October 2017

Game Theory on Picking Halloween Candy And Loans

Bank Game Theory - Competing For Loans

Many parents have dealt with the issue of how to divide up Halloween candy among siblings. It’s not easy. If all houses gave out the same candy, it wouldn’t be a problem. But houses give out different candy, or they allow you to choose, and those in the front of the pack had different choices as those in the back. Whatever the case, candy is not all the same. As a result, candy is distributed unevenly forcing parents that are concerned with equality to employ some game theory.

Can Banks Use The Taylor Rule For Forecasting?

The Taylor Rule in Banking

We do not often blog on theoretical topics like economic models.  We prefer to engage in the practical applications in banking that can translate to direct and immediate benefits for our bank readers.  However, in the case of the Taylor Rule, we see an intersection of the theoretical and practical that is worth discussing.  In 1992, John Taylor invented an interest rate forecasting model, and this same individual is now being considered for the Federal Reserve chair position, or possibly the vice chair position.  Regardless of how the Federal Rese

Using the Right Tool For Fixed Rate Loans

Better Lending Tools

Everyone agrees that using the correct tool for the job is an important rule for successfully completing a project.  Using a sledgehammer on tacks will leave dents, and applying a screwdriver to move boulders will likewise be equally counterproductive.  The same rule applies in banking, and most community bankers are well aware of this.  Community bankers appreciate that their project is very different than the projects at national and regional banks.  Community banks have different business models and different customers compared to the nation

The Definitive List of 2018 Treasury Management Services By Bank Size

Updating Your Bank Treasury Management Platform

Next to digitizing the credit process and allowing for online/mobile account opening, building out your commercial treasury management platform should be under consideration by every bank over $700 million in asset size. A good treasury management platform helps acquire valuable commercial customers, assists in building balances, generates fees and, most of all, dramatically boosts the lifetime value of customers by jumping up retention rates.


The Role In Relationship Banking

Retail Risk in Lending And Being Amazoned

Borrower Risk From Disruption

If there is one bank loan type that is changing, it is lending to small businesses and retail properties. While the credit of other products ebbs and flows with the business cycle, the complexion of many small business loans and commercial real estate (CRE) loans to retail projects are changing. This means of all the lending categories, underwriters need to pay the most attention to retail. Having a major anchor tenant such as a Sears, Macy’s or a grocery store used to be important to banks both to stabilize credit and to drive traffic to the rest of the tenant base.

15 Presentation Tips For Bankers

Making Bankers Better Presenters

Almost every banker will find at some point having to present to an audience.  Whether you will present to your peers, the board of directors, a group of prospects or your direct reports, you will need to make prepared remarks in front of a group of people. In particular, we are huge advocates of leveraging your bank’s expertise and passing that on to your customers in the form of client events, educational sessions, and community workshops.

Community Bank Strong - Hurricane Response Video

Community Bank Disaster Response

Within the last two months, several parts of our country have endured devastating natural disasters.  From Hurricane Harvey’s initial impact in Texas to the dangerous wildfires wreaking havoc in the Pacific Northwest and northern California, our communities have faced many unexpected challenges.  In light of these difficult experiences, we are reminded time and again of the resolve and character of our people within these communities, and specifically within our banking community.


Using WiFi Analytics In Your Bank Branch For Performance

Leveraging Wifi Analytics in Banking

If you make the argument that your bank’s brand is all about the face-to-face visit and you believe branches are more important than ever, then it makes sense that you should be optimizing your traffic to drive customer engagement and sales. After all, your branch is the most expensive marketing tool you have so to improve bank performance you should be leveraging that traffic. In this article, we look at some experiments we are doing by leveraging data from our customer’s cell phones to boost engagement.

What Happens When Your Bank Blames The Competition

Accountability in Banking

It is easy to place blame on items outside of your control – competition, interest rates, bad luck or a million of other reasons. However, a hallmark of a good banker is their ability to take responsibility for actions, be humble and take steps to ensure future success. While there are qualitative reasons why this is true, in this article we will look into the quantifiable reasons why banks and bankers that take responsibility for their actions are better served.


The Study