Chris Nichols

Why The Pandemic Just Made Identity and Access a Strategic Imperative for all Banks

Identity Management and Banking

Underappreciated in the banking industry is the growing role of identity and access in banking. As banks build their digital strategies, we need to stop and think about how we know our customers (identity) and how we know that the verified customer we believe is trying to access a banking channel is really the customer we think it is (access). In this article, we explore the concepts of identity and access management (“IAM”) and how they should fit into every bank’s long-term strategy, especially given the popularity of privacy initiatives.

 

Overcoming Lending Challenges for Community Banks

Commercial Lending

Covid-19 and the responses to the pandemic are exerting various pressures on community banks.  How a community bank underwrites and books commercial credit through the end of 2020 will have a significant impact on the bank’s profits and credit quality through the entire next business cycle. In this article, we focus on four key steps of what banks can do to continue to add earning assets to their balance sheet.

 

New PPP Borrower Data That Will Surprise You

Small Business Lending

Recent survey data from borrowers that took a Paycheck Protection Program (PPP) loan was surprising as more borrowers than we first expected will be using the EZ Form and fewer borrowers than expected will be using the 24-week covered period. In this article, we breakdown some of this data and then discuss how it might impact your PPP Forgiveness Process in the coming months.

 

PPP Survey Data

 

Here Is What Lenders Can Learn From Investment Officers

Capital Market Lessons for Lenders

With a low and flat yield curve, generating profits through investments has become more challenging.  There are some very poignant lessons that CFOs are learning about investment strategies that apply directly to commercial lenders.  In this article, we look at several basic capital market precepts that the average investment officer lives with every day but lenders may not notice. 

 

How To Optimize Workflow Given The New PPP EZ3508 Form

Managing PPP Forgiveness

 The release of the new Paycheck Protection Program (PPP) Forgiveness application 3508EZ (EZ Form) will cut down on processing time for both the borrower and the bank but merits a quick review in order to optimize processing efficiency. If you are a fintech, or a bank creating their own technology, the EZ Form threw a major curveball as you had had to restructure your code and workflow to figure out if an applicant qualifies. In this article, we highlight several items to consider when building the EZ Form into your new process.

 

Lessons We Learned From Hedged Loan Modifications

CRE Loan Restructuring

Since March of this year, many community banks have been working to provide cash flow relief to customers who have sound business models but require some temporary payment restructuring caused by business disruption as a result of the Covid-19 pandemic. CenterState has been involved in those same restructurings both as a lender and as a hedge provider under the ARC program.  We have learned some valuable lessons that we would like to share.

 

10 Resource Saving Tactics While Finalizing PPPFA Workflow

Improving PPP Efficiency

This week is the first week banks could potentially take Paycheck Protection Program Forgiveness applications. However, most banks are holding off as we do not have a final application, due out this week. WHEN you release your process merits some analysis, and in this article, we discuss 10 important considerations to decide on as you finalize your process.

 

When to Start Your Process

 

How To Talk To Your Kids About Paper Statements

Bank Efficiency

The now-famous Ally Bank commercial of 2012 that asked two kids if they want a pony goes down as one of the most effective in banking history. Two girls are asked if they want a pony, and while the girl in blue gets a toy pony, the girl in orange gets a real pony. Disappointment ensues to the Blue Kid and the moral, of course, is even kids know it’s wrong to treat others differently. While an effective commercial and a nice lesson for the grade-school set, it is a poor lesson for bankers not to mention both intellectually and emotionally disingenuous.

 

How PPPFA Will Impact PPP Staffing and Your Bank’s Forgiveness Workflow

PPPFA Staffing

True to form, last Friday, President Trump signed into law a Paycheck Protection Program (PPP) change giving us yet a new acronym and the need to scramble to figure out how to amend our respective Forgiveness program to accommodate. The good news is that the new law, the Paycheck Protection Program Flexibility Act (“PPPFA”), addresses many concerns of our small business customers. Since these changes now radically offer both production workflow and profitability, in these changes, we highlight the impact of PPPFA and discuss some ways to optimize the process.

Should Last Week’s Jobs Report Change Banks’ Outlook For Lending?

The Lending Environment

Last Friday’s economic data indicated that U.S. nonfarm payrolls rose by 2.5 million in May, compared with expectations for a decline of 7.5 million. In April, nonfarm payroll fell by 20.7 million in the largest single-month drop in records dating back to 1939. Throughout last week, interest rates rose (the ten-year yield rising by 25bps) and the yield curve steepened relentlessly - spread between five-year notes and 30-year bonds widened on Friday to 120 basis points, a level last seen in December 2016.

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