Chris Nichols

How Banks Can Achieve Flawless Execution Like The Military

High Performance Banking

In November 2017, the US Navy positioned three of the world’s largest aircraft carriers off the coast of the Korean Peninsula.  Each day, as the sun first cracked above the horizon, dozens of F/A-18 Hornet fighter aircraft would depart from the three carriers.  With the precision of a Swiss watch, the sleek jets launched from the carrier decks at speeds nearing 200 mph.  Once airborne, they formed into huge attack formations as part of the greatest show of military force in modern history.

 

Here Is The Future For Your Bank’s Cost of Funds

Deposit Management

For any bank not convinced that we face a period of inflation and rising rates, last week was an eyeopener. The 10-year Treasury jumped 21 basis points and the probability higher rates increased. Since rates began to rise in December of 2015, we have now seen a 1.50% increase in rates with four more increases currently built into the market. Outside of the market, the Fed’s Open Market Committee (FOMC) expects another three to four increases in 2019.

More on Using Bank CRM Systems

Bank CRM Applications

In a previous blog (HERE), we discussed why banks should consider implementing a customer relationship management (CRM) software solution and discussed the benefits of such a solution for community banks.  We highlighted the relatively low cost of CRM software and the high return that banks can get on the investment.  We also asked for feedback and got an ear/email full of insight.

Love and What To Do With Your Bank’s Tax Cut Windfall – Part I

Tax Reform and Banking

The Tax Cut and Jobs Act of 2017 (TCJA) presented banks with a rare windfall. Of all the industries in America, banking is one of the most rewarded. Because of where banks sit in the economy, the gift of leverage, and the current strength in the economy, banks now have an extremely rare opportunity to place this new found wealth for long-term good. It is an opportunity not to be squandered. Being Valentine’s Day, there is little doubt your bank would like to show all of its stakeholders some love with your tax savings. The question is – where can it do the most good?

Why Passing On Deposit Assessment Fees Can Hurt Your Bank

Charging Deposit Assessment Fees

After the last recession, Dodd-Frank and the FDIC raised deposit fees which prompted many banks to start including an “FDIC Assessment Fee” in their deposit account charge. The FDIC issued guidance in 2012 that labeled the practice as misleading, so most of those banks just changed the name to a “Deposit Assessment Fee” and kept the practice. One full recovery, one drop in assessment rates by the FDIC and a tax reform change later, and many banks are still at the practice.

How A Customer Relationship Management System Can Change Your Bank

CRM For Banks

At CenterState Bank, we use several customer relationship management (CRM) software solutions at different parts of our bank and know we need to consolidate plus expand its use. Next, to a loan/relationship pricing model, a CRM system is one application that can make a material difference in profitability. CRM helps companies automate and manage the entire lifecycle for customer sales, marketing, acquisition, maintenance, and exit. CRM software is usually used by the customer-focused personnel to maintain contact with customers and improve service.

How Is The Drop in Equities Impacting Loans?

Risk Management

There is an interesting separation between the recent drop in equity prices and credit products. Traditionally, a huge sell-off in equities reverberates through credit hitting corporate bonds first and then bank loan pricing. This time, it is barely happening. Back in late 2007, we saw this “sympathetic coordination” between equities and credit before there started to be legitimate credit concerns beginning with housing and capital markets liquidity. So what is different now?

 

Bankers Need To Know These 6 Laws of Innovation

The Human Side of Banking Technology

Some 30 years ago, Melvin Kranzberg, a professor at Georgia Tech, wrote a series of laws around innovation that all bankers should keep in mind as they deal with innovation. These laws are seemingly straightforward but have a profound effect on how bankers view and react to change. The advantage of understanding these laws is that it places technology in the context of strategy and execution. Innovation is only partly about technology, and these laws have been helpful for us to enlighten our thinking.

Now Is The Time For Loan Hedging

Loan Hedging Swaps and Derivatives

Success in banking is simple.  Offer the right product, to the right customers, at the right time.  The timing now is perfect to accommodate borrowers who want long-term fixed-rate loans, and the timing is also perfect for banks to convert those fixed-rate loans to a floating rate asset to protect the bank.  At CenterState we created a custom built loan product called ARC (Assumable Rate Conversion) program that is currently very popular with our own borrowers, and hundreds of banks across th

Marketing Same-Day ACH for Fun, Profit, and Deposits

Same Day ACH

Since September of 2016, bank customers have had access to same-day ACH credits. When same-day ACH was expanded to include debit transactions four months ago, no surprise, the functionality took off. Same-day ACH grew 138% from Q3 to Q4. The funny part is that, despite its proven popularity, few bank are marketing and many customers don’t know that the functionality is available to them. The same banks that complain and worry about competition from fintech disruptors are slow to adopt and market ACH.

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