Banker To Banker

The Future of Libor

Earlier this month, The Federal Reserve released a framework that would allow the creation of a term SOFR market based on SOFR futures. One of our milestone steps that were required before CenterState switches over to the Secured Overnight Financing Rate (SOFR) was a robust term market and creating a framework was the first step. In this article, we give an update on that SOFR term market, discuss the latest with the BYI Index and provide banks with an updated timetable.

 

SOFR Term

Bank Marketing Personalization

Our article early this week on bank website productivity (HERE) garnered an avalanche of feedback. One of the most common questions was to expand on more details around personalization. Since we are in the process of upgrading our site to handle personalization, we wanted to explain the what, how and who of our effort in case you are looking to jump your website’s capabilities.

Deposit Management

Every year we analyze the historical cost of funding earning assets (COF) for all banks in the country.  We perform this analysis on every bank from 1990 to the present to understand the drivers of COF, how banks can improve performance by controlling their COF and how funding costs will behave in the future.

Bank Website Redesign

If you are looking for the most undervalued asset on your bank’s balance sheet, it is probably your website. A good website gets ten times the traffic that the branch network gets and can dramatically shorten the sales cycle. Since most prospects and customers attempt to check the site for information, a website focused on the customer experience is central to increasing the site’s efficiency. In this article, we touch on some easy improvements that banks can make to turbocharge both usability but conversions.

 

Digital Banking Platforms

Not only are the NCAA Basketball brackets set, but we have finalized our digital banking competition as well. While our criteria stood the test for a couple of hundred banks that commented on it or we had interviews with, we have had to expand our brackets from 18 to 24 contenders as it seems that we left several off.

 

Our (Semi) Final Criteria

 

More Profitable Customers

Every banker is comfortable using averages to describe financial performance.  We all use mean, median or mode to help explain and understand financial performance and historical achievement.  Unfortunately, analyzing performance based on averages impairs success for many banks.  For example, on average a bank’s achievements are reflected in the income statement and the balance sheet, but that average is composed of many products, relationships, branches and bank officers whose respective performance is widely dispersed above and below the average.  Understanding which products, customers a

Commercial Loan Scoring - Retail Building

In addition to traditional underwriting, some banks utilize a scorecard to rank their commercial properties. Projects are run through a scorecard and then rated on a numerical value. For banks without a credit or pricing model that provides a probability of default and expected loss, the scorecard allows an intermediate way to compare loan quality. In this article, we take a look at a sample scorecard and give banks some examples of how to use the methodology for better commercial real estate (CRE) underwriting and pricing.

 

The Successful Bank Strategist's Deck

Bank strategy is a year-round endeavor and the act of strategic planning has never been more important. A good bank strategy will set your institution apart from other banks and help it generate an above-average return on capital. More than a regulatory checkbox, a budgeting process, a fantasy or a regurgitation of someone else’s plan, the right strategic plan will provide a roadmap to create franchise value. If strategic planning is important to you, we have a tool for you.

 

The Strategist’s Deck

Exceptional Customer Service - Picture of a car repair shop

Les Schwab Tires is still going strong but back in the day it made a name for itself with a signature move - Whenever a prospective customer would pull in the driveway, a member of the staff would run up to the car with a big smile on their face. The energy often startled the driver who wanted to know what was going on. The employee would then explain how important the customer was and that running to the car was just one of the many ways the Company shows their dedication to service.

 

Bank Sales - Picture of two businessmen shaking hands

Many community bankers are looking to increase profit growth, and management teams are focusing on cross-sell opportunities to accomplish this objective.  For the banking industry, unlike many other industries, upselling and cross-selling has a high and disproportional impact on profitability.  With proper tools and strategies, community bankers can upsell and cross-sell their products to maximize profitability.  In this article, we will consider the common features

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