From a business standpoint, there is no one good way to make money running a bank. Successful banking is the result of doing a lot of little things right.
Tag: Bank Business Model
In a recent blog (HERE), we discussed why now may be an inopportune time for banks to rely on a pay-for-risk banking model. In a pay-for-risk model, banks emphasize generating revenue by charging for risks that they take.
As the last day of the Western Independent Bankers wraps up, we thought we would highlight one of the other top presentations that made us think. Joe Cady, Managing Partner from CS Consulting, presented his data on “The Best Business Models in Community Banking.” Given that 90% of banks are re-evaluating their business models, according to KPMG, Joe looked at 59 banks from 2006 to 2011 that had an average ROA of 2.2x and an average ROAE of 19%. The study excluded credit card and other specialty banks.