Tag: Bank Performance

How Come No One Is Teaching This In Banking?

Teaching Better Banking

Part of the problem with banking education is that it is incomplete. Banking schools like Stonier and Pacific Coast Banking School are good but they just teach part of the picture. They can talk about how to underwrite a loan or understand risk, but they leave a chasm in understanding about the true risk of underwriting. Outside of banking schools, most loan officers these days are self-taught practitioners in the art of lending and have learned their knowledge through a series of trials by fire.

How To Quantitatively Build a Customer Base This Holiday Season (Part I)

Optimizing holiday cards for return

Over the years we have experimented and collected data on all sorts of different approaches to building a customer base during the holiday season. If you are the sentimental type, this approach likely isn’t for you as this combines sentiment with a heavy dose of quantitative data culled from years of experimenting. The goal here is to not only spread sincere thanks, but build business in the most efficient manner possible.

 

5 Popular Economic Indicators Banks Use That Are Unreliable

Bank Forecasting

Given that it is forecasting time again for next year’s budget, banks often use a variety of economic indicators to help forecast demand for credit, liquidity, and inflation. Often time, we will see many of these indicators in ALCO reports or strategic plans. We have tried a great many indicators and have tracked the effectiveness of each one. Today, we will cover some of the more unreliable ones, while tomorrow we will cover the ones that work.

 

10 Important Pieces of Data Banks Need To Collect On Commercial Customers

Predictive Data at Banks

While most banks understand the important data points when it comes to loans or deposits, most banks still could use help on collecting some of the basic information about their customers. The age of utilizing customer data to get predictive about risk, customer profitability and marketing is just beginning at banks so this is a new field for many. For example, a change in number of employees at your borrower is correlated to both credit risk and profitability.

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