Tag: Credit Cards

Changing Payments and Bank Strategy

Bank Strategy
BANK STRATEGY

One item that should be on every bank’s strategic horizon is how to adapt to the changing face of payments. If you are one of those bankers that say, “Cash won’t go away in my lifetime,” you could be right. However, we would posit that the sentiment is the wrong way to frame the challenge and the rationalization that you don’t have to worry about cash, checks and the payment channel will likely lead you to disaster. In this article, we highlight the newest data from the Fed and what it might mean for every community bank.

 

One Of The Best Risk / Reward Lending Sectors In Banking

Lending Sector Profitability

A couple weeks ago we ran an article on how to price loans for default volatility (HERE). In it, we discussed how to price in the variability around default risk and showed multifamily and owner occupied commercial real estate examples. Many banks saw our data on ten-year loss rates and volatility around credit cards, commercial and residential constructions and patted themselves on the back that they have no or limited exposure to each of those sectors.

Bank and School Partnerships

Bank and School Partnerships

The latest Consumer Financial Protection Bureau’s report HERE sends a message to banks and highlights the current status of credit marketing in partnership with educational organizations. In this space FIA (the old MBNA), Capital One and UMB are the three largest. While the trend towards more reasonably based bank products and fee disclosures have been changing for a while, we now can get to see the outcome.  

 

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