Banker To Banker

This is one of the more common fraud pattern for small dollar loans that was highlighted by Clarity at nonPrime101 but one that all account officers should be on the look out for. Note the opening and closing of multiple accounts and the cell phone number change. 

 

Fraud Pattern

Interest Rate Risk to Commercial Real Estate Lending

Given that rates are poised to move up in 2014, this could negatively impact commercial real estate (“CRE”) loan quality. Fortunately, rising rates create some offsetting forces that could help or hurt underwritten CRE loans. The net impact of these multiple forces is why bankers get paid the big bucks to take the risk.  To better understand these forces, we break this down into a quick interest rate risk primer for commercial real estate that we believe every lender should know.

 

Bank Pricing

In case you missed it, Chipotle’s already expensive burrito is going up in price again starting in January. What is going on? Are margin’s shrinking, costs going up? The answer to Chipotle's pricing power lies in the strength of their brand and it is a good lesson for banks.

 

Bank Email Marketing

We understand that there is a fine line between spam and marketing. However, banks dramatically underutilize email marketing to drive business. We highlighted a case study not too long ago where a couple simple reminders can help boost deposit balances and improve profitability.

 

Bank Marketing

A couple weeks ago we discussed Part I of the best tactics we learned for building a bank customer base over the holiday season. Traditionally, while the holiday season is one of the worst times to market, this campaign is designed to take advantage of bank customer behavior and put the odds back in your favor. Since growth is so difficult to come by these days, we are looking for every advantage we can get and this campaign starts the year off with forward momentum.

 

Thanksgiving Banking

Thanksgiving is a special time when we take a break from our hectic lives and make things even more hectic by trying to cook a four course meal, while pleasing family members and fighting holiday travel. It is a time to rediscover why, despite loving our family dearly, we are thankful we don’t live with them. It is also a time of honored traditions and to understand that for generations before you, going all the way back to the Pilgrims, half the family is going to be on your case for overcooking the turkey and half will be warning you against the evils of salmonella.

Bank Decision Making

Say what you will about the morals and politics of President Kennedy, but his administration did more for bank decision making than almost any other group of people. After a horrible set of decisions connected with the Bay of Pigs in 1961 Kennedy vowed never to make those mistakes again. As a result, he commissioned an “after action review” that was uncommon at the time, but is now standard procedure for the military, highlighting some key failure points in the decision making process of the operation.

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.

Lending to Contractors

If you drive a fair bit, you probably agree with us that gridlock is bad, but it is starting to get better. It used to be we used to drive to work only to use the bathroom and then start to commute home. Now, with many of the major Stimulus Package projects coming to an end, we can make it to work and discuss the latest episode of Homeland before having to turn around - And this is a problem.

 

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.

 

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