Banker To Banker
If you are getting up there on loans-to-deposits and you are worried about bringing in more deposits the first question to ask yourself is, are you devoting enough resources to gathering deposits? Do you have a Chief Deposit Officer? Do you compensate for deposits? Do you have an effort around creating new deposit products? Do you have a marketing plan for deposits? The likely answer is “No” to most of those questions, which is why you probably have an issue in deposit generation. In this article, we highlight the webinar that we recently did on marketing for deposits.
Sometimes how we choose to measure something can lead to incorrect conclusions. While mathematically 30 is 50% more than 20, a 30-year amortizing loan is not 50% riskier, or 50% longer than a 20-year amortizing loan. The amortization term is often a poor measure for bankers to use to make credit decisions. In this blog, we will explain why the amortization term can be a misleading measure, why bankers should be using average life, and we will provide readers with a downloadable average life excel calculator for bankers to use for their own analysis.
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.
Bankers should consider the shape of the yield curve when structuring and pricing loans to maximize return and reduce risk. The shape of the yield curve can also help lenders understand borrowers’ needs and better position the bank against competitors.
Starting in 1995, star-analyst Mary Meeker, “The Queen of the Internet,” co-founder at ReCode, and partner at the investment firm Bond Capital delivers a 30-minute presentation on the state of the digital landscape. The presentation is always the talk of the digital town as it has been the definitive source of major trends backed by quantitative evidence. This year, a couple of weeks ago, Mary gave the 2019 update and the presentation stretched to 333 slides.
The largest problem with bank innovation is that we see or hear about a sexy piece of technology at a conference or at another bank and then acquire it. The new piece of technology ends up solving a known problem but in the process actually creates more problems, and risk, than it solves. It’s called the “Shiny Object Syndrome” (SOS), and it could be sowing the seeds of destruction for many banks. In this article, we look at the seven strategic questions you need to answer before acquiring any piece of technology.
When your bank places advertising, partners, produces content or conducts events, it is helpful to statistically know which subject matter is most, and least conducive to banking. For example, by our marketing data, if you are interested in banking, and getting the most out of your banking relationship, you have a 31.4% probability of also being interested (to the point of engaging with content) in travel.
Many community bankers are now considering how to position their asset and liability portfolios for declining interest rates. On the one hand, interest rates should be falling more, and on the other hand interest rates are being talked down against a backdrop of still strong economic data.
Recent data, just released from Real Capital Analytics, shows that since the start of the year (month-end April), commercial real estate (CRE) has appreciated 2.6% in 2019. This is good news for banks as it shows that every significant loan sector likely has improvements in both debt service coverage and loan-to-value. In major markets, this appreciation has been closer to 4.9%, and in secondary markets, price appreciation has been 1.5%. In this article, we take a look at the details to help banks better manage their pricing and risk.
You have probably heard that digital display ads, those small billboards that pop up on mobile, social channels and websites are worthless. While they are some of the least effective advertising we do, since you are buying attention, bankers need to consider display ads for every marketing campaign.