Banker To Banker

Digital Banking Platforms

Not only are the NCAA Basketball brackets set, but we have finalized our digital banking competition as well. While our criteria stood the test for a couple of hundred banks that commented on it or we had interviews with, we have had to expand our brackets from 18 to 24 contenders as it seems that we left several off.

 

Our (Semi) Final Criteria

 

More Profitable Customers

Every banker is comfortable using averages to describe financial performance.  We all use mean, median or mode to help explain and understand financial performance and historical achievement.  Unfortunately, analyzing performance based on averages impairs success for many banks.  For example, on average a bank’s achievements are reflected in the income statement and the balance sheet, but that average is composed of many products, relationships, branches and bank officers whose respective performance is widely dispersed above and below the average.  Understanding which products, customers a

Commercial Loan Scoring - Retail Building

In addition to traditional underwriting, some banks utilize a scorecard to rank their commercial properties. Projects are run through a scorecard and then rated on a numerical value. For banks without a credit or pricing model that provides a probability of default and expected loss, the scorecard allows an intermediate way to compare loan quality. In this article, we take a look at a sample scorecard and give banks some examples of how to use the methodology for better commercial real estate (CRE) underwriting and pricing.

 

The Successful Bank Strategist's Deck

Bank strategy is a year-round endeavor and the act of strategic planning has never been more important. A good bank strategy will set your institution apart from other banks and help it generate an above-average return on capital. More than a regulatory checkbox, a budgeting process, a fantasy or a regurgitation of someone else’s plan, the right strategic plan will provide a roadmap to create franchise value. If strategic planning is important to you, we have a tool for you.

 

The Strategist’s Deck

Exceptional Customer Service - Picture of a car repair shop

Les Schwab Tires is still going strong but back in the day it made a name for itself with a signature move - Whenever a prospective customer would pull in the driveway, a member of the staff would run up to the car with a big smile on their face. The energy often startled the driver who wanted to know what was going on. The employee would then explain how important the customer was and that running to the car was just one of the many ways the Company shows their dedication to service.

 

Bank Sales - Picture of two businessmen shaking hands

Many community bankers are looking to increase profit growth, and management teams are focusing on cross-sell opportunities to accomplish this objective.  For the banking industry, unlike many other industries, upselling and cross-selling has a high and disproportional impact on profitability.  With proper tools and strategies, community bankers can upsell and cross-sell their products to maximize profitability.  In this article, we will consider the common features

Banking Platform Choices - Picture of basketball

It’s March, so that means tournament time – the Zags, Cavs, Blue Devils, KCats, Heels and, of course, our dark horse, FL State. Along with college basketball, it also means we update our strategy on bank delivery transformation. This year, we focus on taking a look at all available digital banking platforms to see which fits what type of bank. We will do this in an NCAA college basketball format (‘Tis the season) with the goal of choosing the best platform given a set of predefined criteria.

Focusing on Mobile Banking - Picture of Man looking at his mobile phone

Yesterday, we looked at overwhelming data that shows, when given a choice, bank customers will use a variety of banking channels to complete a transaction such as account opening. In fact, 40% of customers, as of the end of 2018, used multiple channels such as phone, online, branch, call centers, and mail to open an account.

Bank Technology Strategy - Picture of laptop with banking application open

Go to any bank conference or talk to any consultant and you will hear how your bank must be able to handle transactions wherever and whenever the customer wants. Retail and commercial customers must be able to start an application or transaction in a branch, update their information on their phone in the parking lot and then finish off the effort at night, at home on the laptop after everyone has gone to bed. The problem is, pulling off proper omni-channel banking is ninja-level in complexity.

The Strategy of Bank Technology - picture of a mobile banking app

Banks think about technology as an added cost. Adding person-to-person payments, online account opening, a data lake, or any other piece of technology is sometimes talked in terms of “being defensive” and an “additional cost of doing business.” Not only is that 180 degree the wrong way to view technology investment but using that framework will lead to sub-optimal decisions that could potentially hurt a bank’s business model. In this article, we explore a person-to-person payment case study and show what we believe is a superior decision methodology.

Pages