Silo Management
Printer-friendly version (PDF) Years ago, I answered a call from the head of a bank with assets below $1Billion. Until then, FIC had focused on regional and what were once…
Fintech Consolidation and Banks
For as long as Fintech lenders have existed, traditional bankers have said, “Wait until there is a recession,” suggesting that many of these lenders would face credit problems and disappear. They may have been right. This Tuesday Enova International, what I would term a subprime consumer land and business lender, operating in the U.S. and Brazil “announced that…
Don’t Sell, Grow
Last weeks’ newsletter discussed factors that may lead some banks to decide that now is a good time to sell. Those factors include: reduced interest rate margin, increased credit losses, the potential need for new capital, costs related to the virus, the changing role of the branch, and several others. One friend commented that I had presented a checklist of despair.
Sell?
Over the years I’ve attended many conferences in which senior bankers meet over cocktails and informally discuss sale or merger opportunities. In past years there have been more buyers than willing sellers, since potential sellers saw their value with a different set of eyes than potential acquirers, eyes that viewed their franchises as being of great value. That may be changing.
Bankers, Ready for the Pitchforks?
Bank “Linked In” posts often begin “We’re so proud that…” followed by the announcement of a community investment or CRA related action. Understandably, senior management has been communicating what they are doing for their communities and lower income groups as financial institutions scramble to respond to the current political environment and avoid becoming a target of protests and social activists.
Banking’s Biggest Growth Area: Compliance
Printer-friendly version (PDF) An article in this week’s BAI Banking Strategies chronicles the cost of compliance for financial institutions: “The cost of compliance for the industry is already staggering—upwards of…
Deposits and Data
Printer-friendly version (PDF) In the past few days, CNBC reported on the huge increase in deposits sitting in banks and Reuters printed a UK-focused story on the need for banks…
Maybe Nothing Changes
Printer-friendly version (PDF) At first I thought the pandemic would result in positive changes in banking, BIG changes that ultimately would benefit line bankers, the customer, and the overall industry….
Overdraft Fees and Credit Card Rates Matter…Unfortunately
Printer-friendly version (PDF) During the past week big banks have been broadcasting their horror at the murder of George Floyd and their eagerness to contribute to various causes to demonstrate…
Coronavirus: Four Takeaways
Printer-friendly version (PDF) A Tuesday news story reports that according to the Small Business Administration banks with less than $10 billion in assets issued about 60% of loans in the first…