Pub. 3 2024 Issue 4

Finding the right price for a customer’s deposits or loans can be a difficult balance. Relationship pricing involves looking at your customer’s entire relationship of loans, deposits, fee income and other products to determine the customer’s overall profitability and using this information to make strategic decisions on pricing for renewals or new products. This pricing strategy can have a significant effect on both customer relationships and your bank’s overall profitability.

It is with heavy hearts that we share the passing of James Leroy Smith and Frederick John Bauer.

There are a whole lot of anomalies in community banking in the waning stages of this restrictive Fed cycle. One of the overriding themes is the sheer duration of the process. We’re now fully one year past the last tightening, which has left the effective overnight rate at 5.375% since July 2023, and given rise to the “higher for longer” sound bite. The past six tightening cycles have averaged well under a year between the last hike and the first ease. We will be soon approaching another record: the longest-ever pause between the last hike and the first cut is 15 months, from June 2006 to September 2007.

Check use has declined for years as consumers gravitate toward faster, more digital transactions. Yet despite the slow and steady phasing out of checks, the financial sector has seen a recent uptick in check fraud.

In the dynamic and highly regulated world of banking, leadership plays a pivotal role in navigating complexities and driving organizational success. Mentorship stands out as a critical tool in developing the next generation of leaders.

Navigating the world of finance can be particularly daunting for startups, with misconceptions abound regarding their eligibility and the practicality of securing Small Business Administration (SBA) loans. As CEO of B:Side Capital, I’ve encountered numerous entrepreneurs who are either unaware of their options or are dissuaded by myths surrounding SBA loans. This article aims to debunk these myths and lay out the facts about SBA loans for startups, providing clarity and direction for new business owners seeking financial support.

Businesses are constantly seeking ways to stay ahead of the curve and effectively reach their target audience. While having an in-house marketing team can be incredibly valuable, there are undeniable benefits to outsourcing certain aspects of your marketing efforts.

The biggest challenge that banks are facing in today’s competitive landscape is cost. The pandemic changed the world as we know it, and ATM transaction volume was not immune to these changes. Since COVID, transaction volume at ATMs has declined by about 10-20%. Some markets are different from others, but the decline is showing up everywhere. ATMs have a high fixed cost component, and when transaction volumes decline, per-unit costs increase. Add stubborn inflation to the mix, and the result is a quite significant and highly visible cost challenge.

Artificial Intelligence (AI) is transforming the banking industry, including compliance with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations. While AI offers significant advantages, such as enhanced efficiency and improved detection of suspicious activities, it also introduces unique risks. We will explore these risks and provide insights into how community banks can manage them effectively.