So why do we keep hearing about “surge” deposits and how important it is to know if you’re holding any? Well, it might be because in the past 10 years, CD balances in FDIC insured institutions have fallen by $880 Billion; yes, that’s Billion with a capital “B.” And while that may be the bad news, the good news is that over the same time period, non-maturity deposits (DDAs, NOWs, Savings, and MMDAs) have grown by $5.9 Trillion (with a capital “T”).
I have been in the banking industry since 1979, and on March 22, 2018 I received a copy of something that I never thought I would see that made me say out loud, “It’s about time!”
It was a letter to Members of the Illinois Congressional Delegation. The content of that letter was to express strong support for bill S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. What surprised me was that it was signed by the presidents and CEOs of 4 financial trade associations, comprised of both banks and credit unions.
So, you decided to open a new branch? This comes after you’ve spent hundreds of thousands of dollars on new electronic delivery technologies. It also comes after we just hit a record for financial institution branch closures. And let’s also add the fact that lobby traffic has reduced by 10 times the rate of those branch closures. Given these facts, how can you know if you’re making the right decision?
As Plansmith’s Director of Client Education, I’m often asked which continuing education programs should I attend and why?
One of my favorite courses that I always recommend is our Compass Advanced Coaching event. Don’t let the title scare you, it’s a great fit for a wide variety of experience levels.
Since the mid-1960s change has been a constant. The only real change is the rate of change. For years there have been predictions of shrinkage in the number of banks – the prediction is finally coming true. There has been a big change in the number of institutions (over 16,000 in 1972 to about 5,000 today). The environments they serve and the ways in which they serve has changed. Competition, consumer attitudes, market demographics, regulations, products, and technology have all had their impact.
For most banks and credit unions the annual budgeting process is just that, a “process” that is far from looked forward to.
The CFO gathers data and input from market managers and department heads. The President and CEO then hand down more information as well as targets and objectives that rarely align with the other information. It's then the CFO's and finance team's job to cobble it all together, make it balance, and deliver results to the Board for approval.
As anyone who has been through it knows, the process itself is not cut and dry. To be honest, it can be downright exhausting.
The saddest thing I see with banks and credit unions is probably not what you'd think.
It's not a lack of passion for people, or even a disparate set of products that fail to match up with customer needs. In fact, banks and credit unions excel at both of these and they play a big role in creating a unique customer experience.
I could continue to list things, but you still wouldn't guess. Why? Because it's something we don't even think about it's so foreign to us.
Smart choice - that's a bold statement. But believe me, I wouldn't use those words if it weren't the truth.
The New Year is a great time to prep and review. That's why I've picked the top 3 Lunch 'n Learns you should review before diving into 2018.