Plansmith Blog

Before we get into our own thoughts (or, what you might do to take advantage of the situation), we thought it would be helpful to include some other thoughts around the industry. The Financial Brand, if you have never landed on their site, is always a good first source. Their “3 Problems with the Wells Fargo Cross-Selling Scandal” by Ron Shevlin of Cornerstone Advisors, talks about the inequities created for the honest people in this story: 1) the employees who did not cheat and 2) the consumers who were harmed, neither of which stands to see compensation. But it’s Shevlin’s fourth problem (yes the title is 3, but he added a 4^th) that helped us decide to give our readers some suggestions.

An excerpt from the text:

There is a lot of buzz surrounding millennials and their unique psychographics and behaviors, especially with regard to buying habits. But it's not just millennials that are exhibiting fascinating (and at times, frustrating) preferences. As Jim Perry of Market Insights and #BANKSOCIAL discusses in his article, Modern Demographic Cohorts, Defined By Expectations, Want The Same Things From FIs, other generations, including baby boomers, are stepping outside of their perceived demographic[s] and assimilating with attitudes, beliefs and even behaviors of diverse age groups.

True or False

A budget is a once a year process for an institution.

True: A budget is a process typically done once a year to establish targets/goals of measure to be used as guidelines throughout the year.

Risk Profile, Strategic Planning, Risk Appetite – all this and more in the Supervisory Insights April 2016 edition and its companion video released in July. Remember when these were all discussed independently? Examining each within the Corporate Governance Program is now the new hot button with regulatory agencies.

Most say strategic plans end up on the shelf!

Plansmith Corp. recently conducted a survey of CEOs and CFOs on the role of community bank strategic planning within their organization. It was not surprising to learn that 90% said they have a strategic plan, but a closer look revealed some interesting statistics on the implementation of their plans. 

Not knowing where to start when asked to complete a bank budget or forecast can be nerve-wracking at times. I'm sure we’ve all been there, myself included. Sitting in front of a computer asking, "am I calculating these prepayments correctly? How are others doing this?" The best thing about an open roundtable forum is you’re all in the same boat using the same model! Being able to relate to one another with real life experience and build long lasting relationships with peers can’t be found on the Internet. That's why we started holding Financial Compass Roundtables; and so far, they've been a phenomenal success, not only for us as facilitators, but for the community bankers that actively craft the discussion.

Compliance

The cost of regulatory compliance, declining product prices, and technological threats from new entrants all narrow the path to future profits. Even if the yield curve improves, these threats will force community banks to search harder to improve earnings. It can’t be done on the fly; only strategic thinking and careful planning in the context of your market and the opportunities available will be successful. Would you coach a Super Bowl team without a playbook? Probably not.

Thank you to everyone who attended the March 2016 Financial Compass Roundtable!

We are pleased to announce Ireland Bank - Malad City, ID  as our fourth and final April 2016 Community Banking Month winner!

We are pleased to announce Oxford Bank & Trust - Addison, IL  as our third  Community Banking Month winner!