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It allows employees to not worry about interest rates by eliminating the risk and complexity of trying to manage a balance sheet. Creating and executing on a strategy that is “simple,” tends to be difficult. To be clear, complexity isn’t bad, it just has more risk and is harder to manage. We need one good one.
Despite that increase in profitability, banks need to be mindful of how they manage their branch and customer base to increase profitability further. The operative question is: given online and mobile banking, what is the new role of the branch? Our point here is branching isn’t a passive activity.
Is WiFi necessary in the branches? Is employee Internet usage managed? Ethernet offers greater change management flexibility, additional stability and a desirable cost structure at higher bandwidths. Smaller regional niche networks. Today it is Ethernet. We see innovation and new services first from these vendors.
Before 2022, says Thomas Grottke, managing director at Crowe LLP, “a lot of factors were going right. I counsel my community banks to be careful about extreme growth in rising rate environments,” says Jim Adkins, managing partner at Artisan Advisors in Barrington, Ill. Consider your branchstrategy. Connors, Jr.,
Another day, another convoluted organizational structure that includes “small business bankers” that are dispersed into the branch network to shore up branch capabilities. If not small business bankers, it’s “cash management officers”, or “business development officers”.
Is your bank effectively mitigating the risk of 'managing to metrics'? The phony-account scandal at Wells Fargo illustrates how sales quotas can incent bad behavior. Or could it be in danger of becoming a 'cargo cult'?
The scorcher at Wells is giving some community bankers an opening to differentiate themselves from larger institutions that seem fee-dependent or "too big to manage.".
Two top executives said the scandal-plagued bank has managed to minimize the financial damage and can continue to grow amid some reforms. Yet they acknowledged that the full toll has yet to be realized, and the company announced it had significantly raised its estimated legal exposure.
For its commitment to improving the long-term health of depositors, and a nimble, failure-is-not-a-dirty-word approach to innovation, USAA has earned an honor American Banker normally bestows on a single individual.
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