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The advent of generative artificial intelligence is about to shift branchstrategy again to re-raise the question – how can we get the most out of our branches? At an average of $1 million per year to operate, the branch is the most expensive per unit channel in banking, given that a good branch serves 2,000 to 3,000 customers.
Instead of thinking traditionally, Gentle Monster pursued a strategy of innovation and creativity to become the hottest sunglass company globally, creating a company currently valued at $900 million. Being months away from bankruptcy, Kim launched a bold five-step plan driven by a strategy around innovation. A modern core system?
A community bank CEO takes a contrarian approach to underperforming branches, staffing up instead of closing them down, and Bank of the West embeds star employees at nonprofits as leadership training. Sexism is less blatant than in the "Boom-Boom Room" era, but women aren't yet treated like equals at the male-dominated Wall Street firms.
In 2003, Bill Burr was a midlevel manager at the National Institute of Standards and Technology where he authored, “NIST Special Publication 800-63. In addition, the industry is being buoyed by independent deployments as banks rethink their brick-and-mortar branchstrategies. That’s not hyperbole. Appendix A.”.
Wells Fargo’s freshly installed CEO made clear Friday that he wants to chart a new course following the revelation that thousands of employees opened phony accounts. But Tim Sloan made few promises about what the megabank will eventually look like.
Apart from the usual queries about prospects for loan growth and strategies for controlling costs, bank executives better be prepared this earnings season for probing questions about in-branch sales practices and how they are compensating front-line employees.
It is premature to say whether criticism of cross-selling and calls to break up the big banks will lead to action, but there is one area where a spinoff could actually be in the banks' interest.
Wells Fargo Chief Executive John Stumpf may get a third grilling by lawmakers over the fake account scandal that continues to embroil the San Francisco bank.
Is being customer-centric a goal at your bank? You’ll need to master these five practices to align employee behavior with your desire to improve the customer experience.
The phony-account scandal at Wells Fargo illustrates how sales quotas can incent bad behavior. Is your bank effectively mitigating the risk of 'managing to metrics'? Or could it be in danger of becoming a 'cargo cult'?
The company, which has closed a fifth of its branches in recent years, hopes underbanked clients will boost traffic at its remaining locations. TCF Financial in Minnesota has launched a set of products targeting low-income customers.
TD Bank announced Thursday that is doing away with the Penny Arcade coin-counting machines that are stationed in more than 1,000 of its branches along the East Coast.
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.
Cross-selling abuses are not systemic and honest bankers are still important to society, the head of the Minneapolis bank said in an apparent reference to the scandal at Wells Fargo.
Strong growth in deposits and mobile users at Bank of America, together with questions tied to the phony account scandal at Wells Fargo, had B of A executives addressing whether their bank and others would be better off than ever by scaling back branches.
JPMorgan posted strong gains in consumer deposits and mobile users, and other big banks are expected to do the same. It could be a sign that megabanks are indeed stealing market share from regional and community banks.
The focus of banks' sales practices should be less about unit-based incentives, and more about developing a full relationship with customers and doing what's in their best interest.
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.
The same incentives structure that encouraged bad behavior at the bank can be blamed for ethical mishaps in other industries as well as the government.
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.".
Under pressure from regulators and investors, banks that tout their sales cultures may have no choice but to follow Wells' lead and stop rewarding branch employees for hitting sales targets.
The $222 billion-asset company has not yet publicly stated the number of branches or markets to be affected, but it "would be closing and consolidating some branches in early December," BB&T spokesman David White on Monday.
Years of branch closures and job cuts are paying off for banks in the form of much-improved efficiency ratios. But with low interest rates still crimping profits, banks remain under pressure to continue reducing expenses.
Under pressure from regulators and consumer advocates, brick-and-mortar banks are now offering overdraft-free accounts. But online-only and community banks still have them beat as the type and number of fees associated with big-bank checking have multiplied.
The regional bank has consolidated all of its digital operations under a single leader. Find out what he thinks about customer expectations, bots, fintechs and the coming convergence of digital banking.
The combination of smarter consumers and likely CFPB action have, oddly enough, pushed banks, especially large ones, to raise overdraft fees in recent months.
The bank, which operates in 12 states, is bringing customers in the door even as it cuts its retail square footage by half. The offer of a financial "checkup" that tens of thousands of people have accepted.
Longtime CEO Richard Kovacevich retired from Wells Fargo almost a decade ago, but understanding the scandal that has engulfed the bank requires a close look at the cross-selling mindset that he left for his successors. It was a culture in which the sales often justified the means.
Pretty rare, it turns out: Less than a third of executives surveyed by SourceMedia Research said their institutions set formal cross-selling targets for staff. And of those with cross-sale incentive programs, nearly half are reconsidering.
In her first major presentation as Wells Fargo's head of retail banking, Mary Mack took on the doubters, making the case for why she is the best fit to lead the embattled retail unit. She laid out plans to revamp compensation and internal culture.
CEO Tim Sloan said senior executives made a series of mistakes in response to the phony account scandal, including placing too much of the blame on branch employees.
CEO Tim Sloan said senior executives made a series of mistakes in response to the phony account scandal, including placing too much of the blame on branch employees.
JPMorgan Chase is conducting a "deep dive" investigation into its cross-selling practices, in light of the fallout from the phony account scandal at Wells Fargo.
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