South State Correspondent

JANUARY 22, 2025

The gen AI consultant can talk intelligently about leadership, bank performance, financial structuring, marketing, lending, legal, compliance, and deposits. Nuanced questions about human capital or culture tend to be nuanced and difficult for Gen AI to opine accurately on. The right questions are also important.

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How To Data Training Tools 195

South State Correspondent

FEBRUARY 22, 2024

Banks consistently produce under their cost of capital. However, for the average bank, their cost of capital is between 9% and 14% depending on the bank’s equity liquidity with an average of 12.5%. As an industry, we misallocate capital. You can’t develop lending expertise overnight. Why is that?

How To 195

How To Capital Strategy Lending 195

Abrigo

MARCH 31, 2025

It also means removing ritualistic contentsuch as unnecessary analysis of debt service coverage for a working capital linewhen it doesnt directly relate to how the loan will be repaid. But they shouldnt be an exercise in verbosity or regulatory appeasement. Kirby suggested focusing on what truly affects repayment and credit risk.

Analysis 195

Analysis Risk Management Management Data 195

Gonzobanker

MAY 31, 2019

Financial institutions that want to play in the small business lending sandbox need to bring their digital toys. But how can community banks successfully compete with big banks and fintechs that are spending billions on their digital lending capabilities? Source: DeBanked ) Square Capital lent about $1.6 Source: DeBanked ).

Lending 121

Lending Community Bank Community Data 121

South State Correspondent

MAY 23, 2023

Lending is getting riskier. This data is critical for pricing, capital allocation, and marketing. As can be seen, the consumer is starting to feel the credit shock first while commercial lending is still performing. Minnesota, North Dakota, and Iowa were the least risky states to lend into. This quarter, it is 2.58%.

Trends 195

Trends Minnesota North Dakota Arizona 195

Abrigo

MARCH 21, 2024

Enterprise value, or the fair value of the acquired credit union, becomes the imputed “purchase price” of the transaction and acts as the baseline in the purchase price allocation exercise for goodwill determination. Enterprise value considers more than just the book value of a credit union's assets and liabilities.

Lending 221

Lending Analysis Exercises Risk Management 221

Abrigo

OCTOBER 10, 2023

Are there high capital or technological costs? View specific examples of industry analysis in practice in this webinar Contact experts Watch Now Conclusion The long-term benefits of incorporating industry analysis Industry analysis is not an academic exercise. Barriers to entry: Is this an industry that is easy to get in or out of?

Analysis 195

Analysis Industry Risk Management Lending 195

Abrigo

MARCH 17, 2022

Takeaway 3 Using stress testing scenarios helps banks and credit unions determine whether estimated loss rates will push projected capital levels below regulatory thresholds. Banks and credit unions must be able to adjust when necessary to ensure viability of the institution and the ability to supply capital to their local economy.

Capital 195

Capital Regulation Risk Management Community 195

PYMNTS

DECEMBER 17, 2018

have already used an alternative lending platform, particularly among younger entrepreneurs. “It can be a hugely time-consuming exercise researching all the traditional and alternative financing solutions on the market.” firm that bridges companies with a range sources to obtain loans, equity financing or grants.

Policies 195

Policies Data Lending Exercises 195

Abrigo

SEPTEMBER 5, 2023

unsecured lending is bad rather than unsecured lending should only be extended to high pass risk rated credit). The following is an example of how I would address the structural exception of non-recourse lending. a significant capital injection into the borrower, or other collateral such as liquid assets).

Policies 195

Policies Lending Risk Management Examples 195

South State Correspondent

MARCH 14, 2024

Strategic Horizon and Capital As mentioned, the problem that bank’s often run into when it comes to strategic planning is their time horizon is too short. The fundamental problem is a bank’s implied average life of capital is long, some 18+ years, but their strategic horizon is too short – likely under three years.

Innovation 195

Innovation Strategy Capital Comparison 195

Abrigo

JANUARY 12, 2016

With a risk rating system in place that allows for accurate and consistent ratings, portfolio managers can perform a variety of risk management exercises such as setting the reserve, stress testing, capital planning and strategic planning.

System 150

System Risk Management Management Exercises 150

Abrigo

NOVEMBER 11, 2019

ALM | 4 minute read Key Takeaways Many financial institutions view asset/liability management as a "check-the-box" regulatory exercise. An extreme focus on using ALM to manage the risk of rising rates means some FIs overlook using ALM to grow earnings and capital, putting them at risk of underperformance. Lending & Credit Risk.

Management 150

Management FDIC Community Risk Management 150

BankUnderground

JANUARY 12, 2023

There is also a risk of higher loan defaults eroding banks’ equity capital, which could lead banks to tighten lending conditions. However, this effect is small in our model given the size of banks’ capital buffers. Given this, there would be little additional benefit to raising bank capital requirements further in our setting.

Policies 137

Policies Capital Lending Exercises 137

South State Correspondent

AUGUST 21, 2022

Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. This capital ratio is used to assess the possible riskiness of a hedge provider.

How To 195

How To Community Bank Community FDIC 195

Gonzobanker

MAY 8, 2020

25% 140 banks will have capital levels that have fallen below 8%. So far, bankers have taken comfort in the soundbite that “this crisis is different” because of the strong capital levels and risk management rigor that has developed since the Great Recession. Practice the art of surgical lending.

Lending 101

Lending Analytics Analysis Capital 101

Abrigo

JULY 14, 2023

Analysis should be performed on concentrations, as a percentage of capital, in terms of: (1) Collateral type such as multifamily, retail, office, etc. (2) This exercise may reveal the need for bigger-picture data analysis. For example, your top goal for next year might be to expand your lending geographic footprint.

Strategy 195

Strategy Data Analytics Analysis 195

Abrigo

OCTOBER 9, 2019

Stress testing gives an institution a serious look into their capital and reserves, and if they possess enough of each to remain viable, should a recession hit. Both CECL and stress testing take top-down and bottom-up approaches to test the capital adequacy of a financial institution. Portfolio Risk & CECL. Learn More. Credit Risk.

Data 150

Data Exercises Software Tools 150

Jeff For Banks

AUGUST 2, 2014

Although our Tier 1 leverage ratio is greater than 10%, you criticized us for our stress scenarios contained in our capital plan. Aside from the clear lack of analytic rigor you exercised to come to this conclusion, it is important to remind you that estimating future negative events that impact our capital is guesswork.

Regulation 92

Regulation DC FDIC Analytics 92

Gonzobanker

JULY 28, 2014

Lending execs across the country were clearly dissatisfied with how manual processes and lackluster technology were used to stumble through those massive re-fi volumes. Bankers face a lot of work and challenges as they attempt to marry new lending systems with elegant, customer-friendly lending processes. Now we’re talking! .

System 102

System Lending Data US 102

Gonzobanker

FEBRUARY 29, 2024

A recent round of bank merger announcements and the marquee Capital One/Discover deal illustrate this mantra’s popularity. An exercise Cornerstone likes to conduct: Take a look at the top 20% of the bank’s headcount and review comp and bonus in descending order. Why is this important?

Tools 145

Tools Data Analytics System 145

BankUnderground

AUGUST 9, 2022

In the future, people could shop, exercise and socialise within the metaverse. This interoperable capacity has been showcased by decentralised finance (DeFi), which replicate financial services such as lending and exchange typically conducted by a centralised authority, but in a decentralised manner.

System 144

System blockchain cryptocurrency Lending 144

BankUnderground

JULY 7, 2020

The yellow and blue series display the new “global” data in nominal and real terms: these have to be constructed from a wide array of scattered archival and printed sources, and should be thought of as a DM public long-term debt series that incorporates both consolidated and unconsolidated voluntary lending across the full risk spectrum.

CA 141

CA Trends Exercises Data 141

NCR

AUGUST 17, 2017

David Blumberg, founder and managing partner of Blumberg Capital, said the research indicated a “huge opportunity for fintech companies to grow and scale as more consumers begin to recognize the benefits of fintech” A separate report from KPMG , focusing on the UK market, revealed that total investment in fintech reached $1.4

Regulation 51

Regulation Fintech Exercises Capital 51

FICO

MARCH 29, 2018

The main challenge with CECL is that it will require higher levels of capital to be kept in reserve and lead to changes in lending practices and portfolio and product management. Those who best implement CECL will have greater retained earnings and lending capital than their competition. Sound appealing?

Lending 45

Lending Exercises Capital Maine 45

CFPB Monitor

APRIL 11, 2022

A Connecticut federal district court has refused to dismiss claims filed by the CFPB against a mortgage company and three of its principals for alleged Truth in Lending Act (TILA), Mortgage Act and Practice (MAP) Rule, and Consumer Financial Protection Act (CFPA) violations.

Connecticut 78

Connecticut Company Regulation social media 78

Jeff For Banks

DECEMBER 28, 2023

If you want the head of commercial lending or retail banking to take ownership of the continuous improvement of their spreads so the bank can improve its net interest margin, you must first measure it. Some financial institutions consider strategic planning a regulatory exercise or look to do it themselves to save money.

Groups 65

Groups Capital US Community 65

CB Insights

JANUARY 29, 2018

For example, alternative lending saw consolidation in 2017 as investment to VC-backed alternative lending companies swung heavily to growth-stage companies like unicorns Kabbage , SoFi , Affirm , and GreenSky , all of which raised $100M or more in 2017. Slowdown in 2018?

Fintech 31

Fintech US America Exercises 31

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

Lex Sokolin

DECEMBER 31, 2020

Decentralized Finance, Blockchain, and CBDCs Why Peer-to-Peer models fail against oligopoly, with Lending Club shutting down p2p platform, Seedrs/Crowdcube merging, and Morgan Stanley buying Eaton Vance for $7B. the Lending Clubs) end up becoming banks and seeking the thing it looked like they would disrupt. They all (i.e.,

Fintech 52

Fintech Bitcoin blockchain Google 52

FICO

FEBRUARY 12, 2023

The business model here needs to focus on a strategy that balances lending growth while keeping risk in check. With this approach, loan pricing is not an isolated exercise. It's a strategy that requires accurate customer validation and data analysis, with an emphasis on action-effect modelling rather than hypothesis.

Digital Banking 52

Digital Banking eBook Analytics Customer Experience 52

CB Insights

OCTOBER 31, 2017

Three years later, for many, it is now rightly recognised as perhaps the most important pillar of our health and wellness, alongside exercise and diet. BTCjam, a P2P marketplace launched in 2012 to borrow and lend using bitcoin, announced the company has made “the difficult decision” to close up shop, according to multiple news sources.

Company 78

Company US San Francisco Capital 78

Jeff For Banks

FEBRUARY 26, 2011

But should a board, in exercising their fiduciary duties, perform this analysis routinely without determining to sell the FI first? Strategy execution typically lends itself to a long-term view. In its simplest form, the discount rate in the above sample should be the shareholders'' expected capital appreciation of the FIs stock.

Analysis 70

Analysis Strategy Exercises Philadelphia 70

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 72

Regulation Risk Management Management Industry 72

Gonzobanker

FEBRUARY 21, 2017

More importantly, no one is going to spend political capital to move mountains in Washington over a possible problem. The fraudulent activity of several Wells Fargo employees is a sobering reminder that governance and risk management shouldn’t simply be “check the box” exercises.

Regulation 60

Regulation Risk Management Management Industry 60