Pub 10. 2020-2021 Issue 5


What Did We Learn From 2020 and How Will It Help in 2021?

If asked one year ago, what would you have said would be the biggest disruption your bank would have to deal with in the coming year? Many of us would have answered with a similar list of potential challenges: Bitcoin, fintech, etc. Not one of us would have come up with a global pandemic. But here we are, 11 months into a pandemic that has changed so much of what we know and what we took for granted.

Many corners of the banking industry are concerned that low rates, slower loan origination, and excess liquidity trends are here to stay for the foreseeable future and have begun searching for loan surrogates.

CECL Can Convert Purchase Credit Impaired and Impaired Loans

Since CECL was issued by FASB, most of the attention has been paid to data needs, modeling and forecasting in adopting CECL. However, for many institutions, the conversion of Purchased Credit Impaired (PCI) to Purchase Credit Deteriorated (PCD) and adjusting Impaired Loans to one of three CECL methods is equally important. The conversion to CECL requires the following significant steps once the historical dataset has been loaded, reconciled and validated.


Tactics for Navigating Tectonic Shifts in Liquidity

This year has presented bank management teams with a multitude of issues to juggle, many of which seemingly pull in opposing directions and most of which were not firmly on the radar to start the year. Such is life in 2020. Some banks’ primary concerns stem from the fact that the industry has seen a shift in liquidity. Balance sheets are awash with deposits relative to recent periods, while securities holdings have come down relative to assets. The build-in balance sheet liquidity has come in the form of cash, with an unusually high 7.6% of assets held in cash and equivalents as of June 30.


How to Market and Grow Your Bank Online: Five Essential Steps to Go Digital

The past several months have proven to create a lasting change in our banking ecosystem. This new normal’s immense pressure has forced financial institutions to adapt quickly to changing ecosystems, evolving customer needs and shifting regulatory frameworks. Fortunately, the demand for rapid change also presents an exciting opportunity for bank marketers to leverage digital power to drive their bank growth forward.


Trying to Market in a Pandemic? See What the Experts Say

What budget is the first to get slashed in an economic downturn? As we all know, it’s marketing. As a former ad agency guy, I have lived through many a downturn. We always knew that we were the first to lose our jobs when times started to get tough. And, when times began to improve, we were always the last to return to work. There’s an old agency metaphor for spending money in a downturn. We said it was “like shooting at ducks that aren’t there.” Well, right now, a lot of banks are looking to save their No. 2 Steel for another day.


BSA/AML Compliance Strategies in a COVID-19 Environment

The formal study of risk management has been around since World War II and involves learning how to identify, assess and manage financial risks for an organization. It has long been associated with market insurance, protections from accidents and use of derivatives. It evolved into contingency planning, analyzing various risk prevention activities and portfolio management. Operational and liquidity risks emerged as a formalized concept in the 1990s as financial institutions intensified their market risk and credit risk management activities. Risk management has become a corporate affair — it is a major player in an institution’s management and monitoring policy decisions. The concept of risk began to cover pure risk management, technological risk management models and operational risk. And as the identification of new risks emerged, so did an expanded concept of operational risk.