Pub. 11 2021-2022 Issue 5

Environmental, Social, and Governance (ESG) factors are playing an increasing role in decision-making at banks.

In its early days, Buy Now, Pay Later (BNPL) — or installment payments — started as a subset of consumers searching for more ways to budget and improve finances, but it was rapidly adopted across the board. BNPL quickly became a mainstream payment offering, and today, it is practically ubiquitous: virtually every large and midsize merchant in developed economies has considered, is in the process of launching or has already launched a BNPL solution.

To find out how bankers will confront challenges associated with pandemic-induced digital acceleration, cybersecurity, regulatory changes and more, CSI surveyed banking executives from across the nation about their strategies and priorities for 2022. The results of the annual survey are outlined in an executive report and highlight the opportunities — and risks — inherent in today’s banking environment.

As we reflect on the experience of the first 350 institutions to adopt the current expected credit losses (CECL) standard and prepare for the remaining 10,000 institutions to adopt over the coming years, it appears CECL may be achieving the results for which it was designed. While it’s difficult to distinguish the impact of CECL adoption from that of the pandemic, it appears the standard has allowed institutions to be more responsive to ongoing uncertainty than was common under the incurred loss method.

We examined recent comments from the Federal Reserve and devised a few scenarios to help our members prepare for what’s next.

Changing market conditions and renewed interest by regulators to address products and procedures perceived as harmful to consumers have recently fueled sweeping changes in some overdraft strategies. For undisclosed programs and those with fees that have steadily escalated over the years, such changes may be necessary as regulators attempt to rein in overdraft practices that run counter to their calls for transparency.

In case you haven’t noticed, cryptocurrencies are an increasingly hot topic of conversation in this country.

According to a Pew Research Center survey fielded in November, 86% of Americans said they have heard about cryptocurrencies, and 16% said they have invested in, traded or used them. Cryptocurrency use is growing particularly rapidly among younger Americans, with 31% between 18 and 29 telling Pew they have participated in crypto transactions.

When unemployment stood at 14.8% in April 2020, nobody imagined hiring would be HR’s greatest challenge just 20 months later. The sudden shift has employers seeking new ways to attract candidates and retain employees. Whether you are struggling to find top talent or enduring the Turnover Tsunami — we are all seeing the lingering effects of the pandemic through the tight labor market.

The results of the 2021 American Consumer Satisfaction Index (ACSI), a respected national survey of over 15,000 consumers, confirmed what some financial institutions have feared: A shift in consumer expectations resulting from digital banking/efficiencies taking precedence over good ol’ fashioned, friendly, face-to-face customer service. A trend accelerated by a global pandemic and more easily navigated by financial institutions with deeper pockets to invest in digital delivery. Which begs the question: how do banks, both large and small, keep pace with this trend?

I enjoy listening to Mike Rowe. In addition to his captivating narrative voice, he has a personality that comes through in how he tells a story. From the star of Dirty Jobs to the voice for Deadliest Catch and his Returning the Favor series, his voice pulls you into what is happening. It’s just fun to listen.