Our blog is dedicated to sharing our thoughts and expertise about the banking industry and how you can experience quantifiable results for your financial institution. We invite you to hear the perspectives from our banking professionals through our posts.
If yours is like a lot of businesses this year, the end of 2024 has already brought the unpleasant news that employer healthcare costs are rising again by anywhere from 5 to 10% on average. If your financial institution doesn’t find ways to offset this increase, you may be heading into 2025 already behind your […]
What does a high performing financial institution have in common with Rocky Balboa in Rocky IV? More than you’d think at first glance! In the film, Rocky confronts Ivan Drago, who prepares for the match using high-tech equipment, a team of experts monitoring his every movement, and regular doses of steroids. Rocky, however, focuses on […]
Many financial institutions provide ATMs at each branch location because “that’s the way it’s always been done.” However, banking has rapidly evolved since the 1960s when ATMs first appeared to give cardholders access to cash when the financial institution was closed. Has your institution recently analyzed whether ATMs are a profitable endeavor or more of […]
As we wrote in the article How Community Financial Institutions Compete in a Digital Age, deposit growth is not what it used to be. Along with shifts in U.S. population growth and demographics, excess liquidity in deposits created by COVID stimulus plans has quickly eroded. The “higher for longer” rate environment is stressing cost of […]
While we have never been in another economic cycle exactly like this one, the fundamentals of lending and borrowing for financial institutions remain the same. As always, FIs are interested in how to prepare for and respond to what’s coming while protecting their interests and jumping on emerging opportunities to increase revenue and profits. In […]
As of April 2023, the yield curve was inverted, pointing to a possible recession. Rates have dramatically increased, slowing loan demand, and inflation stubbornly hangs on indicating more rate increases could be on the way in the short-term. Customer demand has shifted the conversation from rate floors to rate ceilings. In addition, excess liquidity that resulted from the pandemic is now falling. This, combined with depositor demand for higher yields, is beginning to increase deposit costs. In this blog, PRI consultant Shawn King discusses how to maximize profitability and ROE in an increasing rate environment.
During the pandemic, many FIs have been forced into a reactionary mode of addressing deferments, PPP loans, renewals, modifications, portfolio management and some new loans. All these issues have added to the dreaded “credit churn.” When the FI touches credit issues such as new analysis, DSC calculations or credit memos falling under the same borrower […]
Do you need a PIN network? And does it really matter which one you select? Yes! You do, in fact, need two PIN networks, and it does matter which you select … if you are interested in maximizing profits. All PIN networks have the same basic function of processing transactions with or without a PIN […]
A recent poll showed that two out of three economists are now projecting some type of recession or economic downturn in 2021. Although we know it’s going to come, nobody knows when. In the meantime, our clients are asking how they can best minimize the impact of a downturn to their loan portfolios. They’re asking, […]
