How to Build a Bank Website For AI Agents
At present, we track 150+ AI agent platforms that households and business can use right now to manage banking products. While the public is currently focused on booking travel, restaurants and events, soon they will be using agents to optimize their banking. These agents can now compare different banking products, to include researching fees, and…
Managing Loan Life to Manage Bank Performance
In previous articles (here and here), we discussed how a portfolio of commercial loans with various expected average lives results in different net present value (NPV) of income and return over a ten-year period. We also identified ten variables that are responsible for extending the average expected life of a commercial loan. As we continue…
The Impact of Reciprocal Tariffs on Community Banking
“Liberation Day” brought a 10% baseline tax on all imports plus a 15% to 49% tariff rate on a defined set of nations (below). The move shook the markets, threatening to upend much of the architecture of the global economy and fueled broader trade wars. The recent uncertain shifts in trade policies, particularly increased tariffs…
Your Bank Marketing Roadmap: Transitioning from SMS to RCS
As of last month, 68% of iPhone users were running iOS 18 or higher and 92% of Android users are running their 5.0 iOS or higher. This means that thanks to recent Apple upgrades in their operating system, most phones are now capable of receiving Rich Communication Services (RCS) messages in addition to traditional SMS….
6 Steps To Be a Better Trusted Advisor During This Trade War
There have been few times in modern memory when small businesses and middle market companies faced so much uncertainty in the market. With recent DOGE government spending cuts, escalating trade tensions, immigration reform, and the implementation of tariffs, U.S. businesses find themselves navigating complex economic waters. This week, for example, is a critical time to…
Increasing Customer Cumulative Lifetime Value Through Lending
In a previous article (HERE), we discussed how a portfolio of commercial loans with various expected average lives resulted in different net present value (NPV) of income over a ten-year period. Our analysis shows that an average community bank can expect $9.7mm NPV of income (about 1% ROA) on a $100mm loan portfolio when the…
Banking Leadership – How to Be The Banker That Everyone Wants to Work For
With 80+ acquisitions that make up our Bank, we have a strong collection of leaders that we have assimilated. These leaders have risen to the top of their previous organization and proven their value to the market by having a successful sale of their bank thereby quantifying the definitive value creation. They have proven to…
Why Expected Average Loan Life Matters to Value
Expected average loan life measures the amount of time that principal is outstanding on a loan. This average life is driven by many factors, including amortization period, economic circumstances, nature of the loan and the expectations of the borrower, and most importantly, by contractual term and prepayment provisions. The biggest surprise for many lenders is…
Solving Banking Problems with the 5S Methodology – Part 2
The “5S Framework” is a methodology for solving banking problems that banks can apply to determine the best strategic path forward. We outlined the background and the first couple of steps of the framework in Part 1 (Here). In this article, we cover the remaining three “Ss” of “Solve,” “Stress,” and “Sell” while looking at…
Should Your Bank Adopt a Loan Hedging Program?
We are staunch advocates that banks should avoid risks that they do not get compensated for. One such risk that banks take without compensation (or revenue) is on-balance sheet, fixed-rate loans. With the current flat or slightly inverted yield curve, plus the current volatility of the market, borrowers have a pricing advantage to lock in…
Use This 5S Framework for Solving Strategic Challenges in Banking – Part I
Banks face a big set of challenges ahead. To gain a competitive advantage, having an effective and efficient systematic approach that is repeatable and can be part of your bank’s culture would be helpful. In this article, we provide a five-step AI-enabled process that will help your bank with solving strategic challenges. 5S Framework Overview…
You Need to Understand These Reasons for Bank Consolidation
By 1985, the banking industry had radically changed. Consolidation among financial institutions started to occur at a pace never seen before, a pace that continues to this day. Understanding the drivers of banking consolidation is imperative when managing bank performance. In this article, we break down the lessons from this long-term trend. In 1985, there…