Correspondent Blog

You are likely in the process of finalizing your strategic plan. The good news is that strategy matters and your team’s time and effort in refining your strategy should pay off. The question is, how much will it pay off? That answer depends on the strategy your bank is pursuing and the underlying business model…

Our article last week (HERE) discussed the “power of three” marketing rule and how to use it for loan proposals.  The rule states that human brains make better decisions when given a small selection of appropriate options but not too many to become confused. One or two options are usually insufficient, and five or more…

While technology has always been important in banking, it has yet to drive the essential functions of banking. Up to this point, if you could speak to a human, banking was easier. In the last year, this has started to change. With the rise of data, generative AI, personalization, instant payments, embedded banking, and traditional…

We review hundreds of term sheets and proposals for commercial borrowers each month.  One successful loan proposal tactic for community banks to improve their acceptance rate is to embrace the old marketing rule of the “power of three.”  We often see banks proposing one or two options for a commercial borrower, and often, the options…

Last week, we discussed how and why commercial lenders use a bank loan proposal letter (aka commitment letters) to their advantage (HERE).  We argued that a proper strategy and a well-crafted loan proposal letter could help lenders close loans quicker, eliminate more competitors, secure better pricing, and obtain the desired credit structure. In this article,…

Money 20/20 (M2020) is the only conference in the industry where it is both possible and expected to pull off two breakfasts, two lunches, three cocktail parties, and two dinners PER DAY. It’s a whirlwind of education, deal-making, eating, and hugging. In this article, we detail our thoughts and the trends we saw last week…

Halloween is approaching, so we might as well talk about death. Checks are dying and about to die quicker, given the rise of instant payments. In the next two years, many banks will have strategic plans to phase checks out, given their cost and reduction in frequency. Checks are getting to the point where they…

After Brief Rally, Treasury Yields Head Higher Again Treasury yields are moving higher once again this morning as the Treasury’s expected announcement next week of increased auction sizes is starting to weigh on markets, and the lates PMI and new home sales offer little indication of a slowing fourth quarter economy.  Presently, the 10yr is…

Good commercial lenders use commitment letters and proposal letters to their advantage.  A proposal letter (or letter of intent) expresses interest from the lender before credit approval is obtained.  A commitment letter evidences the lender’s commitment to lend.  It is only furnished after preliminary credit approval and typically contains the following language: lender commits to…

If you want to know if your bank has an alignment problem, ask ten co-workers, ”What is your bank’s brand value proposition? If 80% or more say close to the same thing – that is fantastic, and you are likely in the top 1% of bank performance. If 60% of your co-workers say the same…

Grid-based pricing is typically used to set the applicable margin of a loan based on specific performance measures, such as credit rating or cash flow coverage.  However, grid-based pricing can also be used to increase deposit balances.  The average borrower does not calculate their cost of borrowing and return on deposits on the economic value…

Many parents have dealt with the issue of how to divide Halloween candy among siblings. It takes work. If all houses gave out the same candy, it wouldn’t be a problem. But houses give out different sweets. Further, trick-or-treaters have different preferences. Whatever the case, candy, and preferences are not all the same. As a…