Proverbs of a Bank Product Manager

One deficiency at most banks is that while there is a business line owner, there is rarely a product manager (PM) of a particular product such as commercial loans, demand deposits, treasury management, or even digital banking. As a result, most banks roll out a new product and then move on. Neglected, products quickly become…

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One of the More Successful Commercial Bankers We Know Does These 3 Things

We recently interviewed a top commercial loan producer at a regional bank who explained how he uses three common principles to beat out his competition. We want to share his principles, philosophies, and techniques in hopes that it might serve as an aid for some of your new relationship managers and a reminder for some…

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The Elements of a Bank Payment Strategy

Bank payments are a mess. Every payment method is a different channel. Worse yet, we confuse our customers with different forms, procedures, and jargon. It has been 50 years and we still expect our customers to know the difference between a wire and an ACH. If we can’t talk to customers about it right, we…

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How Your Bank Can Compete Against Fannie and Freddie

Both the Federal National Mortgage Association (Fannie) and the Federal Home Loan Mortgage Corporation (Freddie) have aggressive multifamily lending programs and comprise the bulk of the market. Freddie’s total multifamily finance activity in Q1/21 was $14B, and Fannie Mae’s was $21.5B.  Some bankers complain that taxpayers’ dollars are creating an unfair playing field for financing…

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Using Decision Trees in Banking (And Why Innovation Makes Economic Sense)

If you are looking to make best-in-class decisions, it pays to have a variety of best-in-class tools at your disposal. Oftentimes, a reason why banks don’t innovate more is that they lack the tools and experience to properly understand the risk and the return. Without a way to quantify the risk, stagnation occurs. As banks…

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Consider This Strategy Before You Turn Down Your Next Low Margin Loan

Our previous publications discussed current banking industry dynamics for loan pricing, how community banks are responding, and some winning strategies for community bankers.  We contend that excess liquidity and tepid loan demand are the main culprits in driving community bank net interest margin (NIM) to the lowest level in recent history.  With loan-to-deposit ratios dropping…

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Why Your Bank Should Write A Press Release Before Starting A Project

If you are a traditional company in America, you produce a product, get some beta customers and then write a press release to announce the product or service to the world. You create the narrative in your press release to fit reality. However logical this seems, it might be the wrong way to do it….

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Managing The Earnings and Margin Trade Off

Many community banks are struggling with excess deposits and weak loan demand.  The common question posed to us is, “should management focus on loan growth by accepting lower margins or wait for margins to recover?”  This blog will address current banking industry dynamics, how banks are responding and what we see as some winning strategies….

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The Changing Distribution of Bank Product Demand

In business and banking schools an often-taught principle is that the demand for banking products is normally distributed. A bank would set its product and price, some people wouldn’t care, others would care a lot and the bulk in the middle is where a bank would focus its sales and marketing resources to convince them…

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Creating A Disaster Transactional Account Set

For banks looking to help their communities plus expand their relationship with their local county municipality, the Disaster Account Set (DAS) is an underutilized product with a growing need. For any given disaster, be it a hurricane, earthquake, tornado, or other event that displaces a material section of the population, there is an outpouring of…

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The Future For Banks on Returning To Work

After more than 12 months working from home during the pandemic, many banks have yet to formulate a consistent plan on returning to work. While some banks are returning to their pre-Covid-19 state, others take the view that the future of work isn’t so important as the future of living. By taking advantage of this…

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How To Increase Loan Revenue by 20% While Decreasing Interest Rate Risk by 80%

At SouthState Bank, we are using a tested strategy to increase loan revenue by 20% and decrease interest rate risk by 80%.  We are achieving this result on our better credit quality commercial loans without any gimmicks or confusion to the borrower.  We have developed a technique and a loan structure to assist bankers who:…

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