January 2017

10 Things Good Bank CEOs Want From Their Board

Bank Board Governance

Recently, we got together with four high-powered bank CEOs, Jill Castilla from Citizens of Edmond, Ken Burgess from First Capital Bank of Texas, Jeff Schmid from Mutual Omaha Bank, and our own John Corbett from CenterState Bank to ask what do they want out of their board members. What follows are their best ideas of the ten things bank directors can keep in mind to add value to the governance process:

 

Great Bank Marketing

Make Banking Fun Again

This is an easy one from HSBC that prints ATM receipt origami on the back of their receipts to keep things fun and lively. Customers can collect them all, kill time while standing in line at Starbucks or pass them to their kids. Banks can create their own community specific origami and print them on the back of their own receipts. Too much work? - At least a branch standalone marketing piece or email showing all the creative things that you can do with your ATM receipts?  How about a similar marketing piece on what to do with remote deposited checks?

Wells Fargo And Two Of The Most Successful Compensation Plans

Bank Compensation Plans

Since 1816, with the opening of the Second Bank of the United States, bankers have struggled with compensation plans. The new Wells Fargo structure, rolled out this month, is somewhere in the middle of two wildly successful plans. The question is, what can community bankers learn from these plans and how can they put them into action? Our last series on compensation (HERE), gave bankers ideas on how best to compensate lenders.

Why Millennials Are Your Canaries

Misunderstanding Millennials

Baby Boomer Bank Executive: “It’s hard to understand the Millennial mind. Like, why don’t you want to buy a house?” CenterState Millennial AVP: “If I had a dollar for every time someone over 40 complained about the Millennial mind I would have enough money to buy a house in a market that you overinflated.” Point Millennial. At CenterState, like most banks, we struggle to understand the Millennial mind as there are some tangible differences in motivation. Consider some examples below.

 

The Current Reputation Of A Banker

The Current Reputation of A Banker

The latest Gallup Poll result came out this month and show bankers still in the middle of the pack of professionals among the public's perception of honesty and ethics. Unfortunately, we dropped a point in 2016. We are sure community bankers would have ranked higher if it weren't for the antics of some of our larger brethren, but this data is mildly interesting.  

 

Here is the latest data:

 

Copy This Commercial Loan Tactic To Increase Profitability

Loan Modifications

Commercial loan competition is intense and we recently witnessed a long-term customer of a community bank refinance with a competitor bank for just a 15bps lower loan rate, zero closing costs and no loan fees.  This is an extreme example, but the point is germane – competition is intense and community banks need to be creative to manage profitability.  We would like to share one particular tactic that we use at CenterState Bank to increase commercial loan profitability.  We are certain that your bank can benefit from this same approach and poss

Messaging Apps That Banks Will Be Using

Bank Messaging Apps

Last week both YouTube and Facebook rolled out updates to their respective messenger apps in hopes of better competing with iMessenger, Snapchat, WhatsApp, Viber, and others. We use or have tested all these, and we believe Facebook Messenger holds the most promise for a standardized and efficient platform for banks to leverage in order to increase communication with both their retail AND their commercial customers.