Chris Nichols

5 Things Your Bank Should Be Doing Now to Not Get Acquired Later

Improving bank performance

It was only two years ago when we were in the golden age of banking. The ten-year treasury was above 3%, loan growth was strong, funding cost was low, and credit quality was near its high - if not at record highs for some banks. Fast forward today, and you have a 0.67% ten-year, a large chunk of your balance sheet in forbearance, deteriorating credit quality, and margins near record lows.  There are some obvious things that you should be doing to ensure you can survive in the long run.

Lean Six Sigma and PPP Forgiveness SBA Submission Improvements

PPP Process Improvement

As any lean six sigma practitioner will tell you, banks need to continuously define problems, measure against benchmarks, analyze, improve, and control their PPP Forgiveness application process. With a couple of thousand applications processed over the past five weeks, we are improving our process daily. In this article, we focus on the back end of our forgiveness manufacturing process and discuss SBA rejection rates. Getting an application rejected by the SBA adds 15 to 30 minutes of time to each application as bankers need to go back and solve defects.

Choosing a Bank Hedge Provider

The economic consequences of Covid-19 have altered average credit quality and created a flat and shallow yield curve.  Community banks are working diligently to support their local communities and survive in these challenging times.  One tool that many community banks have utilized in this business environment is a loan-level hedging product.

Here is the Biggest Problem Banks Face with PPP Forgiveness Processing

PPP Forgiveness Processing

There is no surprise that you can only do so much when it comes to educating PPP borrowers. We have produced a comprehensive website, executed a detailed email campaign, conducted a series of webinars, produced videos, have a Getting Started Guide, and distributed a checklist - still, borrowers remain deficient in completing their application accurately. In this article, we explain this educational black hole, provide the latest data, and detail not only what it means for banks looking to process applications more efficiently but ways to solve the problem.

What The Election Means For Credit

The Impact of the Election on Credit

It is around this time before a presidential election that bankers start to ponder how the results of the election will affect credit, interest rates, and the general business environment.  The stock and the acceptable answer is that presidents get too much credit when the economy does well and too much blame when it slumps. The complex and intertwined US capitalist economy goes through boom-and-bust cycles independent of any president’s actions.

Here is a New Idea to Blow Up Your Bank’s Strategic Planning

Bank Strategic Planning

If you are like 90% if banks out there, chances are your strategic planning process is not all that effective. Chances are your strategic planning process is a good budgeting exercise, but a poor driver of strategy. It likely your current strategic plan contains something about growth, geographical expansion, and digital transformation. You could exchange plans with another bank, and neither sets of shareholders would know the difference.

Early Data on PPP Forgiveness Processing

Improving the PPP Forgiveness Process

Without approving the HEALS or HERO Acts, Congress gave little reason for banks to delay their Paycheck Protection Program (PPP) Forgiveness program. As such, many banks, like ourselves, launched on the 10th. With a couple of weeks of testing and processing, we thought it might be helpful to give an update that can hopefully inform your process. So far, 12,000 PPP Forgiveness applications have been submitted by 1,000 lenders (out of the 5,500 who participated).

How To Project Credit Quality In the Age of Covid-19

The Pandemic's Impact on Credit RIsk

Community banks face a new and unfamiliar underwriting risk – an epidemiological disruption that has limited visibility and short history that affects both free cash flow and collateral values.  In addition to debt yield, debt service coverage ratio, and property values, banks now need to understand how all of these credit parameters are going to change because of Covid-19.

When Will Your Bank Start Using Chat and Chatbots?

Live Chat and Chatbots in Banking

It is not a question of “if” it is only a question of “when” you will start deploying chat and chat automation at your bank. It should be on your radar screen for several reasons, the first of which is that it will soon be the fastest growing and the most preferred communication channel among your customers. That trend got a boost when Apple announced last week the production release of its Business Chat product.

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