Richard's Rapid Fire - December 16, 2016

December 16, 2016

Out with the Old, In with the New

President-elect Donald Trump continues to fill his cabinet with the selection of former WWE CEO Linda McMahon as the head of the Small Business Administration, CKE restaurants CEO Andrew Puzder as the Labor Secretary, and Exxon Mobile CEO Rex Tillerson as Secretary of State. Contrary to popular belief, it’s not just cabinet picks who matter. Policy making is heavily influenced by agencies like the OCC, FDIC and CFPB, and President-elect Trump will appoint several key agency heads in his first term in office. As the new administration comes to power, it looks like Washington is set to undergo significant changes.


The Year Ahead: Key Dates for 2017

As President-elect Trump makes his way to the White House and the 115th Congress heats up, here are a few key dates to keep you up-to-date:

  • January 3: The House and Senate are back in session.
  • January 20: Inauguration day
  • Mid-January: President-elect Donald Trump is expected to reveal his Supreme Court nominee.
  • Late January:  Rep. Jeb Hensarling, Chairman of the House Financial Services Committee, is expected to move forward with the Choice Act 2.0.


Rates on the Rise: What’s Next for the Central Bank?

The Federal Reserve started its gift giving a couple weeks early this year. On Wednesday, citing strong economic signals, Fed Chair Janet Yellen announced an interest rate increase of a quarter percent. The central bank also adjusted its forecast for 2017, and now expects to raise rates three times in the coming year.


CBA Fact Checks the CFPB

The CFPB this week released a report criticizing colleges for not doing enough to protect students from university bank account fees. Many of the issues raised by the Bureau express concern over overdraft and out-of-network ATM fees, but fail to include facts to prove their point. CBA fact checked the Bureau and showed how banks always have collaborated with regulatory agencies on student banking and put policies in place to help students avoid such fees.


Team CBA Visits with PNC

The CBA Team visited with our members at a PNC branch in Washington, D.C. this week to learn more about how the bank is serving its customers with innovative, cutting-edge technology.

Here is what we learned:

  • Specific branches have shifted from a traditional teller to universal banker model, enabling one banker to perform a variety of services without having to consult with other lines of business;
  • Onsite ATMs are capable of communicating with customers in eight separate languages, distributing cash in denominations as low as 1 dollar and cashing checks;
  • A sophisticated, timely process for resolving customer issues is in place; and
  • PNC expects 75 percent of its branches to implement similar changes within the next five years as customer and employee satisfaction has increased.


My Visit to United Bank

I always enjoy the opportunity to meet with our membership. This week, I took a trip across the river to visit with United Bank in Washington, D.C. Good to see familiar faces in Chad Mildren, Craige Smith, and Janice Budnik, who serves on CBA’s Deposits and Payments Committee and Mid-Tier Retail Executives Forum. We discussed issues ranging from CFPB reform to interchange fees to CBA’s 2017 priorities (see last week’s Rapid Fire). Sounds like United Bank is taking full advantage of the opportunities CBA’s committees provide, and we look forward to continuing working with their team. Committee members: be ready for a few new United Bank members to join our deep dive discussions.


Cash or Card: Who is Winning the Payments War?

Is cash still king? Consumers seem to think so. According to the Federal Reserve’s Cash Product Office, roughly one-third of transactions in 2015 were completed using cash. With consumers completing 21 percent of transactions with credit cards, 27 percent with debit cards and 11 percent with electronic payments, cash is still far and away the most used method of payment. But look out, it may not hold for much longer. Since 2012, consumer cash transactions dropped nearly seven percent. Who is winning the war? You decide.


Welcoming Aboard, Marquis Software Solutions

Hailing from Plano, Texas, CBA is excited to welcome Marquis Software Solutions as CBA’s newest associate member.


Best Wishes to Jeannette Weiland of BAI

After 45 years, Jeannette Weiland will retire as executive assistant at BAI. Jeannette has always impressed me with her professionalism, capabilities and team-first mentality. I for one, as well as the CBA Team, will miss working with her, and we wish her all the best in retirement.


Three Things to Know to Be In the Know

SCOTUS: Bank fraud need not directly target banks

America may have reached a peak for credit-card rewards

OCC Disputes Payday Lenders' Claims on Bank Account Terminations



Brian Peters was named regional executive and head of the southeast by Citizens Bank. Brian previously served as an executive at SunTrust.

John Woods was named chief financial officer at Citizens Financial Group and will succeed John Fawcett in March.  John previously worked at MUFG.

Congratulations to CBA’s Dong Hong for being admitted into the Supreme Court Bar Association.

CBA is pleased to congratulate Dong Hong on his admission into the Supreme Court Bar Association. Earlier this year, Dong testified before the House Financial Services Committee on arbitration. 


Putting our kitchen skills to test, Team CBA held a cook-off to find out who is CBA's "Top Chef." As it turns out, there is a ton of talent on the team.