Richard's Rapid Fire - November 2, 2018

Day After Election Call: Join us for a CBA Members-Only call on Wednesday, November 7at 3:00 p.m. ET to discuss the 2018 Midterm Election results and impact on the retail banking industry. Stay tuned for details!

 

Cajun Thoughts: For those of you who have been in a political race, you know the urgency of a 24 hour period, the smell of October and the distinct color of the sunset. Yes, I love elections! Many of you know I once ran political campaigns and am a fan of the election process - warts and all. Much like banks’ quarterly reports and shareholder letters, I read tons of polling information…I then make my own conclusions as to the state of the race. Most states are pretty predictable, with only a few providing drama. This year, the Florida Senate race outcome is the toughest to predict. I will be up until the wee hours watching the results... Email me. Handy guide to election night available here. Remember: Election outcomes play a huge role in the banking sector. 

 
 
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CBA Internal Audit In-Person Committee Meeting: This week, CBA held another in-person committee meeting: Internal Audit led by Chair Janine Pappas of TIAA Bank and Vice ChairJeremy Harlow of American Express! We kicked off this morning with an around the horn discussion and debrief of 2018 efforts as we prepare for 2019 planning. Following reflection,Dominique Henriques, Peter Brady, Jim Tarantino, Rick Shriner and Mary Goldsmith of committee sponsor RSM International presented to the committee on all things related to improving outcomes through the use of data. The committee also heard from Associate Director, Division of Banking Supervision & Regulation Kevin Bertsch and Associate Director, Division of Consumer & Community Affairs Carol Evans with the Federal Reserve Board.

 

And, of course, members continued planning the internal audit forum session for CBA LIVE 2019: The Currency of Now …Register today here !

 

Fed Issues New Bank Regulatory Proposals for Comment: On Wednesday, the Federal Reserve Board released two proposals, creating a tiered regulatory structure consistent with S. 2155, for comments. One proposal was done jointly with the OCC and FDIC. Comments for both are due January 22, 2019.

 

More can be done, but the Fed took a step toward making regulations more aligned with the risks posed by activities instead of basing everything on an arbitrary number pulled from a hat. This is something CBA has discussed at great length with Fed Chairman Powell. All banks, regardless of asset size, play an important role in providing capital and fostering economic growth across the country. The sensible tailoring of regulations based on risk should remain a priority so banks can continue fulfilling that mission.

 

Copies of the Fed’s proposals are available here .

 

CRA ANPR Deadline Nov. 19: Comment letters are due November 19 for theOCC's Community Reinvestment Act ANPR. Modernizing this law - first passed four-decades ago well before digital banking, mobile phones and the internet - is a top priority for us. CBA's own Steve Zeisel has the pen on our letter. He has been working closely with our Board of Directors and the more than 50 members on our Community Reinvestment Committee in crafting it. He also spoke with American Banker about the need to modernize CRA here . 

 

Chairman McWilliams Understands the Unbanked: FDIC Chairman Jelena McWilliamsshares her story of immigrating to the U.S. at age 18 and her firsthand experience of what it means to be unbanked in an American Banker op-ed . Mobile banking services appeal to younger and minority consumers, who are generally more likely to be unbanked or underbanked, because they provide ways to stay up-to-date with bills and create a more reliable snapshot of their financial situation.

 

Speaking of Unbanked & Underbanked…CBA member-banks continue to develop and launch impactful programs to support underbanked and unbanked consumers. The 2018 Joe Belew Award was presented to the CBA member-bank applicant with the most innovative and impactful program serving underbanked and unbanked consumers, highlighting its “Beyond the Bank” efforts in the community. The award was presented to Co-Winners from PNC andDiscover. Read more about the underbanked and unbanked consumer programs here !

 
INDUSTRY NEWS

 

Ellen Koebler Named Chief Risk Officer: Consumer banking executive and CBA Board Member Ellen Koebler has been named the new Chief Risk Officer at SunTrust Bank! As of January 1, 2019, Ellen will assume CRO duties and oversee credit, market, operational, compliance and technology risk, as well as risk review assurance function, portfolio risk analytics and modeling for the $211 billion-asset bank. Congratulations!

 

David Tyrie to Lead BofA’s Digital Banking: On Tuesday, Bank of America named CBA Board Member and Consumer Products Leader David Tyrie as Head of Advanced Solutions & Digital Banking. While a large component of the new position will be overseeing BofA’s ‘Erica’product, an AI digital voice assistant for bank transactions, David will also continue work on reward programs and financial center/ATM planning.

 

This leadership transition comes at a critical time in BofA’s technological innovation, as well as the digital transformation in the industry at large.

 

Check out the most recent episode of CBA’s Suite 550 Podcast : Hear Josh Winstead, the new chair of CBA’s Digital Channels Committee and TIAA Bank’s SVP - Director of Digital Strategy and Operations, and Tim Ruhe, Vice President of Real-Time Payments for Fiserv, discuss what consumers are looking for in digital banking platforms, digital advancements and how banks are speeding up payment processing. Josh and Tim are joined by CBA’s Associate General Counsel David Pommerehn.

 

Fifth Third Bank Ups Investment in Chicago: Through 2020, Fifth Third Bancorp will increase investment by $2 Billion in the Chicago metro area, where it plans to “expand significantly.” The regional team has worked toward improving neighborhoods and schools for many years – including the $2.1 Billion provided as part of the bank’s original commitment to investing $3.6 Billion between 2016 and 2020. Fifth Third’s efforts demonstrate the strong passion for driving positive change and development! Full article here .

 

Citizens to Build New Digital Platform: Banks are upping their game as customer expectations continue to be shaped by non-banking products and service providers. CEO Bruce Van Saun of Citizens Financial Group announced the institution’s plan to develop a new mobile and online platform in an effort to retain and attract customers in an increasingly competitive market.

 

Following suit of many other banks, Citizens formed partnerships with fintech companies and also hired 30 digital analysts as well as programmers to launch the new platform in-house. Every sector of the economy is undergoing a digital transformation, and banking is no different! Learn more here .

 
2019 NEW COMMITTEE CHAIR OF THE WEEK
 

Kevin Condon, CBA Deposits & Payments Committee: The CBA New Committee Chair of the Week comes from the Deposits & Payments Committee – Kevin Condon with Bank of America. As Small Business Products & Rewards Senior Vice President, Kevin is responsible for Rewards Programs across all products for Consumer & Small Business Banking, as well as product management for Small Business & Wealth Management Credit Card, Small Business & Wealth Management Deposits and Small Business loans.

 

Kevin is no stranger to deposits and payments, having previously served as Vice Chairman of the committee. For eight years, Kevin worked at LaSalle Bank, a legacy Bank of Americacompany in Corporate Development prior to joining Bank of America’s Deposits team in 2008. He has served in multiple product management roles across all consumer deposit products.

 

Born and raised in Ontario, Canada, Kevin now lives in Chicago, is a big runner and huge hockey fan. When he’s not with Bank of America or the CBA Team, Kevin teaches marketing toLake Forest Graduate School of Management MBA students.

 

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LAGNIAPPE

 

Happy Halloween from CBA: We celebrated Halloween with CBA’s own Associate General Counsel Dave Pommerehn (as portrayed by CBA’s Regulatory Counsel Stephen Congdon)…You know what they say, “Imitation is the sincerest form of flattery.” Talk about spooky.

 
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Congratulations to Janet Pike & Family: CBA Executive Assistant Janet Pike welcomed her first grandson, Baby Boy Poulson, into the world on Wednesday morning. We can’t wait to meet the newest member of the CBA family! Congratulations to Janet, her daughter Kelly and family!

 

Remembering Terry Laughlin: Bank of America’s Wealth Management Chief Terry Laughlin passed this week. The CBA Team extends our sincerest condolences to the Bank of America family as well as Terry’s loved ones during this difficult time.

 
STATE OF THE WEEK
 
CBA State of the Week: Our sixth State of the Week is OKLAHOMA, where our banks servemore than 30% of all Oklahomans! CBA Members in Oklahoma hold $28 Billion in total assets, employ 13,000 people, provide $600 million in small business loans and more than half a million customers! Oklahoma is also home to CBA Member BancFirst HQ and former CBA Board Chairman Jim Daniel. Stay tuned for next week’s featured state and check outCBA state by state numbers here!
 
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