White Papers
December 17, 2015The Federal Reserve has just raised its benchmark Fed Funds rate by 25 bp — after seven long years at rock bottom. Overall, banks are breathing a huge sigh of relief, with the expectation of higher loan yields and revenue. But deposit gathering bankers must now face the reality of how to set deposit rates in response to rising interest rates — and in light of significant changes in regulation,...
December 7, 2015The complexities of the current regulatory environment undoubtedly pose significant challenges for financial institutions, as regulators continue to expect management to demonstrate robust oversight, compliance and risk management standards. Regulatory mandates, such as the Federal Reserve Board's Enhanced Prudential Standards Rule and the Office of the Comptroller of the Currency's Heightened...
November 6, 2015Small businesses have always had a harder time securing financing than their larger brethren, but these challenges have grown even worse in recent years.As economic conditions have improved, fledgling firms have been seeking additional capital to invest and expand. While demand for credit from this sector is growing, many banks are reluctant to provide them the financing they need. Regulations...
August 19, 2015Following a period of declining demand for consumer loans triggered by the 2007 mortgage-backed securities collapse, consumers are borrowing again. In 2014, total outstanding consumer loans grew five percent to $1.4 trillion led by auto loans, credit cards and home equity lines of credit.1 U.S. consumer credit rose at a seasonally adjusted annual rate of 5.6 percent through February 2015. This is...
July 27, 2015Following years of retrenchment, the home equity line of credit is finally showing signs of life. Line origination is expected to approach $80 billion among all U.S. lenders this year, nearly double the 2012 nadir. And balance growth is becoming more widespread as institutions shake off the recession detritus of non-performing loans. This does not mark a return to business as usual, however...
February 24, 2015Mass Affluents are growing in their importance to financial institutions. They’ve spent a lifetime working to build successful careers. Now that they’re reaching the age of retirement, they have money, and in some cases — significant amounts of investable assets. For financial institutions, this presents a tremendous opportunity. Mass Affluents generate 60-70 percent of retail banks’ total...
Community Reinvestment, Credit Card Disclosures, Fair & Responsible Banking, Small Business Lending, Small Dollar Lending, Student LendingJanuary 22, 2015Introduction Loan sales can significantly benefit banks and other financial institutions, whether these organizations want to bolster their income by buying portfolios or free themselves up to issue more credit by selling them. However, sellers will need to be familiar with the current compliance environment, which is intricate and constantly evolving. Sales that fail to address and successfully...
December 10, 2014Introduction Fraudsters continue to find increasingly sophisticated means to perpetrate crimes despite advances in technology and stricter regulations designed to reduce fraudulent behavior. Notably, the advent of digital technology and the anonymity it provides has contributed to the rise of the creation of fictitious credentials known as synthetic identities. Synthetic identity fraud is a...
August 5, 2014After years of hearing that the era of the “mobile wallet” has arrived, bankers have become weary of reports that are more hype than substance. While it’s true that an increasing number of consumers are using mobile devices to pay bills, each other and move money among their own accounts, mobile payments to merchants and retailers are still in the development stage due to market fragmentation,...
June 18, 2014With an unemployment rate of more than 13 percent and an average salary of $39,700 , financial institutions might be inclined to dismiss Gen Y, the demographic group also known as “Millennials.” They may be currently struggling, but Gen Y is still very optimistic about their financial future. Nearly 90% of those 18-34 believe they have enough money now or expect that they will in the future.You...
