Richard's Rapid Fire - May 3, 2019

(From L to R: TD Bank’s Global Head of Diversity and Inclusion Kelley CornishVigeo Alliance’s CEO and Managing Partner Cassi ChandlerIBERIABANK’s Chief Diversity Officer Monica SylvainWells Fargo’s Strategy Planning Manager Maggie Murphy Maertz.)


Suite 550 Podcast: Following a panel with CBA's Talent Management Committee at CBA LIVE, several industry leaders on diversity sat down with CBA’s SVP of Education Brenda Mechling to discuss the benefits of a diverse and inclusive workforce, how to ensure organizations are recruiting and retaining top employees and how to recognize and overcome unconscious bias.


Click here to listen now or subscribe on iTunes.

Cajun Thoughts: BIPARTISAN COMMISSION AT CFPB This week, I ran into fellow Louisianan Preston Kennedy, this year’s Independent Community Bankers of America (ICBA) chair and thanked him for continuing the push for legislation to create a bipartisan commission at the CFPB. It’s great to see large banks and community banks on the same page with this issue. When all sides contribute to the rulemaking process, it is a win for everyone …INFRASTRUCTURE BILL While the possible $2 Trillion infrastructure bill sounds great and dandy, my guess is Congress will need revenue to offset the cost. Unfortunately, the banking industry as well as many other industries will be a prime target for those revenue raisers …HANCOCK WHITNEY ACQUIRES MIDSOUTH BANK You may have seen CBA member Hancock Whitney bought Lafayette-based MidSouth Bank this week in an all-stock transaction valued at about $214 Million … HAS YOUR MANAGEMENT STYLE CHANGED IN THE LAST 5 YEARS? I was intrigued by a recent article about CEOs 50+ taking on new management habits and incentive to manage millennials … CATCHING MY EYE THIS WEEK According to a recent poll, Americans are the most positive about their personal finances since 2002, yet I saw another article reporting Bank of America’s recent surveys showing small business owners are stocking away money … STOCKS TODAY VS. ‘DOW 36,000’ I remember reading a book published in 1999 by James Glassman called Dow 36,000, which concluded the Dow Jones industrial average (DJIA) would be at 36,000 by 2002 or 2004 – it might end up being half right one day … WILL HOWLE RETIRES FROM CITI Former CBA Board Chairman Will Howle of Appalachian State fame officially began his "vacation." 





Check out highlights and key moments from CBA LIVE 2019, as we marked our centennial and 10th annual conference. More than 1,600 attendees, including 750+ senior-level bankers, joined us in Washington, D.C. for retail banking's premier event. Featuring record attendance, remarks from the industry's top banking regulators and powerhouse presenters, CBA LIVE 2019 was one for the history books.




Below are details on our time in our nation's capital, including programs, presentations and photos. Plan to join us for CBA LIVE 2020, March 23-25 in San Diego, CA!


All CBA LIVE 2019 attendees can view presentations from the conference via our online portal. Enter the username and password emailed to you. If you need help locating these details, contact us!


View our CBA LIVE 2019 Photo Albums and download your favorites for free from our Flickr page.


Experience key moments of CBA LIVE 2019 by viewing LIVE Stream recordings of all general sessions and catch our latest three podcasts.


#CBALIVE 2019 was a hot topic on social media. Check out the buzz here!




CFPB Proposes Changes to HMDA: The CFPB yesterday issued two proposals seeking information on proposed changes to the Home Mortgage Disclosure Act (HMDA). 


The first, a Notice of Proposed Rulemaking (NPRM), proposes to raise the coverage thresholds for which an institution must collect and report data about closed-end mortgage loans and open-end lines of credit. The NPRM is designed to provide relief to small institutions and credit unions and offers no meaningful relief for CBA's members. 


Specifically, the NPRM "proposes two alternatives that would permanently increase the coverage threshold from 25 to either 50 or 100 closed-end mortgage loans. For open-end lines of credit, the NPRM would extend for another two years the current temporary coverage threshold of 500 open-end lines of credit. Once that temporary extension expires, the NPRM would set the open-end threshold permanently at 200 open-end lines of credit."


The NPRM is available here.


The second, an Advance Notice of Proposed Rulemaking (ANPR), seeks information on the costs and benefits of reporting certain data points under HMDA.  In 2015, the CFPB used its discretionary authority to greatly expand the number of data points financial institutions are required to collect beyond the data collection statutorily mandated by Congress. Evaluating the burden associated with expansive data collection is long overdue.


CBA will comment on this proposal.


The ANPR is available here.


CBA Restates Support for GUIDE Act, CFPB Supervision of Nonbanks: CBA wrote Senate Banking Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) to discuss the use of proper regulatory guidance, the need for experienced bank examiners and the importance of regulatory coordination among supervisory agencies.


The letter also restates our support for the bipartisan GUIDE Act and calls for legislation similar to the Financial Institution's Examination Fairness and Reform Act introduced as H.R. 4545 in 115th Congress. CBA's letter urges the CFPB to promote a level regulatory playing field through the robust supervision of nonbanks, who are playing an increasingly large role in mortgage originations and consumer deposit taking, among other areas. 


A full copy of the letter is available here.


Banks Can Offer Responsible Short-Term Credit Options: We wrote House Financial Services Consumer Protection and Financial Institutions Subcommittee Chair Gregory Meeks (D-N.Y.) and Ranking Member Blaine Luetkemeyer (R-Mo.) on the important role banks can play in helping Americans in need of emergency funds. The Federal Reserve has stated nearly half of American adults cannot cover an unexpected expense of $400.


Millions of Americans live paycheck to paycheck, leaving consumers with less cushion for emergencies, strained credit scores, and fewer credit options. The need for affordable, short-term liquidity products has become more important than ever.


CBA is encouraged by the OCC and the FDIC’s recent actions related to DAP and the CFPB’s decision to revise the small-dollar rule as these actions will help foster a vibrant small-dollar loan market for consumers in need. As Congress examines the impact the proposed changes could have on consumers, CBA stands ready to provide insight and analysis on how the banking industry could offer a safe and well-regulated short-term bank product designed to help consumers and enhance their financial stability.


CBA’s statement is available here and a full copy of the letter is available here.


FDIC Fintech & Banking Event: The FDIC recently held a research conference on fintech and the future of banking. FDIC Chairman Jelena McWilliams opted to leave the podium behind and instead kicked off the event by sitting down with Secretary of the Treasury Steven Mnuchin to moderate a Q&A session. 


The Secretary offered his views on data aggregation and consumer privacy concerns, indicating “my view, from a consumer standpoint is, it should be very clear and very simple if your data is being shared, who it is being shared with” but he generally prefers private solutions as opposed to government solutions. 


Chairman McWilliams invited the OCC’s Comptroller of the Currency Joseph Otting to the stage for a brief presentation about how to consider fintech as something “we all know in our hearts is necessary” for the overall health of the banking system. He emphasized the OCC is excited about fintech charters and referenced Steve Jobs’ stance on innovation: innovation is not saying yes to everything; it’s saying no to every idea that doesn’t possess the most critical features. 


Paul Watkins of the CFPBDaniel Gorfine of the CFTC and Nick Cook of the UK’s Financial Conduct Authority also took the stage, and shared their perspectives on what’s “new” about fintech: 1) the extent to which fintech is tied to the customer experience and drives the pace of the customer experience; 2) banks’ shifting focus from risk management to customer experience; and 3) scalability. Much like the #1 NOW debate at CBA LIVE 2019, the panel also focused on the importance of talent management. 


The conference concluded with a powerful message from Chairman McWilliams: data is the new currency, meaning data is the new capital. The Chairman recently launched an Office of Innovation at the FDIC, the FDIC Tech Lab, because she wants to know exactly how regulators might be holding back or getting in the way of innovation. 


For fintechs seeking a charter, she had some simple advice: capital does not equal equity. Going forward, in reviewing applications for FDIC charters, the FDIC will continue to follow its statutory mandate to evaluate capital (not equity) adequacy and profitability. 



Synovus Names Jennifer Upshaw Chief Retail Banking Officer: Not only was she named to the “Most Powerful Women” list by American Banker this week, Jennifer Upshaw was also named Chief Retail Banking Officer at Synovus, effective Monday, May 6. Jennifer is a great fit for this role – I had the pleasure of speaking with her about branch management a few years ago. Congratulations and best of luck in this new role! The CBA Team looks forward to working with you.


Will Howle Retires from Citi: Tuesday marked U.S. Retail Banking President and former CBA Board Chairman Will Howle's last day at CitiWith more than 25 years of leadership experience in banking, including commercial and small business banking, deposit services, trust services and wealth management, Will has placed a strong emphasis on team development and continues to mentor up-and-coming leaders. In his most recent role, Will executed the strategic transformation of Citi’s Retail Banking franchise into a client led, omni-channel bank “putting clients first and foremost in our priorities.”


While Will’s retirement is bittersweet, he left his mark on both CBA and the industry and for that we are grateful. The CBA family will miss you!


J.D. Power Ranks Frost Bank #1 Customer Satisfaction: For the tenth year in a row (and the entirety it has conducted a separate ranking for Texas), J.D. Power’s annual retail banking survey ranked Frost Bank highest in customer satisfaction among all regional and large banks doing business in Texas. The study ranks banks based on overall customer satisfaction in 11 regions, measuring satisfaction in several areas such as account opening, product/fees and convenience. Congratulations!


Happy Birthday Mike Allen: Former CBA Team member, longtime CBA Family member and current CBA Executive Banking School faculty member Mike Allen celebrated a birthday this week! Prior to joining First Financial Bank as Digital Director, Mike led CBA’s OnSite Education trainings – one-of-a-kind simulations for banks and the financial services industry. We hope you celebrated well!

CBA’s State of the Week is ARKANSAS, home of  Bank OZK and CBA Immediate Past ChairBrad Conner's beloved Razorback. CBA members in Arkansas hold $24 Billion in total assets, employ 9,000 people, provide $600 Million in small business loans and serve 500,000customers. Check out our state by state numbers here!