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Richard's Rapid Fire - September 28, 2018
This week, Citi held their first CBA OnSite Education: MarketSim, led by Paul Leventhal, at its NYC location! This one-of-a-kind replica of a retail bank marketplace leverages a simulation to deepen understanding of the risk/reward trade-offs in developing a retail strategy, integrating customer segmentation, product offerings, pricing, delivery channels, marketing and branding. Interested in bringing an OnSite program to your bank? Learn more about MarketSim and explore other CBA OnSite Education Curriculum here!
CBA Home Equity Committee In-Person Meeting: This week, we hosted CBA’s Home Equity Committee – our third fall in-person meeting! Chair Thomas Parrish of BMO Harris Bank and Vice Chair Domenick Forte of Citizens welcomed the committee and kicked off the day with an Experian presentation from Analytics and Business Development Vice President Michelle Raneri, Analytics Expert Sandy Wormer, Account Executive Brian Perry and Mortgage Expert Perry Fleming. The presentation focused on the home equity market lull and data demonstrating a major consumer switch to the personal loan market. We are very excited to continue the conversation at CBA LIVE 2019: The Currency of Now, where Experian plans to address which consumers are taking home equity versus traditional or fintech loans, and why.
Our business conversation focused on home equity attrition/balance growth, home equity wholesale and correspondent lending, demand expectations for 2019, product/policy/marketing, customer research and CBA’s agenda for regulatory reform. To conclude our meeting, Credit Risk Division Appraisal Specialist Kevin Lawton and Appraiser Stacey Fluellen of the Office of the Comptroller of the Currency updated us on the regulatory agency’s current focus.
OCC Releases Bank Supervision Operating Plan for FY19: On Tuesday morning, the Office of the Comptroller of the Currency (OCC) Committee on Bank Supervision (CBS) released its fiscal year 2019 Bank Supervision Operating Plan. The plan outlines the supervisory priority objectives for individual national banks, federal savings associations, federal branches, federal agencies and technology service providers. In addition to the baseline supervision to assign ratings, supervisory strategies will concentrate on various risk areas and plans to adjust strategies during the fiscal year in response to emerging risks and supervisory priorities. The statement is available here.
Dodd-Frank Update: Section 1071 of the 2010 Dodd-Frank law requires the Bureau of Consumer Financial Protection to issue rules or guidance for the collection of data from financial institutions. While the rulemaking of Section 1071 seems to have slowed down greatly under the new administration, CBA’s conversations with the Bureau have indicated work on 1071 continues. Stay tuned for more updates!
Suite 550 Podcast: The next edition of CBA’s Suite 550 podcast is live. It features Rich Porrello, the chair of CBA's Auto Finance Committee and EVP - Auto Finance Group Director with Huntington, and Lou Loquasto, the Auto Vertical Leader at Equifax, discussing the latest auto lending trends, the continued strength of the auto lending market as well as what cars Americans are buying, among other hot topics in the sector. Check out our conversation on the latest episode of our Suite 550 podcast!
U.S. Bank Takes on Fintechs: This week, U.S. Bank launched two small-business offerings - an online small-business-loan platform and a small-business credit card - in an effort to top fintech competitors. The platform was built to look and feel like fintech and make loan decisions in one day. The process lasts about five minutes and can be done entirely digitally. The credit card, U.S. Bank Business Leverage, comes with “flexible rewards” and will be rolled out on Tuesday…Pretty cool stuff. Learn more here.
JPMorgan Chase Ranks No. 1 In Customer Satisfaction: A recent study by J.D. Power ranked JPMorgan Chase as tops in customer satisfaction scores among the largest banks with PNC coming in second. Congrats to these and all the other great CBA members on the list for another successful year of customer satisfaction! Full article here.
Congratulations to This Year’s Most Powerful Women in Banking!: American Banker released its annual Most Powerful Women in Banking,Women to Watch and Most Powerful Women in Finance lists. The lists had a lot of familiar names, including former CBA Board Member Nandita Bakhski, President and CEO at Bank of the West, CBA Government Relations Council Member Ernie Johannson with BMO Harris, CBA Mid-Tier Forum Member Patricia Kellerhaus with Commerce Bank, Karen Larrimer with PNC, and Head of Consumer Banking Mary Mack with Wells Fargo – a keynote speaker at CBA Executive Banking School.
Standouts at other CBA Member Banks come from JPMorgan Chase, Wells Fargo, PNC, BMO Harris, BBVA Compass, SunTrust, Fifth Third, KeyBank, MUFG Union Bank, TD, Citizens, CIT, Bank of the West, HSBC, Citi, BB&T, Ally, Zions, U.S. Bank, Discover, Charles Schwab, Synchrony Financial, Synovus Financial, Commerce Bancshares and Huntington.
TD Bank Outpacing Peers in Promotion of Women: After hiring Head of Diversity Kelley Cornish last year in combination with a new mentoring program launched in 2016, TD Bank has managed to completely restructure how it promotes women’s career development. The program called Take the L.E.A.D. (Leadership, Engagement, Achievement, Development) selects a half-dozen women each year for a 12-month development program, targeting employees who demonstrate potential to handle top executive positions. Each employee is paired with a female executive who serves as a mentor for one-on-one sessions in addition to group and cohort sessions on topics such as “emotional intelligence, executive presence and leadership skills.” The efforts are paying off…Last year, DiversityInc found about 61% of all TD Bank employees promoted into management positions were women, compared to 51% for peer banks. Kudos to TD Bank’s awesome representation of women in senior leadership! Read the full article here.
Credit Cards & Unauthorized Accounts: A document from the Office of the Comptroller of the Currency claims credit cards top bank statements as the most commonly identified source of unauthorized customer accounts. As part of the digital transformation, consumers are increasingly choosing to open credit card accounts online which has led to numerous cases of unsolicited credit cards. As a result, the OCC urges banks to obtain customer consent via reliable documentation, and importantly, to retain it! Learn more here.
New Orleans Visit: This week, I visited three CBA member banks – IBERIA, Hancock Whitney and Crescent – in my home state of Louisiana! CBA Assistant Vice President of Membership Kevin O’Connor and I ate well, discussed all things retail banking and enjoyed our time with member banks in New Orleans! Of note, our meeting with Hancock Whitney, shown below, was one of the last at their current location, open since 1908, as they are moving to a new tower in a few weeks – One Shell Center renamed Hancock Whitney Center!
Our meetings (clockwise from top left) with Crescent, CBA Board Member Bob Kottler of IBERIA and Hancock Whitney in New Orleans, LA.
Cajun Thoughts: The banking industry continues to be affected by the digital transformation, but we are not alone. America’s television viewers are "cutting the cord" across all age groups and watching significantly less traditional TV, instead opting for YouTube, Facebook, Netflix, Hulu and other means … I made my first visit to the real Ozarks last week where I found out the show “Ozarks” is filmed in Georgia, and “Yellowstone” is filmed in Utah …CEO Jamie Dimon of JPMorgan Chase said the reputation of large banks may take 25 years from the financial collapse to recover … Reading List:Who is Michael Ovitz? And Gerald R. Ford (Vastly Underrated President) … To Branch or Not to Branch: JP Morgan & Bank of America both announced new branch openings in new territories … St. Louis airport gets negative mark for rental cars, requiring a bus. JAX remains my top airport … Elizabeth Warren actually has a really great idea this week: apply CRA to Credit Unions.
Happy 50th to Jon Giles: CBA’s Home Equity Lending Committee was lucky enough to celebrateJon Giles of TD Bank’s big birthday with him in D.C. yesterday! Wishing you a great year!
Michael Cleary’s Team Wins Championship Hockey Game!: After a full day of work last Thursday, Co-President Michael Cleary of Santander Bank and his team won the Championship Hockey Game. We don’t know how he does it all...Big congrats to Michael and team!
STATE OF THE WEEK
CBA State of the Week: We are adding a new feature to Rapid Fire to honor the work CBA Members do in all 50 states. We are starting with TEXAS! CBA Members in Texas hold $983 Billion in total assets, employ 167,000 people, provide $19.9 Billion in small business loans and serve 12 Million customers! Shameless plug…«GO COWBOYS«...Stay tuned for next week’s featured state and check out CBA state by state numbers here!