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How banks, credit unions can prepare for fintech disruption

Kylee Wooten
Posted by Kylee Wooten

Community banks and credit unions face more competition and disruption than ever before. In an interview for the eBook, Agile Bankers – How Community Banks are Addressing Disruption, Risk and Growth, Tom Bugielski, CEO of Republic Bank of Chicago, says, “The retail banking challenge that we face today is something…...

Think twice before using spreadsheets for these tasks

Kylee Wooten
Posted by Kylee Wooten

Financial institutions, small and large, touch numerous data sources every day, which can present problems when each data source speaks a different language, preventing different systems – or even departments – from obtaining the same data. Exacerbating this problem of inconsistent data, many community banks and credit unions are still…...

How to increase cybersecurity awareness at your institution

Kylee Wooten
Posted by Kylee Wooten

October may be National Cybersecurity Awareness month, but the emphasis put on safeguarding customers’ digital data should be a top priority no matter the time of year. In 2017, nearly half of the population had their data exposed after the Equifax breach. By the mid-point of 2018, there were already…...

How to support sustainable growth by managing credit concentrations

Kylee Wooten
Posted by Kylee Wooten

The following is an excerpt from Alison Trapp’s whitepaper, Managing Growth Safely and Soundly. As 2018 dwindles down, financial institutions are looking to develop strategies for growing their portfolios in the year ahead. Each institution has different goals and various appetites for risk. Risk comes in all shapes and sizes,…...

Benefits of using analytics in banking

Kylee Wooten
Posted by Kylee Wooten

Analytics and “Big Data” are two of business’s favorite buzzwords, and for good reason. In recent years, analytics – and technology to perform analytics – have transformed and reshaped many industries. Sometimes, the distinction between analysis and analytics can be blurred. Analysis focuses on understanding what has happened, while analytics…...

How does artificial intelligence change banking, and how can community banks prepare?

Kylee Wooten
Posted by Kylee Wooten

Artificial intelligence (AI), or the development of computer systems to perform human-like tasks, like decision-making and speech recognition, is a fairly divisive topic. Sometimes, the uncertainty surrounding AI can be met with anxiety, fearing that one’s job or industry may be overtaken by automation. On the other hand, AI is…...

With consumers’ trust comes great responsibility: Approaching data security in a fintech-friendly world

Kylee Wooten
Posted by Kylee Wooten

Highly publicized events in recent months, like the Facebook-Cambridge Analytica scandal, have heightened what is already an increasing concern of consumers – the collection and use of their data and personal information. Fintech apps have taken the world of financial information by storm in recent years. Between personal financial, budgeting/saving and…...

The role of de novo banks in community banking

Kylee Wooten
Posted by Kylee Wooten

In 2005, the Federal Deposit Insurance Corporation (FDIC) received a high of 299 application for de novo – or new – banks, and 237 of those were approved. In fact, from 2000 to 2008, 1,042 new community banks were chartered. But after the recession, de novo activity came to a…...

Why do people switch banks?

Kylee Wooten
Posted by Kylee Wooten

People are willing to experiment with new hairstyles or restaurants, but when it comes to banking, most people are content staying put. Since the financial crisis, customer satisfaction with financial institutions has reached record highs, as evidenced by customer loyalty and repeat usage. According to a survey conducted for Bankrate,…...

Global cash flow analysis: How to maximize the value

Kylee Wooten
Posted by Kylee Wooten

By Mike McCaffery Credit Risk Consultant With the growing number of small business loans being written by institutions nationwide, the need for better analysis of the potential borrowers’ financial situation is becoming more urgent than ever before. Banks that don’t apply stringent credit analysis processes to smaller loans risk hurting…...

This is why direct banking ranks #1 in customer satisfaction

Kylee Wooten
Posted by Kylee Wooten

...and tips for traditional banks looking to close the gap Even though an element of human touch is still a major consideration to loan applicants, direct banks, or branchless banks that operate online, are setting the bar for customer satisfaction. According to the J.D. Power 2018 U.S. Direct Banking Satisfaction…...

This is why you should implement information systems to promote effective challenge

Kylee Wooten
Posted by Kylee Wooten

Effective challenge is the backbone of risk management for financial institutions. It provides a framework for performing critical analysis by utilizing informed individuals who can objectively identify limitations and assumptions, as well as produce appropriate changes. This is a critical way to identify the factors that could put an institution…...

3 Electronic signature benefits for banks

Kylee Wooten
Posted by Kylee Wooten

Implementing new technology can often be met with skepticism. Why fix something that isn’t broken? Just because it isn’t broken, per se, doesn’t mean it’s perfect. Take signatures, for example. It’s hard to comprehend something as simple as a signature can be an obstacle to a financial institution’s speed and…...

Improving banking customer satisfaction with technology

Kylee Wooten
Posted by Kylee Wooten

Technology has drastically changed the ways we interact with different industries, from shopping to taxiing around town. For the first time in its five-year history, the annual Economist Intelligence Unit survey revealed that keeping up with changing customer behavior and technology are the most important trends to bankers – even…...

Banks praise passage of Dodd-Frank regulatory reforms

Kylee Wooten
Posted by Kylee Wooten

For the past eight years, community banks have voiced their struggles of competing under heavy regulations set forth by the 2010 Dodd-Frank Act regulatory reform law, which generated more than 20,000 pages of regulations. In a landmark victory for post-crisis banking policy, Congress voted to enact the bipartisan Economic Growth,…...

How to assess the quality of an API

Kylee Wooten
Posted by Kylee Wooten

Whether buying a new house or shopping for a new pair of shoes, you probably have a checklist for the features you’re looking for in a quality product. If you’re looking to invest in an application programming interface (API), then you should maintain the same standards. The potential that an…...

What is a document library, and why does a financial institution need one?

Kylee Wooten
Posted by Kylee Wooten

Technology continues to make common, everyday tasks easier and more efficient. Document libraries are a great example of an innovation that enhances a once monotonous task. Have you ever sent out a form or document to someone to have them edit it, send it back, and then forget which version…...

Benefits of community banking

Kylee Wooten
Posted by Kylee Wooten

There’s a lot to celebrate in April. From National Canine Fitness Month, National Soft Pretzel Month and National Community Banking Month. As much as we love our dogs and our soft pretzels, we’re especially excited to highlight our community banks. When we began Sageworks, our mission was to help small…...

Why FinTech startups need partners

Kylee Wooten
Posted by Kylee Wooten

Ten years ago, nobody was using the word “FinTech.” Quickly fast-forward past a financial crisis and a surge in smartphones, and you’ll see FinTech disrupting and transforming the landscape and direction for financial services. Now we’re beginning to see a FinTech renaissance, where the objective for FinTech is less about…...

Using technology to reclaim the SMB lending market

Kylee Wooten
Posted by Kylee Wooten

Community banks have lost significant ground in the small business lending (SMB) market to large banks in recent years. While the number of small business loans hasn’t changed dramatically, the emphasis of control has. With the vast majority of small business lending being dominated by large banks, and that disparity…...

Better together: Banking and Fintech

Kylee Wooten
Posted by Kylee Wooten

While Fintech companies were initially viewed as a banking competitor, the two are finding that there is greater benefit to working together. According to the 2017 World Retail Banking Report, 91 percent of banks and 75 percent of Fintechs responded that they expect to partner with one another in the…...

What is an API and how can it help financial institutions?

Kylee Wooten
Posted by Kylee Wooten

A couple of months ago, Sageworks introduced its own API Network.  APIs, or application programming interfaces, are essentially communication tools for software applications.  Let’s break it down even further. What is an API? If you’ve ever used Yelp, then you’ve been able to search through different restaurants or attractions, selected…...

Trust but verify: Controlling processes

Kylee Wooten
Posted by Kylee Wooten

One of the key steps in implementing policy is to make sure what’s required by the policy is actually done. A “trust but verify” approach both ensures that processes are being followed as well as evidences to audit functions and external parties that strong controls are in place. There are…...

Making credit analysis simple

Kylee Wooten
Posted by Kylee Wooten

If the mantra of the movie Field of Dreams was, “If you build it, they will come,” then the mantra for credit policy should be, “If you make it simple, they will do it.” This is not to say that credit analysis is simple. Rather, processes that effectuate credit policy…...

Management consultants will hear “The Sageworks Story”

Kylee Wooten
Posted by Kylee Wooten

Brian Hamilton, founder and vice president of product development at Sageworks, will be a keynote speaker for the Institute of Management Consultants (IMC) Carolinas regional meeting at the Grandover Resort in Greensboro, N.C., on Feb. 12. IMC USA is the certifying body and professional association for management consultants and firms…...

Top pain points for business borrowers

Kylee Wooten
Posted by Kylee Wooten

The Federal Reserve’s 2016 Small Business Credit Survey found that businesses more often express satisfaction with a traditional, small-bank lender than with online lenders, defined as nonbank alternative and marketplace lenders. But Peter Brown, vice president of strategy at Sageworks, notes that online lenders improved their satisfaction levels by more…...

Using technology to boost value for business borrowers

Kylee Wooten
Posted by Kylee Wooten

In today’s competitive lending environment, financial institutions may be tempted to focus on interest rates and terms to secure the small business customer’s business. However, that may not be a sustainable way to drive business-loan growth, especially given regulatory scrutiny, the hazards of approving credit that is not appropriately priced…...

A common thread among banking priorities in 2018

Kylee Wooten
Posted by Kylee Wooten

Like clockwork, you can expect to see people making their bets for the “biggest trends” we will see in the New Year. Along with predictions for corduroy pants and cryptocurrencies, there are also countless predictions for banking trends in 2018. One common thread among many of the predictions is the…...

When credit risk ratings don’t match expectations: What next?

Kylee Wooten
Posted by Kylee Wooten

Consistency in risk ratings is critical for commercial lenders. There are plenty of best practices to follow when choosing your risk rating factors to ensure an effective and consistent risk rating process. Risk rating becomes a craft: the more you do it, the better you become at it. When you’re…...

How to decide whether to build or buy CECL model software

Kylee Wooten
Posted by Kylee Wooten

Most non-public business entities aren’t required to implement the current expected credit loss (CECL) model until fiscal years starting after Dec. 15, 2020. However, many financial institutions are heeding the advice of the Financial Accounting Standards Board (FASB), and have begun taking steps to ensure effective implementation of this major…...

Clarifying the rules for HVCRE

Kylee Wooten
Posted by Kylee Wooten

While commercial real estate plays a crucial role in growing banks’ loan portfolios, some industry participants have said the confusing rules defining what projects qualify as High Volatility Commercial Real Estate (HVCRE) have hindered lending. H.R. 2148, or the Pittenger Bill, has been introduced to help sift through the murky…...