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What banks can learn from what business borrowers dislike about online lenders

Mary Ellen Biery
Posted by Mary Ellen Biery
applying-online-laptop-benchmark-accounting-unsplash

As bankers know, online and “alternative” lenders are a small but growing group of players in the business lending market. Small business loans represented about $7.4 billion of originations from alternative lenders in 2016, according to data from Morgan Stanley’s Alternative Lending Group and the Cambridge Centre for Alternative Finance.…...

The different use cases for CECL methodologies

Amanda Rousseau
Posted by Amanda Rousseau

Financial institutions are currently planning and building models for the quickly approaching implementation of the current expected credit loss standard, or CECL. The accounting change brings many concerns surrounding implementation dates, modeling, qualitative factors, economic forecasting and documentation/reporting. More specifically, many bank and credit union managers and executives think that…...

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,…...

Assessing risk beyond the 5 C’s of credit

Joseph Lowe
Posted by Joseph Lowe

When assessing the potential risks a borrower presents a bank’s portfolio, the typical starting point for most lenders is the “Five Cs of Credit” – capacity, character, capital, collateral and conditions. But as a younger generation, burdened with excess debt, becomes the prime demographic for commercial and consumer loans, community…...

4 ways to help investors understand the CECL transition: Disclosure tips

Mary Ellen Biery
Posted by Mary Ellen Biery

As Securities and Exchange Commission (SEC) filers prepare to meet the deadline to implement the FASB’s current expected credit loss model, or CECL, for fiscal years beginning after Dec. 1, 2019, SEC registrants are weighing what CECL transition disclosures to provide about the new standard and its expected impact. Some…...

Banks tap technology to challenge fintechs in online lending

Mary Ellen Biery
Posted by Mary Ellen Biery

U.S. Bank this week rolled out an online small business loan platform aimed at helping it compete with fintech giants like OnDeck, which announced this month it had surpassed $10 billion in total loans originated to small businesses since its 2007 start. It’s one of hundreds of banks across the…...

After FASB’s recent changes, CUNA still seeks CECL relief

Amanda Rousseau
Posted by Amanda Rousseau

Credit unions are happy with some changes the Financial Accounting Standards Board (FASB) is making to Topic 326, but they'd still like to see more, according to a letter from the Credit Union National Association (CUNA). In a Sept. 17 letter commenting on the FASB's recent proposals, CUNA's senior director…...

Prioritize SEO: Compete with big banks

Joseph Lowe
Posted by Joseph Lowe
seo-alphabet

It’s no secret that most borrowers research banks or credit unions before deciding whether or not to utilize their services. The question is, what is your financial institution doing to ensure its website is optimized so that it’s on the shortlist of banks that show up on a potential borrower’s…...

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…...

3 Benefits of automating loan decisions 

Mary Ellen Biery
Posted by Mary Ellen Biery
handshake-deal-loans

A bank or credit union in South Florida obviously has different real estate market considerations than one in Seattle. Similarly, every financial institution has a unique business plan and its own appetite for risk. That’s why many financial institutions aren’t interested in an off-the-shelf solution for automating their lending processes,…...