Search: "business model"

Threats To Interchange—More Than Just An Income Issue

The financial services industry is still holding its breath awaiting the repercussions of the Durbin Amendment reforming debit interchange.  The initial threat for which many are preparing is a material reduction in non-interest income.  Although the amendment exempts financial institutions with less than $10 billion in assets, opponents argue that merchants will (of course) coerce […]

Corporate Shuffle: Questions To Ask When Searching For Alternative Providers

Many credit unions rely on the corporate credit union system for mission-critical functions; however, changes in the corporate system are imminent. Alternative providers could possibly include other corporates, newly formed CUSOs, the Federal Reserve, large banks and publicly held companies.  It is important to objectively evaluate each on their real merits. Following are just a […]

Establishing Concentration Limits

Establishing concentration limits that enable you to make sustainable, sound business decisions while trying to satisfy new regulatory pressure is very tricky. The supervisory letter on concentration risk states that examples of concentrations within an asset class include… “Residential Real Estate Loans—collateral type, lien position, geographic area, non-traditional terms (such as interest-only, payment option, or […]

10 Reasons Things Went Wrong… Has Anything Really Changed?

For years, we have been emphasizing a list of 10 reasons (not in order of priority) risks are not appropriately managed in the financial services industry.  Many of these reasons contributed to the volatile economic environment we find ourselves in today. Mindset—We can take action when bad things happen so things will never be as […]

Lacking Consumer Confidence and Lending

In spite of recent signs that the economy may be turning around—including a 0.3% increase in real consumer spending in January to the highest level since May 2008—consumers still don’t seem to be buying a strong recovery.  February’s present situation index, which serves as an indication of how consumers are feeling with regard to the […]

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