6 minute read – Most financial institutions have, for many decades, utilized a strategy of lagging deposit rate increases when market rates rise. However, with the increased competition for deposits at a time when it has never been easier to move funds, this strategy could potentially prove costly in the long run. When determining your … Continued
5 minute read – As rates have increased materially, and liquidity pressure continues to build, leaders are faced with hard and timely decisions. We feel reposting our blog on decay rates will help decision-makers keep critical ALM modeling issues top of mind. The weight of important decisions is always present – don’t lose sight of … Continued
7 minute read – As rates have increased materially, and liquidity pressure continues to build, leaders will continue to be faced with high-impact decisions that can have longer term consequences. Reliable and timely financial decision-information is a huge component of a successful decision-making process. This blog on Static Balance Sheet Analysis (sometimes referred to as … Continued
4 minute read – If you have a longer-term financial roadmap, you’re one of a growing group of institutions that have discovered the strategic benefits of this vitally important tool. If you don’t have one, it’s a good time to consider creating one. Much like technology roadmaps, financial roadmaps – also called strategic financial … Continued
3 minute read – The list of pressures on revenue and earnings seems to grow by the day. There are many different drivers of inflation right now, such as food prices, supply chain issues, and wage growth, each of which brings their own unique impacts. Rising rates, recession concerns, and tightening liquidity bring additional pressures … Continued
3 minute read – With inflationary pressure and rapidly changing interest rates creating a lot of earnings uncertainty, leadership teams are laser-focused on increasing revenue streams to help support the bottom line. As important revenue opportunities are explored, frequently refreshing and assessing where to potentially take more risk will be key. A helpful exercise is … Continued
7 minute read –“Wait…What? My balance sheet structure really hasn’t changed in the last few months, yet the NCUA NEV Supervisory Test now shows that we went from low/moderate risk to high risk, teetering on extreme. Why is there such a dramatic shift in results?” This is an example of recent conversations with credit union … Continued
3 minute read – With the Federal Reserve using monetary policy and increasing rates to combat inflation, there will be different winners and losers. Every financial institution has a unique exposure to rising interest rates. Some financial structures will experience an increase in earnings from higher fed funds and prime rates while others could see … Continued
4 minute read – Competitive pressure on Overdraft Protection (ODP) has become immense. What started as an incoming tide in mid-2021, has turned into a tsunami of pressure at the start of 2022 as more financial institutions are creating market pressure by completely revamping their position with respect to these types of fees. The growing … Continued
5 minute read – When optimizing earnings, choosing a range of environments to plan on is an important strategic decision for any leadership team. Focusing on a range of expected rates, rather than a single rate environment, can help leaders embrace uncertainty – expanding information and encouraging discussions on actions that can improve earnings across … Continued
