The Banker Next Door

Episode 228: What should bank board members be reading?

This episode looks at eight different books that bank board members should be reading. If you are thinking about joining a bank board, have recently joined a bank board, or even if you are a veteran board member, you should check out this list!

Episode 227: Is the Fed's 2% inflation target a good mandate?

This episode examines the Fed’s 2% inflation target. First, does it make sense as a good target? Second, is it good or bad that the Fed is going to decrease rates? Third, why is the Fed always praised for fixing the problems they create?  

Episode 226: Basel III Endgame Update!

This episode looks at multiple articles providing an update on the proposed legislation known as the Basel III Endgame. This legislation is looking to dramatically increase the amount of capital being held at the largest financial institutions, not only in the U.S. but in the U.K. and Europe. The legislation was introduced in July of 2023 and received major backlash from banks, trade groups, and politicians. The new proposal appears to be a major compromise. Will this get approved in Congress and when?

Episode 225: How can your bank improve digital lending?

This episode reviews a recent blog post form PCBB titled “5 tips to improve your digital lending efforts.” PCBB reviewed the Digital Banking Report 2024 on the state of digital lending in banks. Some of the key findings reviewed: types of credit that can be initiated online vs mobile, the end-to-end digital process, branch visits, time to complete an application, and restarting an interrupted application. In addition, PCBB provides 5 tips on ways that banks can improve their digital lending experience. Links to the blog post and the 2024 State of Digital Lending report are included below.
Link: 5 Tips To Improve Your Digital Lending Efforts (pcbb.com)
Link: 2024 State of Digital Lending - Digital Banking Report

Episode 224: What do small businesses want from their bank?

This episode reviews a recent blog post from PCBB titled “What do small businesses really want from their FI?” A recent survey from BAI of small business customers is reviewed to see their comments on primacy, bank switching, channel preference, branch proximity, improving digital capabilities, and generative AI. What is real and what is perceived about banks digital capabilities, branches, and services?
Link: What Do Small Businesses Really Want From Their FI? (pcbb.com)

Episode 223: The rise of Tether! (Crypto Series Part X)

This episode examines the growth of the stablecoin Tether. We also look at what is a stablecoin. How Tether works and how Tether is different from TerraUSD, which failed in 2022. Links to several articles and sources are listed below.
Link: Tether: The Cryptocurrency Fueling the Financial Underworld - WSJ
Link: Tether (USDT): Meaning and Uses for Tethering Crypto (investopedia.com)
Link: TerraUSD Crash Shows Risks of Algorithmic Stablecoins (investopedia.com)
Link: Is Stablecoin the Answer to All Cryptocurrency Problems? (investopedia.com)

BND: Strategy Room 9-13-2024

The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.

Episode 222: Can trademarks in banking hurt your financial institution?

This episode examines a study from the Federal Reserve titled “Trademarks in Banking” by Ryuichiro Izumi, Antonis Kotidis, and Paul E. Soto. The researchers found that banks that share their name with a failed bank experience a decrease in transaction deposits relative to banks with similar characteristics but different names. In other words, if you have two banks named “Citizens Bank” but one fails, that will be detrimental to the remaining bank. Guilt by association, if you will. A link to the study is included below.
Link: Trademarks in Banking (federalreserve.gov)

Episode 221: How will AI be adopted into analyzing credit risk?

This episode looks at how AI can be incorporated into analyzing credit risk within a bank. Many banking professionals in charge of credit risk at their respective financial institutions would like to see how AI can be used in client engagement, credit decision and underwriting, portfolio monitoring, and customer assistance. A link to the PCBB BID daily newsletter blog is included below.
Link: Survey: Credit Risk Leaders Plan Rapid AI Adoption (pcbb.com)

Episode 220: Do you know how heavily your state is regulated?

This episode examines a report from The George Mason University Mercatus Center titled “Quantifying Regulation in US states with State RegData 2.0” by James Broughel and Patrick McLaughlin. The authors try to answer the question, how regulated is your state? A link to the study is included below.
Link: Quantifying Regulation in US States with State RegData 2.0 | Mercatus Center