Banks or Credit Unions: Five bank transfer tips for consumers This article was written several years ago, but changing banks happens everyday....This is a reprint.... As a former financial services executive, my professional experience did include exposure to both commercial banks and credit unions. The diverse exposure to both industries does provide insight to the internal differences of technology and organizational structure when transferring a banking relationship. Consumers are exposed to many opinions about the best choice of institution to house a banking relationship, and opinion is irrelevant(i.e. my opinion) when information is a better tool to insure "a change will do you good". However,the following five tips should be explored in a comparison analysis of your current bank and a potential new bank or credit union. 1) Deposit Access to Funds Direct Deposit-Teller deposits, ATM deposits, Incoming Wire Transfers. Review current deposit activity for … [Read more...]
Banks return to Subprime under a must win scenario
The banking system may not be ready to return to the world of subprime lending, but the time may come for the banks to ease credit standards to afford more people the access to homeownership with a risk based pricing and provisions set in the loan. In the 2008 crisis, these loans were a no win situation for the borrower and eventually the bank. A few tweaks should be considered to make subprime lending a tool for people to rebuild credit and obtain homeownership. The 2008 Subprime loans were never a winning scenario for the client with imperfect credit. The banks can use Subprime lending with a much different scenario than in 2008. The first scenario would be affordability of the borrower on the residential property. Second, the pricing matrix to price in risk for the bank but not price out the borrower. Third, a rewards program would benefit borrowers in rate reductions for making monthly payments on time. This would benefit the banks in providing a second chance to be leaders of … [Read more...]
Why are smaller banks going the way of the dinosaur ?
The end of the road for smaller banks in America. Seeking Alpha was reporting the decline in the number of banks with assets under $100 million dollars in the 4th Quarter of 2012 from 100 in September to 80 in January 2013. Remember, around 1000 small banks control only 2% of the deposits, but originate 40% of the small business loans in the United States. The reasons are a set of challenges that smaller banks are being consolidated, and the executives are looking at consolidations as the ticket out of the new normal in the banking world. First, the Consumer Financial Protection Bureau (CFPB) has come to life with plenty of juicy regulation to run the gambit from small credit loans to mortgage lending. Smaller banks are unable (under $1 Billion) to handle the new regulatory environment with new administrative costs and capital requirements. Many bankers are not looking to the success of their credit union brethren for collaborator as a key to their success, but consolidation is … [Read more...]
What are the three ways to tackle personal finance in America.
The first way is to manage the situation of the unbanked. Consumers and Bankers are the two entities examining the relationship one has with the other. Banks are allowing big profits to blind the industry to develop a long-term strategy to insure sustainability in the marketplace along with profitability. The banks are excluding one out of every three Americans over 18 accesses to mainstream banking services. These consumers are locked out of the mainstream financial services industry because of charged off checking account or low credit scores to locked millions into the world of underbanked or unbanked. These consumers become a part of the underclass with very little change of restoration into the financial mainstream. The assumption is the underbanked or unbanked are not in the relative situations of being irresponsible. Life events do happen. We forgive our bankers; we can forgive our consumers within a reasonable set of parameters. Unbanked The Next … [Read more...]
Breaking News: Mortgage lending will be hit hard under regulations announced today under Dodd-Frank
Breaking News: Dodd-Frank regulations over new mortgages loans in July 2013 will be a high impact event for the consumer..... Sources in the banking industry are saying an announcement was made today in relation to the implementation of the next phase of Dodd-Frank on the mortgage origination. The biggest impact of the next phase of regulatory gluttony is to the consumer. A consumer will not longer have the ability to purchase life insurance to payoff strictly the outstanding mortgage on their home. The new law will be implemented in 5 months, and this impacts the consumer in choice of life insurance options to payoff the mortgage upon the mortgage customer's untimely death. Thewiseme.com will be verifying these sources for further details, and will report later today on the exact details of the new law when we obtain the copy..... Related articles QM, QRM to Have Huge Impact on Originations (broadcastarchives.net) Reflection: From the Fed to Dodd-Frank, a legacy of corporate … [Read more...]
Why Regions Bank Excels in Social Media | Bank Innovation
http://bankinnovation.net/2013/02/regions-bank-recognized-for-excellence-in-social-media/ Why Regions Bank Excels in Social Media JD Power recognized Regions Bank as a leading provider of social media content among banks in a study published on February 14. The results were based on responses from “more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel.” The institutions recognized in the Banking category were Capital One, JPMorgan Chase, Huntington Bancshares, Inc. and Regions Bank. Regions is a relative newcomer to the social space, launching the first of its two Twitter feeds, @askregions, in December 2011, and initiating Facebook and YouTube channels in April 2012. (The other Twitter feed is @regionsjobs.) The green piggies at left — Facebook visitors were invited to fill in the pigs’ word balloons — are a popular and recurring presence on Regions’ social media. “We put the … [Read more...]
Zeek Rewards $600 million dollar ponzi scheme may leave customers short on assistance from primary bank.
August 17th was the news story date about Zeek Rewards or Rex Ventures based in Lexington, NC being busted by the Securities and Exchange Commission for being a $600 million Ponzi scheme. For more information about the dynamics of Zeek Rewards, the following link to CNN can provide additional insight into the dynamics of the scheme. In this article, the topic is the banking customers who are looking to their traditional banking entity to assist in recovering some of the funds recently deposited into this Ponzi scheme, I have a copy of a couple of bank's internal policies surrounding their treatment of all customer's attempting to recoup funds from Zeek Rewards, and the documents state that the process will not be an easy experience for the consumer. Recourse to recoup money is like entrance into heaven, a camel's hair through the head of a needle. The documents are harsh on the recourse of the customer to remove the bank from the forefront of this fight. One bank … [Read more...]
Business Day: Lessons from financial crisis
Lessons from financial crisis can help your future planning FRIDAY, 31 AUGUST 2012 08:44 HOPE MOSES-ASHIKE Of a truth, there are several lessons to derive from financial crisis, which can strengthen your personal finance and help you mitigate future occurrence. As it were, many people are experiencing sleepless nights, stomach cramps, increased nail biting, and just above all stress as a result of the negative financial pictures posed by today’s financial economy. Experts say there are two lessons to lean from the financial crisis. Firstly, those countries that were better prepared in advance of the crisis have been better able to deal with its effects. Secondly, more countries should endeavor to adjust their policies so that they are prepared, or better prepared, to deal with the inevitable global crises of the future, including through the adoption of countercyclical measures Furthermore, the financial crunch is the breakdown in the securitization … [Read more...]
Credit Union competition will bring accountability to the banking industry
The banking industry made a conscious decision to change the primary business model from community and retail banking to alternative business segments to maximize profitability at any cost and ignoring the risk. The banking industry made this decision, and the decision has left a widespread opening to meets the needs of the consumers and small businesses being sidelined in lieu of the banks realigning prioritization away from the retail model. In lieu of this move, the credit unions are pushing legislation in Congress to allow caps of business loans to be raised for the credit unions to allow these entities to fill a gap left in the marketplace. The banks are throwing every objection and obstacle to ensure this legislation never passes. However, the banks made a decision to give up this market. Doesn't that decision alone disqualifies the banks from any exclusivity in the business banking marketplace? The banking industry has become a multi-fractured monopoly. … [Read more...]
Bank profits, gas prices, and gold prices pose bad news for the American economy
MarketWatch is reporting bank profits are recovering since the depths of the economic crisis in 2008, but loans are not showing signs of recovering in coordination with profitability. MarketWatch does give an example of graphs in relation to bank profitability and loan growth. The banks are not focusing in providing financing in the communities as day trading and buying government debt is more lucrative and profitable in relation to personal consumer loans. The return of investment is much greater for the better even though the risk factor is a systemic danger to the larger banks who are participating in this practice. In other economic news, gas prices are skyrocketing through the roof in lieu of Hurricane Issac forcing refinery capabilities to be shut down putting more pressure on the price at the pump. MarketWatch states that gas prices are the highest this Labor Day in recorded history. That shows the state of the price situation at the gas tank. How can any … [Read more...]
