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...]
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...]
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 the … [Read more...]
The events in the banking industry that empowers the consumer to impact change
Consumers do not have a consolidated platform or information to understand the changes or events in the financial services industry that involvement of the public over certain events can bring about drastic change. The uproar over the Bank of America debit card fee earlier in the year was a sign the consumer has power to bring change to the industry. Four events are evolving during this heated election season, and the following information will provide insight into the changes. A second article will be online by 9pm tonight as bank executives, small business owners, and main street consumers will be interviewed to explain the importance and the available options for consumers to ensure changes to begin to bring forth some measures to make a better financial system for us all. 1) Credit Union legislation is pending in Congress. The passage of this legislation would allow the industry to provide business loans to the communities served by the industry. Senator Reid has promised … [Read more...]
Credit union faces lost opportunity as election nears
The credit union industry has legislation in Congress to increase the lending caps on business loans up to 27.5% of assets. The credit union is not a perfect entity, but they would be flexible via the increase in the lending caps to be a competitor to the commercial banking market who has a new core business model that does not include making consumer or business loans in the communities. The credit union could fill the gap to provide the necessary credit for small business owners to obtain the financing needed to expand and create jobs, but the uncertainty in the political arena and confidence in the banking system is killing the organic growth needed to help restore a real recovery to the economy. A full disclosure, my professional experience has been in commercial banking and the credit union industry. My forte is commercial and consumer lending, and I realize the current needs in the marketplace. I am in shock the leadership of the credit union … [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...]
The losing battle of credit unions and consumer protection as election looms
Washington, DC- The Credit Union National Association (CUNA) it the association in the forefront of the Membership Business Lending legislation in Congress. The 2012 Election season is fast approaching a finality. The credit unions and CUNA are squandering an opportunity to shape the dialogue in this campaign to pressure a deadlock Congress to pass legislation to raise the caps of business loans in relation to total assets up to 27.9%. This increase would be a influx of competition, and serve a market being under served by the commercial banking industry. What are the issues behind the complacency? The Consumer Financial Protection Bureau has shed the mantle of being the unique bureaucratic structure in Washington. A mountain of papers are sitting on the desk for review to change customer disclosures. A former banker of 13 years do not allow the clarity to full grasp all the proposed changes. In addition, the bureau made a decision that home mortgages going through the … [Read more...]
Credit Union CEO David Maus in Denver $11M salary stuns industry
By Denver Post Gr8fulDude Dude wrote: Why does it feel like we are punishing this guy for his success. Used to be we pushed our kids to do good things. Now we scorn those who have successful long term careers. Sad to see in a way. How about this: If you are so outraged by what he has earned, then take your money and business elsewhere. And this post sounds more of the victim mentality that is prevalent within society, and with a majority of your posts. Here's your lesson, in order to be successful, the environment defines what it is to be successful, it is not an internal structure; it is purely an external construct laid on each and every one of us. The problem is, that the system here is developed internally (through the board and Maus), and approved by a small group of individuals (most likely Maus's buddies) defining what is successful. It is not outrage that Maus made so much, it is that they wrote the rules after the game was started. If you can't identify that this is the … [Read more...]
Economic recovery is not salvation for the banking industry
The recovery is taking hold in America, and recovery equals more savings, more lending, and more business start ups. The positive in a recovery is sugar coating of the negative in a recessionary period. A consumer/business owner must have a relationship with a financial company from Wells Fargo to Ace Cash Express. A prospective client is embarking on a new banking relationship should commit to research in relation to financial needs, but a character check is an equal qualifier on the determination of bank in a search. The bank may be a perfect match on products and services, but the CEO is mediocre with some questionable leadership judgements to impact the bank or respective clients. The CEO is mediocre in leadership; the bank is mediocre in performance irrelevant of the portfolio of products and services.What litmus test is appropriate in the determination of a great leader. The following article was written for the Consumer Banking Examiner column in early 2010. The CEO of … [Read more...]
DC Community Banks must strategize to survive
DC Community Banks cover a large coveted footprint of DC proper, Northern Virginia, and Maryland as an aggregate unit, but individually are fragmented in market presence and penetration. The individual community bank is a weakness in the current economic environment, and this weakness is a vice on the bank's ability to be competitive, hamper revenue and market growth, and vulnerable to any minor flux in the market or portfolio. DC Community Banks are missing a market opportunity in wake of the historical demise of Chevy Chase Bank, and the vacuum of a regional player in the market leaves a marketplace of small community banks and banking giants with headquarters elsewhere. The Washington Post details the challenges of the community banking industry in the DC marketplace. Recent events in the implementation of the financial reform bill and loan demand in a flat economy. Strategize to survive is a way for community banks to collaborate, coordinate, and innovate to capitalize on … [Read more...]
