Blog

Business
Insights that
drive results

08/19/2019

Rates are falling. Margins Are Shrinking. Why, and What Next?

Last month we wrote about an upcoming cut in interest rates. At the time, we wrote about what financial institutions—especially smaller institutions—should expect. A couple of days later the Federal Reserve announced the first target Fed Funds rate cut in a decade. So now we have some clarity—what can we learn? Managing rates is a…

Read More >

07/30/2019

Interest rates, market instability, and what it all means

“Turbulent” is probably the safest way to describe the interest rate landscape for financial institutions in 2019. Opinions about upcoming rate movements have taken a rollercoaster ride over the past several months. This is based on comments from Federal Reserve Chairman Jerome Powell, and the Federal Open Market Committee meeting again this week. We will…

Read More >

07/25/2019

Reference rates and the LIBOR sunset: Cause for concern?

In June 2017, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight Financing Rate (SOFR) as the replacement for USD LIBOR. SOFR is based on the overnight interest rate received for lending cash against Treasury securities. These debts are backed by the collateral of US Treasuries, making SOFR a secured rate. Futures and overnight…

Read More >

07/14/2019

The Healthcare Payments System Needs a Good Doctor

Healthcare has been transitioning from paper-based processes to electronic transactions for years – but the pace has been a bit slow and sickly. Despite regulatory mandates to convert payments to electronic channels, much of the industry still largely relies on paper and telephone calls for billings and payment. According to the Trends in Healthcare Payments…

Read More >

07/08/2019

Treasury 3.0: Why Banks Need Customer-Centric Data Mining

Bankers have seized upon “customer-centricity” as a core value, recognizing that building shareholder value requires banks to create value for their customers. But why doesn’t this core value translate to data mining? Banks enjoy a forensic level of data about their customers. In the B2B space, banks can infer: How their customers manage and invest…

Read More >

07/08/2019

Small business financing: Opportunities for proactive lenders

Multiple players offer diverse solutions to help small businesses (SMBs) manage their demand for financing. Yet despite intense competition and innovation among lenders, small businesses are still underserved for financing. A number of factors contribute to this shortage of available financers, such as the average size of a loan and accompanying risks. Due to this…

Read More >

07/02/2019

Big deals altering the payments landscape

There’s a decent chance we’ll look back at the first half of 2019 as the period when the US payments landscape changed permanently. The chain of events began in January with Fiserv’s surprise announcement that it was acquiring First Data in a $22 billion merger. Speculation quickly followed on how other leading financial services technology…

Read More >