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Posts tagged with "Loans"

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…

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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…

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01/30/2019

Should you be doing something with reference rates?

Just a few short years ago, banking experts encouraged community banks to tie variable rate loans to LIBOR. They said the switch would help smaller banks compete with big banks, while reducing their basis risk, operational overhead, and more. Now with LIBOR facing its probable demise in 2021, many of these same experts are encouraging…

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08/29/2018

Move over LIBOR. SOFR is gaining momentum.

Although the Federal Reserve Bank of New York has been publishing the Secured Overnight Financing Rate (SOFR) since April 3, 2018, SOFR’s popularity seems to be gaining momentum as of late. On August 15, 2018 a headline in Bloomberg read, “New U.S. Overnight Rate Moves Out of LIBOR’s Shadow.” The article outlined major debt issues…

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03/13/2018

Lending Signals: Powerful Tools to Find and Target Consumers for Loans

Last week, I fired up an app on my phone and while using it, a message popped up. Nordstrom was having a sale on Ted Baker suits, I was intrigued … and they knew I would be because they know what I like. This is the new norm for businesses today, data is changing the…

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03/10/2015

Credit Union Marketers: The Keys to Selling Quality Auto Loans

Nearly 250 million registered vehicles are on America’s roads, according to U.S. Census data. Most of them are private or commercial vehicles and many of them are financed. Has your financial institution been overlooking the potential revenue stream represented by auto loans? A high number of defaults during the economic downturn might have made some…

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02/18/2015

Your Bankers Should Have Skin in the Game

Motivating people often requires a delicate balance of carrots and sticks. For years, the banking industry has done a pretty good job of providing carrots to inspire loan officers to increase their numbers, and write more and bigger loans. Many industry watchers would argue that emphasis on carrots contributed to the sheer volume of unsustainable…

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