50 Years Ago: Policy Debates Fuel a Surge of State Community Banking Associations
By Jack Hopkins Several state community banking associations in the Great Lakes region and beyond have celebrated 50th anniversaries this year and in 2023, pointing to an outbreak of industry organization a half-century ago. While the formation of these state associations in the mid-1970s was part of a debate over banking policy that lasted years,…
Great Lake Banker Magazine
Community Banking and Risk Premia
By Corey Chambas As a fundamental economic principle, there is typically a fair trade-off between risk and return. In the investment world, where risks are taken on various asset classes, risk premia are the returns received above the risk-free rate earned in exchange for taking that risk. Where there are sufficient buyers and sellers of…
Navigating the Green Frontier: The Challenges and Opportunities of Cannabis Lending
By Alex Leonowicz From an outsider’s perspective, the cannabis industry can look rosy. For instance, the state of Michigan is on pace to hit a record ‘high’ $3.2B in overall sales in 2024, highways are littered with cannabis billboards and many dispensaries still have lines out the door. The industry is massive. But, a closer…
Cybersecurity and AI — What Community Banks Should Know
By Steve Sanders Artificial intelligence (AI) has dominated headlines and conversations over the last year, with various industries exploring what this technology means for automation, collaboration, communication and more. However, new challenges come with those opportunities to streamline processes, particularly in cybersecurity. Banks should know the following perils and tips to minimize risk when incorporating…
Doing Your Homework: Why Online Reviews Matter for Banking Decisions
By Corey Wrinn Why ask one person for a recommendation when you have the wisdom of millions at your fingertips? Online reviews have become a crucial factor in shaping consumer decisions across various industries, including the banking sector. The influence of these crowdsourced opinions is undeniable, as consumers increasingly seek transparency and authenticity in their…
How CFPB’s Rule 1033 Could Affect Data Rights and Open Banking
By Bradley Wallace The Consumer Financial Protection Bureau (CFPB) estimates that 100 million consumers have authorized third parties to access their data. That data drives endless business decisions and capabilities. But financial institutions and technology developers must also be aware of regulations regarding consumers and their rights over their data. One such proposed regulation, Rule…
Better Together – Part II
By Bill Pilkington In Part One (Great Lakes Banker, June 2024, page 28), I presented facts that led to the carnage that was the “Great Recession” beginning about 2007. Our free market economy has demonstrated an economic check generally every 10-12 years. For purposes of our discussion, I will use the “standard” definition of recession…two…
The Rise of Payments Hubs in Community Banking
By Kristen Jason and Mark Majeske Instant payments represent an opportunity for community banks to meet the ever-growing demands of their customers. However, they have to first think about how they will connect. One such solution that has gained significant traction is the adoption of payments hubs. To explore this trend and its implications for…
Adapting to Serve: Leveraging Technology to Connect with Financially Underserved Customers
By Brad Tompkins In April, the Federal Deposit Insurance Corp. (FDIC) unveiled a revised economic inclusion plan aiming to advance financial stability by encouraging lending in underserved communities. According to the FDIC website, the second stage of this plan is building household financial stability, specifically by increasing the percentage of households that have access to…
Loan Participations Plant the Seeds for Lending Growth
By Peter Glick When one of your best customers approaches your community bank about a new loan, ideally, you would always be able to say yes. Regulations, however, set limits on how much funding lenders can provide borrowers. Community banks have options however to meet these regulatory requirements and still meet the needs of their…