June 21, 2017


 
Contents:
Lawmakers Urge Community Bank Exemption from Small-Biz Reporting
Banking Lawyer to Lead FDIC
Guide for August Congressional Meetings
Lawmakers Revisiting Flood Insurance, Reg Relief
Being a 'Digital Bank' Goes Beyond a Pretty App



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A bipartisan group of 72 members of Congress called on the Consumer Financial Protection Bureau to exempt community banks from upcoming regulations on small-business loans.

In a joint letter to CFPB Director Richard Cordray, the coalition said the data-collection and -reporting requirements under Section 1071 of the Dodd-Frank Act threaten to undermine community bank lending and decrease access to credit.

The CFPB, which last month launched an inquiry
on small-business reporting in its first step toward a rulemaking, has authority to exempt community banks.

Rep. Robert Pittenger (R-N.C is expected to reintroduce his repeal soon.

See the letter....  
President Trump will nominate James Clinger to serve as FDIC chairman. According to the White House, Clinger will be nominated first to fill the long-vacant director position on the FDIC board and then nominated to serve a five-year term as chairman after Martin Gruenberg's term ends in November.

Clinger has been chief counsel to the House Financial Services Committee for a decade. During the George W. Bush administration, he served as a deputy assistant attorney general, prior to which he was a staffer on the Financial Services Committee for another decade. He began his legal career in private practice.

The announcement comes as Trump continues to fill out his financial regulatory team. The president recently announced that he would name Joseph Otting as comptroller of the currency. There are several vacancies on the Federal Reserve Board of Governors, and nominees are expected to be named soon for at least one of those posts.
To maximize community banking grassroots efforts during the August congressional recess, ICBA released the "Meeting on Main Street: Host Your Legislators at Your Community Bank" guide.

The guide provides a step-by-step process on scheduling, conducting and promoting in-district meetings with members of Congress, including community bank visits by lawmakers and staff. The guide also offers social media tips and a sample letter to request a meeting or bank visit.

Hosting members of Congress at your bank is an excellent opportunity to educate lawmakers about the unique and important role of community banking in local communities across the nation.

For more information, contact ICBA Director of Advocacy Joshua Habursky at [email protected] or 202-821-4355. 

Download The Guide....  
The House Financial Services Committee is scheduled to resume its markup of flood insurance legislation. The committee last week passed two bills to reauthorize and reform the National Flood Insurance Program. Five remain on the docket for Wednesday, including legislation with a provision to remove the NFIP mandatory purchase requirement for commercial properties.

Also this week, the Senate Banking Committee is scheduled to meet Thursday for another hearing on regulatory relief. This hearing will feature testimony from financial regulators, including FDIC Chairman Martin Gruenberg, Acting Comptroller of the Currency Keith Noreika and Federal Reserve Board Governor Jerome Powell.  
The benefits of becoming a 'digital bank' include the potential to boost revenues per customer by more than 50%, increase customer penetration by more than 30% and reduce operating costs by up to 20%.

by Jim Marous, Co-Publisher of The Financial Brand and Owner/Publisher of the Digital Banking Report

The impact of digital technologies on customer satisfaction became apparent in the most recent JD Power Customer Satisfaction survey, where the largest and most digitally-focused banks scored highest in online, mobile and ATM satisfaction. These digital ratings allowed the six largest banks (Bank of America, Citigroup, JPMorgan Chase, PNC Financial, U.S. Bancorp and Wells Fargo) to take the lead in overall customer satisfaction for the first time ever.

But becoming a 'digital bank' goes well beyond just what meets the customer's eyes and fingers. To deliver the experience expected, a banking organization must leverage big data, new technologies, advanced analytics, a 360-degree view of the customer and personalized engagement. "It isn't enough for banks to woo customers with nice-looking apps concealing patched-together systems. For innovation to translate into customer satisfaction, banks need to master the bare necessities," says Ben Robinson, Chief Marketing Officer of Temenos. 

Becoming a Digital Bank
Becoming a digital bank can transform a traditional banking organization from being a reactive product provider to being a proactive financial advisor. By developing a digital stack that operates in real-time, with the contextual engagement and the interests of the customer placed at the forefront, financial organizations can combine home grown services with those offered by outside organizations. By definition, digital banks will be more agile and instantly responsive, increasing revenue opportunities and decreasing costs.

According to the Temenos report, Digital Banking, "A digital bank offers customers contextualized, seamless experiences that transform the customer journey. And becoming a digital bank means delivering a compelling and relevant customer experience through an open, integrated and flexible architecture." In short, Temenos believes a digital banking solution provides:
  • Anytime, anyplace, any channel banking: Banking on the customer's terms.
  • Banking beyond the borders: More than just traditional products, using customer data to become a virtual advisor.
  • Contextuality: Using customer insights and advanced analytics to proactively provide personalized solutions.
Beyond a Pretty App
Early investments in providing better digital banking apps has resulted in a shift in customer channel preferences. In fact, the 2016 CapGemini World Banking Report found that 33% of customer interactions were digital in 2016 (vs. 22% in 2014). Unfortunately, not updating core systems has resulted in more complex back offices and an inability to provide a seamless, real-time digital experience overall. The fact that 87% of organizations do not believe their core systems can keep pace has resulted in 80% telling a Finextra study that they hope to replace their core systems in the next 5 years.

Learn More....  


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