A new study by ICBA and The Center for Generational Kinetics took an in-depth look at millennials and their banking behavior. This generation is of special importance to the banking industry, especially community banks, as it encompasses 80 million Americans ages 19-37 years old who are currently or will soon make important banking decisions and establish long-term habits. How can you capitalize on this?
Survey findings show that millennials are the most entrepreneurial generation to date with nearly 40 percent planning to start a business in the next two years. And they’re going to need a small business loan. The best part? These millennials want banks that don’t treat them like a number, find it important to have a personal relationship with customers and are locally owned. According to findings, below are recommendations to ensure community banks attract and retain millennial customers:
- Make millennial customers feel like VIPs.
- Adapt to millennials’ communication profile (think visual as in computer/tablet screens and embrace social media).
- Create an entrepreneur advisory board.
Additionally, the survey uncovered that millennials require an online banking option and they’re not as interested in the number of ATMs as many don’t carry more than $5 on them at any given time. More information about millennials’ banking habits can be found in this recent story.
Congressman Randy Neugebauer will receive the IBAT Trailblazer Award at a luncheon in Lubbock today.
The Trailblazer Award, which celebrates its 17th anniversary this year, provides special recognition to an elected official who is especially supportive of the independent community banking industry. Nominees must be a state or federal legislator, support and exemplify the entrepreneurial spirit of Texas, and exhibit the courage and independent spirit of Texas community bankers.
Neugebauer is a key member of the House Committee on Financial Services, chairing the Subcommittee on Housing and Insurance. He has been a tireless advocate for causes of importance to community banks and small businesses, especially in the wake of Dodd-Frank. In an opening statement given during a committee meeting on the four year anniversary of Dodd-Frank, Neugebauer summed up his estimation of the law’s legacy and impact, saying, “Regulatory burdens [brought about by Dodd-Frank] have an enormous impact on the health of our economy and have introduced a new type of risk to our economy called regulatory risk.”
“Randy ‘gets it.’ He understands our business and the challenges we face, and more importantly has a terrific grasp on the importance of community banking not only to our economy on a micro and macro basis, but the role we play in fulfilling the hopes and dreams of our customers,” said Steve Scurlock, Executive Vice President of IBAT. “The community banking industry and the constituents of Congressional District 19 are blessed to have this gentleman serving in Congress.”
The general election is underway. Early voting started yesterday, October 20, and runs through Friday, October 31. Election day is Tuesday, November 4.
You can easily access early voting and election day polling locations, as well as sample ballots, by going to your County Clerk's website, or find information here for a number of counties in Texas.
The IBAT PAC and IBAT FedPAC have been active this election cycle, thanks to the generous support of you and your community banking colleagues. We have historically followed the "friendly incumbent rule," and have supported candidates with whom we've worked and established relationships. We have compiled a complete list of those candidates to whom our PACs have contributed.
We also frequently get questions regarding judicial races from our members. We have a longstanding relationship with The Texas Civil Justice League (TCJL), one of the leading tort reform groups in Texas. TCJL endorses judicial candidates, and we encourage you to take a look at their recommendations in these races.
Please feel free to call or email if you have any questions or comments, and please vote and encourage those in your circle of influence to do the same.
Due to the popularity of Dell's September discount for IBAT members, the 40% off all Latitude computers deal has been extended for the month of October! Whether you're in the market for a new computer or anything else from Dell, remember that IBAT members save an average of 31% on their orders from Dell.
Visit Dell's website or contact Bryan Horten, IBAT’s Strategic Account Manager, at 512-942-9120 to order. For the best price, remember to use the coupon codes below, as well as IBAT member ID link GS126658178, when placing your order. The offer is valid for IBAT member banks and bank employees. Please pass on this email, or download the flyer and post it somewhere in the bank where everyone can see it.
There are three ways to order:
- Visit Dell's IBAT member website;
- Call 1-800-757-8442 and mention IBAT members link #GS126658178; or
- For orders of more than 5 units, call Bryan Horten, IBAT's Strategic Account Manager, at 512-942-9120.
Staff contact: Curt Nelson, firstname.lastname@example.org, 512-275-2240
Did you know? IBAT, in conjunction with Financial Education, Inc., hosts close to 150 webinars a year. Webinars are a very economical way to train your staff for one low price. Everyone can sit in on the program with the use of a speakerphone and a computer, or access archived webinars on-demand.
Topics are broken up by category or by date and include:
You can access a complete listing of upcoming webinars and archived webinars here.
IBAT would like to congratulate Bank Texas Quitman on celebrating 100 years as a nationally chartered bank. Bank Texas has been an IBAT member since 1978!
The celebration will take place on Monday, October 20, 2014, with a reception from 1:30-3:30. Presentations will be at the beginning on the program.
From the flight deck: “The Captain has turned on the fasten-seat-belts sign. There could be some turbulence ahead.” Ya’ think? Volatility has been this week’s predominant theme for both credit and equity markets as a variety of factors have triggered massive rallies and sell-offs and then more rallies followed by the inevitable sell-off before rallying again. All of this back and forth resulted, at one point, in a yield below 2% for the Benchmark Ten Year Treasury Note during Thursday’s big rally. That, of course, was before this morning’s sell-off backed it up to around 2.20%. Well, 2.21%.
Congratulations to S. Boyce Brown, Chairman, President and Chief Executive Officer of Extraco Corporation in Waco, for being named to the Federal Reserve Board’s Community Depository Institutions Advisory Council (CDIAC).
CDIAC advises the Board on the economy, lending conditions and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member of each of the Reserve Bank councils serves on CDIAC, which meets twice a year with the Federal Reserve Board in Washington.
“The Fed has been responsive to a number of our concerns over the past several years, and we believe this Council plays a significant role in clarifying the impact of regulatory burden on community banks,” said Steve Scurlock, IBAT Executive Vice President. “Boyce brings much to the table, and he will provide the Fed Board of Governors and senior regulatory officials with a terrific perspective of the real world of main street community banking.”
Last week, we hit the highlights of IBAT’s 40th Annual Convention and provided a link to photos online. However, we’d be remiss if we didn’t take a moment to say “thank you” to IBAT members who supported the IBAT PAC via participation in the auction and other PAC activities at the convention.
Together we raised more than $124,000 to support IBAT’s political action activities. When paired with the 90 banks and six associate members that held PAC drives among their employees this year, we have raised more than $360,000 in 2014. Also, 124 banks contributed to the legislative fund drive, which raised an additional $160,000.
Of particular note, IBAT thanks the members of the Leadership Division Board of Directors who spearheaded the PAC fundraising efforts in their regions and at convention.
Finally, congratulations to Jared Curtis of Citizens National Bank in Henderson, the winner of IBAT’s 2014 Dream Vacation contest.
The Bank Lending Institute (BLI)™ leads the field in preparing community bankers for banking in the 21st Century. Guided by the industry’s top regulators and banking professionals, BLI gives community bank lenders the tools necessary to serve their customers while effectively managing their institution’s risk and enhancing its profitability. Here the emphasis is on practical, real-world issues and solutions. During the first year, BLI takes students through the “nuts and bolts” of lending offering techniques to better understand the borrower and his needs. The second year builds on that knowledge base by covering specific types of lending. It helps elevate lenders to a new level of strategic thinking and presentation.
Last week, the Consumer Financial Protection Bureau (CFPB) released its updated Readiness Guide for mortgage rules to include information on the new TILA-RESPA integrated disclosure rule. The guide is intended to help banks evaluate their readiness for complying with the mortgage rule changes.
The TILA-RESPA integrated disclosure rule is effective for transactions in which the creditor receives an application on or after August 1, 2015. The Bureau has an entire page of resources dedicated to the implementation of the rules, which includes:
If your team needs more information on compliance with new CFPB mortgage rules, the FDIC is hosting a free teleconference on October 22 to help bankers better understand ability to repay/qualified mortgage rules, as well as loan originator compensation rules.
In a comment letter filed with the Federal Housing Finance Agency late last month, IBAT called upon the agency to abandon a proposed requirement that each member of a Federal Home Loan Bank (FHLB) maintain at least 1% of its assets in long-term home mortgage loans and at least 10% of its assets in residential mortgage loans. The comment period, which had an original deadline of November 12, 2014, has been extended to January 12, 2015.
The letter, drafted by IBAT President and CEO Chris Williston, points to the onerous mortgage rules promulgated by the Consumer Financial Protection Bureau (CFPB) earlier this year, which have resulted in reduced mortgage lending activity by many community banks. Williston expressed concern that the CFPB rules, coupled with new threshold requirements for FHLB membership, “could disqualify many [community] banks.”
IBAT members are encouraged to use our letter as a guide in drafting your own response to the proposed rule. As always, it is also recommended that you include specific information regarding the potential impact on your bank in your comment letter. Please use this extension as an opportunity to share your thoughts about the proposed rule.
Several Leadership Division regions are hosting events that will cover a variety of important industry topics in the coming weeks. We encourage you to register for an event in your region, or join your peers in other regions for learning and networking opportunities.
Upcoming events include:
- LD Region 5: 10 Absolute Must-Have Strategies for Community Banks (Mount Pleasant)
- LD Region 5: 10 Absolute Must-Have Strategies for Community Banks (Longview)
- LD Region 2: Trailblazer Award Luncheon (Lubbock)
- LD Regions 3 & 4 - DFW Golf Tournament (Irving)
- LD Region 8: 10 Absolute Must-Have Strategies for Community Banks (Austin)
- LD Region 9: Legislative Update at St. Arnold's Brewery (Houston)