Welcome to the Summer 2018 issue of the Novantas Review.
We are all looking forward to some pool time and burgers on the grill, but we are also looking to the future. And there’s a lot that bank executives must do to prepare for it. As uncertain as the future always is, there are a few things we can count on. Deposit betas are rising, competition is ferocious, and technology is changing the world faster than we ever expected.
In this issue, we tackle some key topics that you will face as you look to the future of banking. We guide you through some strategic choices that you will likely have to make, such as developing a thin-branch network or launching a direct bank. We also examine the significant amount of churn that will hit your workforce and provide guidance about figuring out which deposit customers are most valuable to you.
We are also introducing another new feature as part of the Review’s overhaul. “Deep Dive” will analyze timely financial topics for the banking industry. In this issue, we explore the widening LIBOR-OIS spread — from why it is happening to what it means for your business.
As always, we welcome your feedback on the Novantas Review. Feel free to reach out to Robin Sidel at firstname.lastname@example.org with suggestions and comments.
So put on some sunscreen and start reading!
The U.S. banking industry has always followed a very simple formula: Intermediation 101 calls for banks to gather deposits from local depositors (primarily retail) and lend to local borrowers (primarily businesses).
The Novantas Review is pleased to introduce a new feature in which we interview an expert about the banking industry.
Much of the buzz about real-time payments innovation has focused on retail banking, but the new technology has broad implications for commercial businesses as well.
Although regulator-driven at the outset, quantitative thinking is now firmly in the DNA of many banks. As a result, many are struggling to manage hundreds of models that require an increasing number of resources.
It’s no secret that the need for low-cost, sticky deposits is one of the most pressing issues in the industry today, particularly as interest rates are set to keep rising. The use of deposit scoring can help banks identify which customers they want to keep — and the best ways to keep them.
The LIBOR-OIS (London interbank offer rate-overnight index swap) spread has widened dramatically this year, prompting speculation that the next crisis is on the horizon.
As consumers spend less time in branches and increasingly turn to non-bank providers for day-to-day cash management, banks must stay relevant by tapping into the emotional and financial needs of their customers.
As consumers change the way they approach their banking needs, institutions must make some tough decisions about how to staff branches and manage other parts of the workforce.
Authenticity. Story-telling. Distinctiveness. Credibility. Those are some of the goals for top bank marketing executives who attended a “Pragmatic Marketing Leadership” forum that Novantas recently hosted in San Antonio.
Novantas recently hosted a two-day roundtable in Charlotte for bank chief financial officers and other finance executives to tackle issues of valuation, risk and revenue.