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May
11
2016

Insider Threats to Financial Institutions: How To Set Up Protection You Can Bank On

By Greg Cullison

No matter the size, all financial institutions are at risk of harm at the hand of their own employees.

In a banking environment, your most valuable assets can no longer be sufficiently protected by spinning the dial on a vault. Money itself is only the tip of the iceberg in terms of assets that must be defended from theft or fraud; consider the value of all the bank's data, including customer account information, personnel data, audit reports, and other proprietary organizational data that could prove catastrophic if stolen and/or leaked publicly.

So how do you mitigate the risk of insider threat at your bank?

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Feb
10
2016

Why Are You Handing Underpaid and Disgruntled Workers Keys to The Vault?

By April Resnick


Last week, the New York Times published an article on the growing threat posed by bank tellers and managers who abuse their access to banking data for criminal purposes, including stealing funds and identity theft. The issue is described as a "rampant problem", with the Manhattan prosecutor's office estimating it brings "at least one case against a teller per month." There is a solution to this problem, but it's probably not what you would expect.

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Nov
18
2014

3 Tactics To Make Your Bank Acquisition Worth Your While

By Michael Deely

The processes of bank mergers and acquisitions (M&A) are complex, with a long number of intricate steps that all must be completed correctly or the deal doesn’t go through.

However, the high risk also comes with high reward: A bank acquisition (whether you’re the purchaser or the target) has the ability to dramatically increase your level of business – and your profit margin.

Amidst all the paperwork, counteroffers and legal logistics, it’s easy to forget the basic principles, practices, benefits and dangers of making the merger or acquisition worth your while as a middle-market banker and as a business leader.

Before diving into more in-depth, advanced strategies, you need to remember three basic tactics to ensure your efforts aren’t wasted in your next middle-market bank acquisition or merger:

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Nov
11
2014

Profit Or Loss? The Difference Is Customer Lifetime Value

By Michael Deely

Keeping your bank profitable is a top priority for every member of your staff, whether you’re running a retail bank or catering to B2B customers. However, no matter your target customer base, determining the profit – or loss – potential of each client is essential if you’re looking to keep your bottom line healthy.

In the first post of this series, we covered the importance of a customer profitability analysis for retail banks, and last week, we covered customer profitability analysis for business banking customers. Today, we’ll address the calculation of customer lifetime value – and why your middle-market bank can’t afford to ignore this critical metric.

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Nov
04
2014

48% Of Your Bank’s Customers Are Eroding Your Profitability

By Michael Deely

While attracting and retaining customers for your retail bank is certainly a difficult task, doing the same for B2B customers is an even more arduous challenge – especially when it comes to customer profitability.

In last week’s blog post, we covered the importance of a customer profitability analysis for retail banks, and next week, we’ll cover the calculation of customer lifetime value. Today, we’ll cover customer profitability analysis for business banking customers.

The Fickle SMB Market For Business Banking

Middle-market banks in search of growth consistently target small- and medium-sized businesses (SMBs). Indeed, the SMB segment offers tremendous profit and growth potential since it’s perfectly aligned with the regional nature of middle-market and community banks.

SMBs account for more than 90 percent of companies across the country and, after some contraction during the latest recession, they are growing once again. In the United States alone, there are 8 million small businesses (those with sales between $100,000 and $10 million) and 160,000 medium-sized businesses (those with sales between $10 million and $500 million).

However, as many banks have discovered, SMB customers are more difficult to attract, retain and serve. One particular challenge for many banks is to match the needs of small business customers while still ensuring customer profitability. But by far the most difficult challenge is customer retention.

B2B banking customers are often more fickle than retail consumers because they’re motivated primarily by price. In fact, according to Barlow Research, almost 20% of small business customers are at risk of switching banks in the next year, and even more concerning: 48% of small businesses (and 42% of medium-sized businesses) report that they will use another bank for their next banking product purchase.

With so much business at stake for your bank, you need a thorough customer profitability analysis to ensure you’re maximizing your bottom-line growth.

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