A recent Forrester benchmarking study examined mobile offerings for retail customers of various banks and found that many of their mobile apps lacked functions that would not require a large investment by the banks to implement. Minor functions such as the ability to search for items within an app or the ability to sort transactions are often overlooked, which can hinder a user’s experience. For community banks, which don’t have the budgets of their larger counterparts to spend on digital upgrades, Forrester’s advice is particularly relevant.
Businesses and governments are going cashless. But one significant portion of the population is getting left out of this transition: people who lack access to traditional financial services like bank accounts and credit cards. Nationally, about 7.7% of people are unbanked; another 20% are underbanked. Anti-poverty advocates say the change is problematic for low-income people, but they disagree on how to solve it.
Legacy Bank & Trust of Rogersville, Missouri has agreed to purchase Financial Enterprises Inc., the holding company of First National Bank of Clinton. Through the deal, Legacy will gain access to Clinton’s three branches and $70 million in assets. “Coming from a family-owned institution for over 120 years, I feel confident that we understand and appreciate the relationships built by First National Bank of Clinton, which has been family owned for nearly 50 years,” said Legacy Bank & Trust Chairman Chris Harlin. “It was this mutual admiration that made this venture possible.”
WBUR Radio Boston recently interviewed Teri Williams, president and CEO of OneUnited Bank. She discussed the discrepancies between black and white homeownership in Boston, elaborating on issues of eligibility and describing her company’s involvement with the ONE Mortgage Program that is offered in Boston for first-time homebuyers. Through this program, OneUnited has partnered with MA-based nonprofit housing organizations to help close the eligibility gap.
Oliver Wyman provides critical insight on non-financial payment reporting data or “alternative data”, which can improve access to credit for millions of Americans by overcoming two key limitations of today’s best lending practices and enhancing the accuracy of existing credit scores.
Tucked away in the last month’s regulatory form report by the Treasury Department was a nascent effort to reform the way regulators implement the Community Reinvestment Act (CRA). The CRA, a law intended to compel banks to offer loans and financial services to low- and moderate- income areas, has been criticized by community groups as out of step with modern banking practices. The report said that regulators need to “better align the benefits arising from banks’ CRA investments with the interest and needs of the communities they serve.”
Amidst soaring housing costs, the Bay Area has a well-documented shortage of affordable homes. The East Bay Asian Local Development Corporation (EBALDC) has recently launched the new Oakland Healthy Neighborhoods Fund, whose investors will purchase apartment buildings at risk of converting to higher rents and then restrict rent increases for eligible low- and moderate-income residents. Beneficial State Bank is one of several CDFIs and nonprofit organizations partnering with EBALDC to ensure that these renters can stay in their homes.
The Consumer Financial Protection Bureau (CFPB) recently announced the appointment of new consumer experts from outside the federal government to the Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council; the four bodies will provide advice to CFPB leadership on a broad range of consumer financial issues. Among the new appointees to the Community Bank Advisory Council is Max Yates, Senior Executive Vice President and Chief Risk Officer of BankPlus in Ridgeland, Mississippi. Yates is a member of the CDBA Board of Directors.
A recent survey of 219 US banks conducted by the American Bankers Association found that 87% do not have a formal payments strategy. 70% do not analyze payments data to gain insights into customer behavior. New payment technologies such as digital currencies, person-to-person payment apps, real-time payments, and mobile wallets threaten to erode the indispensable role that small banks have long played in their customers’ lives. There are certain steps that small banks should take to better position themselves for the payments revolution.
Vernon, Alabama is just a dozen miles from Caledonia, Mississippi, but the Bank of Vernon took 11 years to cover that distance. On June 28th, representatives and officials gathered at the ceremonial opening of the bank’s new branch in Caledonia’s primary retail area. The tiny town of 1,100 residents has been without a bank branch for 15 years, but it is growing steadily. “We’ve got some great plans for the area, and we appreciate the support of the people of Caledonia,” said Bank of Vernon CEO Andy Johnson.