FICO vs. VantageScore: An important debate over how to expand access to mortgage credit took center stage on BankThink this week. Debra Still, president and CEO of Pulte Financial Services, proposed that new credit-scoring models, like one from VantageScore that captures data so old it would normally be ignored, could help the problem without weakening underwriting parameters. As the housing market gets back on track, credit is too tight and
Big Data, Not Big Brother: The data-driven economy stands at a crossroads, according to Craig Boundy, chief executive of information services firm Experian North America. As more information becomes widely available and useful to everything from the way we run our businesses to the way we treat medical patients to the way we browse the Internet privacy and security risks become more prominent. Boundy argues that
The Science of Cost-Cutting: Most banks keep tabs on things like the number of transactions that tellers process at each branch and how many deposit accounts they open or close. But these kind of basic cost-cutting calculations aren't so helpful when it comes to decision-making about operations and staffing, says Lynn David, president of Community Bank Consulting Services. Banks need to keep a lid on personnel-related expenses, and could do so more efficiently
Regulators in Denial: "It is a fool's errand to try to limit the uncontrollable damage of a Too Big to Fail failure," says banking industry consultant and investor J.V. Rizzi. He thinks that TBTF institutions should either be broken up entirely or we must accept the need for a taxpayer-funded bailout. Recently, the FDIC and Richmond Federal Reserve asserted that Dodd-Frank's legal provisions reduce the risk of another taxpayer-funded bailout substantially, but he calls the law's living wills and orderly liquidation authority "
Branch of the Future (Not an Oxymoron): No industry is immune to evolution, but evolution doesn't have to mean elimination. Customers might travel to physical branches less often to do basic transactions they have mobile banking for that now. Nevertheless, Financial Supermarkets executive vice president and chief development officer Dave Martin says
Facing Facebook: Banking isn't the only industry shaken up by mobile communication. Newspapers have been through the same struggle; publications like The New York Times, NBC News, and National Geographic are accessible to readers through a Facebook service called Instant Articles. Kevin Tynan, a community bank chief marketing officer explores three ways Facebook could break into the banking industry. It could offer financial services through a shopping mall app on its platform, not to sell financial products, but to manage online traffic and lease space to partners. He also floats the idea of a boutique retail bank and, in what he admits is a much less likely direction, a full service bank.
Faster Payments: Nacha's plan for same-day payments has big improvements to offer B2B transactions, but banks still stand to
The Merits of 'Mission': Most banks are interchangeable to the average consumer but a recent survey shows community development financial institutions have greater employee diversity and are more committed to lending in low- and moderate-income communities. Saurabh Narain, president and chief executive of National Community Investment Fund, makes the case for
Summer Reminder: With the onset of beach book season, it's almost time for American Banker's annual
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