'Banks Don't Rush, They Sneak': Comments of the Week
January 23, 2015 12:01 PM
American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.
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On why U.S. banks will hold off on establishing correspondent banking relationships in Cuba despite loosened travel and trade restrictions:
"Banks don't rush, they sneak."
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On whether arbitration is a preferable alternative to litigation:
"From a practical standpoint, arbitration often does not produce its intended impact, that of a streamlined and ostensibly less expensive resolution process
. In my personal experience as a community bank CEO, arbitration between community banks and bank borrowers often results in both sides retaining counsel followed by document discovery and even depositions. All of this preparation (at high $/hour) is reportedly necessary so counsel can make an informed and impactful presentation to the arbitrator. That sounds like (and costs just as much as) prepping for and participating in a non-jury trial."
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In response to BBVA Ventures' claim that it invested in Bitcoin wallet provider Coinbase because of its interest in blockchain technology, as opposed to digital currency:
"#Bitcoin is a part of, and inseparable from, the tech." (via Twitter )
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On whether community banks' failure to stay abreast of advancements in technology will be their downfall:
"While community banks may not be on the bleeding edge, they are certainly on the leading edge and are often more nimble and innovative than their megabank brethren. The fact that there are 2,719 community bank charters over 100 years old says that community bankers are adapting and evolving in sync with their customers. The day that banks myopically focus on specific delivery systems instead of their customers' needs is the day they go the way of the buggy whip maker and not before."
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On whether community banks' technological offerings match consumers' expectations:
"The technology gap between the national/super-regional banks and community banks and credit unions is growing at an exponentially increasing rate. The legacy core banking systems were built before the Internet was even a consideration. Digital banking and customer's expectations increase every day and community banks and credit unions are struggling to develop a digital banking strategy, let alone an implementation plan."
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On whether banks will try to bury the Volcker Rule entirely now that the Federal Reserve has given them an extra two years to shed investments in hedge funds and private equity:
"For bank lobbyists, changing or delaying the Volcker Rule is a top priority. Lots of $$$ involved." (via Twitter )
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Image: Bloomberg News
