'The Pace of Start-Ups Is Practically Zero': Comments of the Week
May 9, 2014 7:30 AM
American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the comments sections of AmericanBanker.com articles and from our social media platforms.
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On a House bill that aims to lessen banks' anxieties about partnering with money-transfer firms they perceive as high-risk:
"Something is really wrong in a society when compliance risk avoidance is more important than life." (via Twitter )
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On the difficulties Somali-Americans face in sending remittances to friends and relatives in their home country:
"Obviously makes one think of #Bitcoin as possible solution." (via Twitter )
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On former B of A executives Ken Lewis and Joe Price, who recently reached settlements with New York Attorney General Eric Schneiderman:
"They left their successors with a badly wounded company bereft of qualified managers and dragged down by legacy assets acquired in many ill-conceived deals. They are on the golf course now with millions in the bank and no penalty other than a sullied reputation."
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On whether customers will leave if banks stop offering free checking:
"If some of the more desired (and costly to the bank) 'free' services being provided make certain customer relationships unprofitable
Well, wouldn't those customers leaving be a financial plus? How hard should we fight to keep unprofitable relationships?"
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On the plight of the low-paid bank teller:
"For the employee, work to enhance your job skills because the teller job is bound for extinction as customers migrate to mobile and other self-service solutions. Unfortunately, most banks have eliminated robust training programs to help employees map a career path so the employee must find a way to keep themselves employable."
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On whether banks can convince checking customers to pay for added-value services:
"It seems a stretch to think that consumers who have been conditioned to receiving free banking services will be keen to pay fees in return for bundled identity theft protection or cell phone insurance. Do they value those services so highly that they would view the bundle favorably?"
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On pressure for the Federal Reserve to tailor capital requirements for nonbanks:
"It is not difficult to understand that a Federal Reserve that has trouble tailoring regulations so that they differentiate between multi-billion dollar financial behemoths and multi-million dollar community banks would also have trouble tailoring regulations to differentiate between multi-billion dollar banks and insurance companies. But it is critically important to understand the difference between being unable and being unwilling."
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On consolidation among small banks:
"While the rate of consolidation has not changed, the pace of start-ups is practically zero. That is where the cost burden will continue to decrease the number of banks overall."
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On how banks can prepare for cyberattacks:
"Despite the best defense, data will be compromised, and preparing a shelf-ready communication plan in advance should now be viewed as a fiduciary responsibility for all banks."
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On how community bank mergers and sales affect employees:
"Consolidations almost always mean significant job reductions for one or both parties."
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On the fairness of mandatory arbitration:
"The arbitration forums are generally controlled by corporate interests. The rules and system are designed to make it more difficult for consumers to receive justice."
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