Branch banking

Large and regional banks are not only slashing overdraft fees, they’re introducing small-dollar loans to help customers cope with income shortfalls. The policy changes made recently by just five banks could save consumers as much as $2 billion a year, according to a new analysis.

When big banks trim their branch networks, community banks operating in the same markets see a chance to pounce.

A $28 billion agreement with the National Community Reinvestment Coalition could help win regulatory approval for the acquisition of Michigan-based Flagstar Bancorp. The deal was originally expected to close last year.

The number of U.S. bank branches dropped by a record 2,927 last year as lenders both large and small sought ways to cut costs and keep pace with a digital transformation sweeping the finance industry.

The branches will provide services in clients’ preferred languages and employ local residents. Executives say the strategy will help M&T pull in new customers at a time when nonwhite populations are expanding.

The last three months of 2021 were strong for most lenders, which will report results soon. But the outlook for the coming months has been clouded by the spread of the newest coronavirus variant, which has many banks grappling with staffing shortages and branch restrictions.

Branches across the country have closed temporarily, or switched to drive-thru service, as infections and quarantine rules have forced many bank workers to stay home.

First Premier Bank in South Dakota revamped its online sign-up process to allow customers to name the banker who referred them. This helps bankers overcome their reluctance about digital accounts and lets them start relationships with new customers.

The $6.7 billion-asset Byline Bancorp plans to invest most of the savings into digital banking.

A new survey of industry executives finds substantial interest in cryptocurrencies and mergers but anxiety about competition from large technology companies.

For the third time since the start of the pandemic, the Richmond, Virginia, company will close branches to contain costs in what it calls a “challenging macroeconomic environment.”

The Georgia bank estimates that it will save $12 million annually by shutting down 40 branches.

Hiring fewer front-line workers but paying them more could improve customer experiences, strengthen employee retention and reduce stress for managers.

The new omicron strain is prompting more financial institutions to extend mask mandates in the workplace and remote work schedules.

Bankers say they're putting up with behavior from entry-level workers that never would have been tolerated in the past because it's so hard to fill positions. Those compromises can undermine corporate culture.

Even as the pandemic has hastened adoption of digital banking, industry officials say branches remain vital points of contact with consumers.

Digital upstarts like Square, Stripe and PayPal are invading community banks' turf by appealing to local merchants with a mix of electronic payments and lending. Small banks are fighting back by leaning into digital services while maintaining their personal touch.

The new ATMs deter card-skimming fraud through encryption, individually paired card readers and a design that requires users to dip their cards at an angle.

Bank of Montreal plans to raise its minimum wage for U.S. branch and contact-center employees to $18 an hour as companies face heightened competition for workers in a tight labor market.

The account, which is similar to those offered by numerous other banks and credit unions, has been certified as meeting certain affordability criteria for low-income people.