Guest Commentary By Steve Kinner, Senior Managing Director, IntraFi Network
3 Tips for
Bank Leaders Environment
In the meantime, many are trying to figure out how to position their institutions for the future.
In a recent webinar, I spoke with Darling Consulting Group President Matt Pieniazek and Abrigo Managing Director Dave Koch about how bank leaders can still capitalize on the current environment.
While we discussed an array of topics — from the need to reimagine what asset-liability committees can and should be to the importance of thinking differently about pricing — my top three takeaways from our conversation follow.
At the start of the pandemic, deposits at some banks swelled by as much as 20%. Today, excess liquidity remains a concern. However, it was just a little over a year ago that many banks had high loan-to-deposit ratios and were wondering where their next dollar would come from.
Bank leaders can think of their balance sheets as two separate financial statements: a traditional balance sheet and a COVID balance sheet comprised of assets and liabilities from new customers.
Hidden in those latter financial statements, one
... bank leaders can bolster their institutions for years to come by taking steps to develop strong, lasting relationships with new customers today.
layer below the numbers, is a huge opportunity. Given the correlation between core deposits and franchise value, bank leaders can bolster their institutions for years to come by taking steps to develop strong, lasting relationships with new customers today.
Sure, those customers could withdraw their funds as soon as the economy improves. But even if they do, banks will be closer to winning their loyalty than they were before. During periods of financial or economic hardship, people have a
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