ABA Banking Journal Podcast

Bankers today require a broader understanding of technology issues, especially cybersecurity, while also needing deep grounding in core leadership principles, says former bank executive and current business school teacher Greg Smith. “We need to make sure our team members, our employees, have the tools to do the right thing,” he says, adding that many cyber threats do not remain only at the enterprise level. “So much of our vulnerability is at that individual employee level.”

On this bonus episode of the ABA Banking Journal Podcast, two members of the ABA Foundation team -- Sam Kunjukunju and Jeni Pastier -- join to discuss ABA's 2019 financial education programs, which are now open for registration. Kunjukunju and Pastier also discuss FinEdLink, a platform that connects community partners and organizations with bankers who can give financial literacy presentations to audiences ranging from elementary school students to senior citizens. Learn more at aba.com/FinEd.

With Libor not guaranteed to be sustained after 2021, what should banks be doing now to prepare for a transition away from the widely used benchmark? Fed official David Bowman and ABA VP Hu Benton discuss: why Libor has become unsustainable; SOFR as a preferred alternative; how SOFR behaves differently from Libor; the urgency of ensuring bank contracts contain fallback language should Libor cease; and supervisory expectations regarding SOFR use and planning for the Libor transition.

The U.S. economic outlook, while positive, is a tale of two stories, says Comerica Bank economist Robert Dye. One story is strong current conditions, including job growth and labor force participation and wage growth. However, there are growing downside risks, including financial market volatility, trade tensions, and the quality of corporate debt. Dye also discusses trends in credit, the projected path of monetary policy in 2019 and the effects of a prolonged partial government shutdown.

Charlie Schmalz is optimistic about the policy environment for community banks. As chairman of ABA’s Community Bankers Council, he outlines key changes that will help his bank and describes it as the beginning of more to come. He also highlights the program for the upcoming ABA Conference for Community Bankers, and he talks about the persistence of the mutual banking model, community bank technology plays—and the best place to get Wisconsin cheese curds.

Julieann Thurlow of Reading Cooperative Bank in Reading, Mass., discusses a variety of ways her community bank drives innovation. Topics include: increasing automation in the loan application process; how to test and iterate products to bring a fintech approach to innovation into the bank; Reading Coop’s partnership with 11 other community and midsize banks through Alloy Labs; Reading Coop’s high school branch; and Thurlow’s lead role in ABA’s core processor innovation initiative.

In this M&A outlook, deal lawyers Jonathan Hightower and Rob Klingler outline what to expect in the year ahead for bank mergers and acquisitions: larger deals in metro markets, driven in part by the lifting of arbitrary regulatory asset thresholds; acquisitions of smaller rural banks by investor groups seeking an alternative to de novo formation that provides a revenue stream from day one; and more acquisitions by smaller banks with solid deposit bases and greater flexibility to finance deals with debt.

Employment law attorney Steve Greene and ABA senior counsel Jonathan Thessin discuss operational and compliance considerations that banks may want to consider before offering or expanding telework options. They also talk about how telework can help banks more attractive to rising generations that report seeking more flexibility in the workplace — and how it might also assist small banks in rural markets attract professionals with specialized skills.

Locally owned community banks remain a strong countervailing force to help small cities, small towns and rural areas navigate headwinds, economic development expert Aaron Renn says. Renn offers ideas for bankers to consider as they contribute to local economic development, including tips for “exporting lifestyle” to nearby commuter hubs, identifying key local assets, and finding the kinds of infrastructure investments that actually pay off. He also flags risky or ineffective development strategies.

The latest episode of the ABA Banking Journal Podcast features interviews with the winners of ABA's 2018 Community Commitment Awards. Recorded before a live audience at ABA's Annual Convention in New York, where the awards were presented, each interview explores the winning program or initiative at each bank and provides insights on how they might be implemented or adapted at other banks. These stories present the perfect inspiration as we prepare to celebrate the Thanksgiving holiday.

With less than a week before comments are due on the OCC’s August advance notice of proposed rulemaking on the Community Reinvestment Act, ABA VP Krista Shonk follows up an earlier podcast interview with tips on how to complete a comment letter and key points ABA will be making in its own letter. For bankers putting the finishing touches on their comments -- due Nov. 19 -- ABA offers a members-only guide to writing a comment letter. Learn more at aba.com/ModernizingCRA.

As we mark the 100th anniversary of the armistice ending hostilities in World War II, Steve Lepper of the Association of Military Banks of America discusses the unique financial needs of service members and their families, the challenges that come with providing military banking services and resources to help banks better serve military and veteran customers. He also discusses the importance of bank programs to help veterans transition into financial services careers. Learn more at aba.com/VeteransTraining.

2018 Midterm Elections: What the Results Mean for Bankers

As long as banks have existed, they've deployed innovative technology to better serve their customers and improve efficiency. In an episode sponsored by CSI Fintech Focus, two leading bankers discuss distinct approaches to partnering with fintech firms. At a small Iowa bank, Mike McCrary leads partnership efforts with several firms, flipping the script as a vendor to fintechs. Chris Maher discusses partnerships with fintechs to speed up account opening and enhance investment choices in wealth management.

For 11 years in a row, Chesapeake Bank has been named to American Banker's list of the top-performing community banks; for six straight years, it has been named a "best bank to work for." Bank CEO Jeff Szyperski talks about key strategic drivers of success, including specialty lines of businesses; investing in hiring and training the right employees; and in-house technological investment. He also discusses the importance of advocacy, industry consolidation and how to build a culture of employee engagement.