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5 Things You Need to Know About CECL

Posted by Brad Dahlman

Oct 11, 2017 4:00:00 PM

Current Expected Credit Loss (CECL) is far more than just a new Financial Accounting Standards Board (FASB) regulation to achieve regulatory compliance. The active credit management and integration of the potential credit losses to your financial institution (FI) is key to how you should be running your organization in the years to come. Taking a look at some simple tips can help to not only start the planning for CECL, but to then take your model results and implement them in your business. The CECL results you produce can be invaluable for your institution in order to stay competitive in the marketplace and increase the profitability of your organization.

Most financial institutions have some knowledge about the new CECL standards, however, many FIs still have questions about the requirements, what to expect, how to begin preparing, and the difference between various CECL models. Here is what you need to know about CECL...

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Topics: Financial Services Industry

Help Me Out: 4 Ideas for Leveraging Help Documentation

Posted by Katie Bennett

Aug 2, 2017 12:00:00 PM

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Topics: Financial Services Industry, Customer Experience

Summer Recap: The Top 5 Strategically Speaking Posts So Far!

Posted by Strategically Speaking

Jul 26, 2017 11:50:00 AM

It's a hot one this year. Cool down with a recap of the top Strategically Speaking posts of the summer.

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Topics: Financial Services Industry

Research: What We Don’t Know WILL Hurt Us!

Posted by Susan Griffin

Jul 19, 2017 11:30:00 AM

“Research is creating new knowledge.” Neil Armstrong

I’m sure Neil Armstrong’s confidence level was high when he stepped out of his spacecraft onto the moon. He knew how much research was done at NASA to put him there. And more importantly, to get him home safely. 

Although it’s not rocket science, the research we do at Jack Henry & Associates (JHA) is just as important to us. We depend on research to better understand the needs of financial institutions (FIs) as well as the customers they serve. With this knowledge, our associates are able to build strategies that define and accentuate the design of our products and services.

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Topics: Financial Services Industry, Tomorrow's Technology

Is This the Age of De Novos?

Posted by Shelba Murphy

Jun 30, 2017 4:45:00 PM

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de no·vo
/dā ˈnōvō, di ˈnōvō/
Starting from the beginning; anew.
“De novo” is the industry term recognizing the formation of a new financial institution, typically a bank.

Between 2010 and end of 2015, only two new banks opened their doors in the US. Since that time, however, an increase in de novo activity has appeared; with two new openings and seven pending approvals.

There are no doubt several reasons for this shift. One reason could be that the failure rate of banks during the recession is fading into history, and the economy is gradually getting back on its feet. Also, the FDIC has lifted some of the regulatory burden on these institutions. For example, in 2009, a regulation (FIL-50-2009) was created that mandated heighted examination procedures to continue for seven years after a bank’s approval. In 2016, this rule was rescinded and the period has been reduced to three years.

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Topics: Financial Services Industry

2 Big Changes That Will Impact Your Vendor Management

Posted by Jennifer Roland-Vlach

Jun 28, 2017 11:45:00 AM

Vendor management has always been a key part of financial institution (FI) compliance and risk management efforts. And recently, FIs have witnessed the importance of proper vendor management begin to receive even more emphasis. One area in particular that is contributing to this emphasis is the Statement on Standards for Attestation Engagements (SSAE) No. 18 (SSAE 18) report. That’s right, SSAE 18, not 16. Effective May 1st, 2017, the SSAE 18 became the new standard report for vendors to provide to financial institutions.

Now, in my opinion, there has not been a lot of hype regarding this change. At least not like what we saw when the SAS70 report became the SSAE 16. The reason for this is due largely to the fact that the SSAE 18 does not appear to be drastically different from the SSAE 16. Which is definitely good news for community FIs.

While the changes between the SSAE 16 and 18 will not completely change an FI’s approach to vendor management, there are some changes that will impact the due diligence efforts of FIs, especially in regard to more critical vendors.

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Topics: Financial Services Industry, Regulatory Compliance

Mining the Most Valuable Commodity in the World

Posted by Kevin Moland

May 24, 2017 11:45:00 AM

During the week leading up to New Year’s Day of 2016, I was a domestic all-star. On New Year’s morning, after I had nailed everything on her “honey do” list, my wife showed her appreciation by sending me off to spend the day “doing something I wanted to do.” The combination of her generosity and my lack of previously developed hobbies led to the discovery of a new love in my life: hiking.

I now spend at least a couple Saturday mornings each month at a local state park that happens to be one of the most beautiful places in the world. What I’ve learned over the last 18 months is that this state park also has rich deposits of the most valuable commodity in the world, and it’s easily accessible to those who stroll along its paths.

Make no mistake, this commodity is priceless. Without it, art, innovation, and excellence are impossible. Without it, persistence, durability, and consistency lose a good deal of their value. From a business perspective, this commodity is responsible for the success of companies as large and diverse as Apple, IBM, and Tesla. And yet, it’s a commodity that far too many businesses have no plan to develop or acquire.

The commodity is insight. And even though mining it is extremely cost effective, many companies just don’t take the time.

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Topics: Financial Services Industry

Four Things Product Teams Can Learn from Archery

Posted by Nick Wellner

Mar 22, 2017 11:30:00 AM

Growing up, I dabbled in archery. My dad bought a cheap fiberglass bow and showed me how to shoot a target on to of a stack of hay bales. When I started bow hunting again in my twenties, archery became a renewed passion. I attempt to shoot my bow every day; and slowly but surely, I’m hitting the center more and more consistently.

This is no easy task. A perfect shot requires your bow’s sight to be properly tuned and exactly aligned when you release. Your bow must be drawn back to the same spot each time, and released in the same exact motion. Most of the time, one of these variables is off, and your arrow doesn’t hit the center of the target. If you want to improve your next shot, you have to figure out what to adjust.

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Topics: Financial Services Industry, Information Technology

How to Email an Executive: Six Tips from Senior Management

Posted by Shane Purnell

Feb 22, 2017 11:30:00 AM

It’s not unusual for Russ Bernthal, President of ProfitStars, to check email from his phone when he’s on the road. But scrolling through long threads looking for the point of an email is a fate he doesn’t suffer well.

“Long threads drive me nuts,” he shares with me. “They’re particularly annoying when I’m traveling and looking at emails on my phone.”

Stacey Zengel, President of Jack Henry Banking, is no different. Each day, he receives anywhere from 150-250 emails of which approximately 100 require responses. Lengthy, rambling texts are the source of his email pain.

“I like to get straight to the point unless foundational information is required to make a decision  .... most of the emails I get are usually lengthy and require reading time.”

Dealing with hundreds of emails is part of every executive’s job, but that doesn’t mean they understand why they have to be included in so many.

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Topics: Financial Services Industry

The Value in FinTech Conferences

Posted by Danny Payne

Jan 18, 2017 11:15:00 AM

At most FinTech companies, banks, and credit unions, the start of a new year means planning for conferences. And for some odd reason, there seem to be two groups of people when it comes to conferences and trade shows. It’s a love/hate relationship – you either fall on the side of seeing all the good in conferences or you think they’re complete wastes of time and resources.

I for one fall into the “love” category, and I’ve been this way since I started working in FinTech almost 15 years ago. The company I worked for was a small startup and we just started selling payments in the utilities marketplace. I was a new account rep and it was my first tradeshow. It was magical! I stood in a booth; people came up to me and asked questions about my product; and I talked to them about it. In 10 minutes I could present the value proposition and product differentiation, show a demo, and set a follow-up meeting. It was like speed dating for sales … and I loved it.

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Topics: Financial Services Industry, Customer Experience

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