Consumers pay for almost everything they do in their daily lives but historically banks have been afraid to charge a monthly fee for their checking accounts. In 2011 we developed a strategy called Secure Checking to help banks charge fees while softening the fee with products and services consumers want and use. After 13 years […]
The banking industry has lost nearly $20B in service charge income over the past 15 years and it has affected banks across the country regardless of size. Free Checking was offered by most every bank between 1990 and 2020 but now fewer banks give away anything for free. Why should they? What other service provider […]
When setting rates for loans or deposits many factors come into consideration. The credit risk of the borrower; collateral for the loan; ability to repay the loan; the term of the loan; and competition are all factors that most banks look at when determining the interest rate. One big factor that many financial institutions don’t […]
Many community bankers “look down the street” when pricing commercial loans to see what the competition is doing. Ironically, those bankers are looking at your bank as well to see what rate to offer! What if neither bank knows how to ensure the loan nor the borrower’s relationship is profitable? In the mid 2000’s large […]
Pricing commercial loans for community banks can be daunting especially in areas where they compete for loans with larger institutions. With a yield curve that has changed dramatically over the past 18 months, isn’t it time your senior commercial lender looked at a loan pricing solution? Commercial lending comes all shapes and sizes and borrowers […]
When making auto loans most credit unions look at the term of the loan, the age of the car or truck, and the creditworthiness of the member when determining the rate for the loan. Most institutions look at loan to value, debt to income and/or the credit score of the member before deciding to make […]
Over the past 30 years Strunk has helped over 1,800 community financial institutions increase income with a variety of innovative products and services. Their most recent solution is a loan and relationship pricing tool that will increase your bank’s net interest margin. Starting in 1993, Strunk was the pioneer in overdraft privilege programs which turned […]
Historically, loan pricing solutions for community banks were not affordable and only the larger or regional banks used them. The competition for lending generally dictates the rate offered to the customer. There are several factors that go into loan profitability but the three main drivers are the risk of the borrower, size of the loan, […]
When pricing commercial loans most bankers say they have to match the competition or they use some benchmark such as the prime rate. Others say they use the “flinch method”. They throw out a rate and see if the customer “flinches”. Bank CEO’s often wonder if commercial lenders work for them or for their customers […]
Formal overdraft programs are prevalent in community banks and consumers have benefited from them for over 30 years. Many articles have been written about the pitfalls and risks that consumers face from overdrafts and some of them are true. In reality, providing a consistent methodology to paying items that create an overdraft benefit both banks […]
An independent certified public accountant has examined Strunk’s operations and found them to be in compliance with the AICPA’s Trust Service Principles. It was determined that Strunk meets the Security, Availability, Processing Integrity, Confidentiality, and Privacy criteria for SOC 2 established by the AICPA.
