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 […]
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 […]
As interest rates rise and the cost of doing business increases, bankers are challenged to figure out where we go from here. Many community banks face a huge loss in their bond portfolio due to the substantial increase in rates on US Treasury securities. Liquidity can be a problem as we have seen in some […]
Community bankers across the country are holding their breath hoping they won’t have to pay increased FDIC insurance premiums to pay for the recent $23B drain on the fund by the two large failed banks. A FDIC special assessment is coming but whether all banks will have to pay their proportionate share is still up […]
Banks across the country saw a steep decline in fee income derived from overdrafts in 2020 likely due to pandemic related stimulus checks that pushed up consumer’s checking account balances. It bounced back somewhat in 2021 but there was another sharp decline in 2022. Service charges that banks derive from overdrafts hit an all time […]
Before the early 1990’s, banks typically returned all items that would cause an overdraft on a consumer checking account. When overdraft privilege programs started consumers were thrilled that their overdrawn items wouldn’t automatically be returned to the merchant. Thirty years later, Strunk, the pioneer of overdraft programs, is still helping banks provide efficient, compliant overdraft […]
In 1993 Strunk began their Overdraft Privilege program which was designed to save consumers money and help banks become more operationally efficient. Thirty years later many banks continue to provide the service and their customers appreciate the program. When a small business or consumer has a written a check or debit on their account that […]
Digital banking has been around for years on the deposit side of the house but most banks don’t have a solution to make installment loans quickly and profitably. Fintech’s and other financial services providers have eaten our lunch when it comes to consumer lending since credit cards became a prevalent method for paying for purchases […]
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.
