Utilize the power of integration with Strunk’s Pricing Manager

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Strunk’s Pricing Manager is a full featured loan and deposit pricing solution and relationship profitability tool. It provides the ability to model pricing scenarios on individual loans, understand the pricing power deposits bring to the table and develop scenarios that work for both the borrower and the bank. The relationship profitability feature provides the ability to understand the total value of the customer to determine if that should be factored into pricing decisions. Finally, there are rate sheet tools for both consumer loans and deposits that help the bank build strategies to improve profitability. This approach is proven to increase bank net interest income by the equivalent of 25-50 basis points.

There is no question that taking the entire relationship into account when making new pricing decisions is extremely important. Strunk’s Pricing Manager integration feature automates this process and allows clients to import their entire loan & deposit portfolio directly from any core system. The process relies on a data extract file which is customized and configured for each client and then updated in accordance with a defined schedule.

Integration allows clients to make use of Strunk’s profitability analysis feature to identify areas where the bank may not be meeting target profitability objectives. Loans are grouped by type and then statistics such as number of loans, total balance, average yield, average life, and average ROE are captured. The analysis functionality also tracks the number of loan originations by type per month.
For more information on Pricing Manager or to have integration configured for your bank, please contact Strunk at info@strunkaccess.com or visit https://strunkaccess.com/pricing-manager/.

Banks Can Increase Customer Satisfaction & Fee Income at the Same Time

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Strunk’s Secure checking strategy has been around since 2011 and it will enhance customer loyalty while increasing fee income at the same time. Notably, 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 anything away for free.

Secure checking is easy to implement and it provides financial and lifestyle benefits to consumer accounts for a small monthly fee. Many times a bank’s customers are paying for these services elsewhere for substantially more than what the bank can offer them for. Consumers are willing to pay for value. Secure checking offers tremendous value.

Recently, banks have received a reprieve from the overzealous industry watchdogs but our industry is changing and consumer habits are changing. Tele-health services, roadside assistance, cell phone protection, Identity theft protection, and access to credit bureau and credit scores are examples of services a bank can provide at a fraction of the cost a consumer would pay individually.

Over 1,200 banks offer the Secure checking account to their offerings while maintaining free checking. You can expect income to go up by at least $50 per checking account per year. The program is easy to implement and easy to manage.

Contact Strunk at 800-728-3116 or email at info@strunkaccess.com to learn more about fee income programs offered by Strunk.

Bankers Look for Ways to Make More Money

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Strunk recently attended two national banker’s conventions and both were well attended by community bankers from across the country. The exhibit halls at both had a lot of vendors no others offer three different types of income producing programs like Strunk does.

1) Strunk’s Overdraft Privilege program is being used by over 1,800 banks across the country. We help financial institutions manage the day to day overdraft process as a line of business…and we guarantee compliance. With the recent announcement that the Senate has killed the proposed CFPB guidance on limiting banks to charging no more than $5 per overdraft, now is the time to revisit your overdraft payment process.

2) Strunk Secure Checking program will increase fee income by $50 per checking account per year and it is currently being used by over 900 banks nationwide. Consumers are willing to pay for value in a checking account and you can still maintain free checking.

3) Our Loan, Relationship, and Deposit Pricing tool will increase your net interest income by at least 25 basis points. We have worked with over 400 community banks and our analytics package will help you identify areas to increase NII. You set the rates based on the Return on Equity you want to achieve. Many community banks net interest income is well below the 60th percentile compared to peers when looking at year-end UBPR numbers. It doesn’t have to be that way.

Since 1993 Strunk has been helping banks increase income. Contact Strunk at 800.728.3116 or info@strunkaccess.com to find out how we can help your bank.

 

Overdraft Privilege Continues to be an Important product for Consumers

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With the ongoing negative perception and strict regulations surrounding overdraft privilege, financial institutions find it increasingly challenging to offer this service. Most adults in the U.S. consider overdraft privilege a valuable resource at a reasonable price, highlighting the significant disconnect between regulators and public sentiment.

Overdraft privileges help consumers avoid declined transactions, which can lead to late payment fees and non-sufficient funds (NSF) charges. Consumers feel it is essential to have overdraft privileges to ensure that large payments, such as mortgages or rent, are covered and paid on time if these payments overdraft their accounts. Generally, overdraft privilege is more affordable than some short-term credit alternatives, like payday loans. This is why most consumers have not seriously considered giving up their overdraft privilege. While some consumers with a buffer amount in their checking accounts may not need overdraft privilege, for most Americans, it is necessary to prevent essential transactions from being declined.

When surveyed, banks have found that consumers appreciate that banks covered payments that would have otherwise been declined. Consumers have an easier time checking their account balances than ever before. With access to their accounts via websites or mobile apps, many Americans can monitor their account balances to avoid overdrawing their accounts and incurring fees.

For decades, Strunk has supported financial institutions in delivering a convenient overdraft privilege to their clients while enhancing fee income and ensuring full compliance. Our consulting services for overdraft privilege, combined with top-notch software, can help your institution’s program thrive. Given the increasing regulatory scrutiny, our compliance guarantee is becoming even more crucial. As regulators focus on returned checks and re-presentment, our Overdraft Privilege (ODP) program provides excellent service to customers by covering item costs instead of returning them.

Click here for more information or to contact Strunk for a demonstration.

Strunk at ICBA LIVE 2025

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The Independent Community Bankers Association (ICBA) hosted this year’s LIVE event at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee from March 11-14. In addition to various roundtable discussions, ThinkTECH presentations, and Learning Labs attendees enjoyed visiting with vendors in the Expo Hall. The highlight of the event just may have been the final evening at the Grand Ole Opry!

Strunk was excited to meet with so many bankers, discussing a variety of topics important to them. Many banks are taking advantage of Strunk’s Pricing Manager solution, a full-featured loan and deposit pricing application. Banks are able to deploy a tool to all lenders to ensure they are armed to price loans profitably and consistently based on each bank’s target profitability objectives. It also provides the ability to understand the details of relationship profitability so that better pricing decisions can be made. Pricing Manager is affordable, easy to implement and use, and it will increase the bank’s net interest income by 25-50 basis points.

Many banks are understandably concerned about lost fee income, so another hot topic of conversation was to review Strunk’s Overdraft Protection program with current and prospective clients. As regulatory scrutiny increases, Strunk’s compliance guarantee is even more valuable than ever.

Strunk continues to provide value-added SaaS solutions that help community banks increase profitability, while controlling operating expense. In addition to these offerings, Strunk discussed their best-in-class governance, risk and compliance solution, Risk Manager.

For more information on Strunk’s solutions, visit https://strunkaccess.com/ or contact Strunk at info@strunkaccess.com.

 

Increase Net Interest Income With A Loan Pricing Tool

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Many community banks net interest income is well below the 50th percentile compared to peers when looking at year-end UBPR numbers. It doesn’t have to be that way. The key is to price loans competitively but also consider the risk of the borrower, the term of the loan and the SIZE of the loan. Yes, size does matter when pricing commercial loans.

When analyzing the commercial loan portfolio of community banks we almost always see very little difference in the yield of loans under $100K compared to loans over $500K or $1M. Why is that? Doesn’t it cost a lot more to underwrite and service a larger loan than let’s say a farm equipment loan?

When making commercial loans the three most important factors of loan profitability are 1) size of loan; 2) credit risk of the borrower; and 3) term of the loan. It is hard to make money on a small loan that pays off in a short period of time. Likewise it is hard to make money on a small line of credit that rarely gets used.

Strunk’s loan pricing tool will ensure your lenders price new loan opportunities that meet both the customer’s needs and the bank’s profitability target. It factors in deposits and other loans as well.

To increase net interest income contact Strunk at 800.728.3116 or info@strunkaccess.com to learn more about Strunk’s affordable loan pricing solution.

Strunk at the ABA’s Conference for Community Bankers 2025

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This year, the American Bankers Association hosted the Conference for Community Bankers in Phoenix, Arizona at the beautiful JW Marriott Desert Ridge Resort and Spa from February 16-18. Attendees kicked the event off with a golf tournament, some educational sessions and an exciting reception where they were able to reconnect.

Speakers discussed topics such as the future of community banking, the age of digital transformation and a variety of sessions focused on lending. Both bankers and vendors alike enjoyed a reception on Monday evening toasting to community banking.

Strunk was excited to have the opportunity to discuss and demo, Pricing Manager, to several clients as well as to many new faces. Pricing Manager is a full-featured loan and deposit pricing solution that will provide banks with the ability to set loan and deposit pricing consistently and profitably. Commercial loans can be priced consistently by every lender – creating options for customers that all achieve the bank’s profitability targets. Additionally, rate sheets for consumer loans, residential mortgage loans, and deposits can easily be created that are also based on established profit objectives. Not only will Pricing Manager drive consistent achievement of profitability targets – it will also help banks win more quality deals! Pricing Manager integrates with any core system, so lenders can see the value of the full relationship when making each pricing decision.

Strunk’s goal is to continually provide value-added SaaS solutions that help community banks increase profitability, while controlling operating expense. In addition to their latest offering, Strunk highlighted their overdraft service and best-in-class governance, risk and compliance solution, Risk Manager.

For more information on Pricing Manager or any of Strunk’s other solutions, visit https://strunkaccess.com/ or contact Strunk at info@strunkaccess.com.

Grow Your Loan Portfolio with A Loan Pricing Tool

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Competition for “A” rated commercial loan customers is tough in many markets and a loan pricing solution might be the answer to win more deals. How many times has your financial institution lost a loan customer or have been told that “I can get a better deal down the street or from Farm Credit”. It doesn’t have to be that way.

Pricing loans that meet your profitability target can come with many different strategies that meet the borrower’s needs as well. What is the interest rate; what is the term; is it an adjustable or fixed; are there fees involved or not; what about deposits the borrower may have and are they interest bearing or in a operating account; does the borrower have other business with you. Why not give your prospective customer several choices that have the same financial result to the bank?

I have heard about everything…that our bank is “too small” or “Farm Credit’s interest rates are way too low” or “we can’t compete with the larger regional banks on rates”. Really? Why not look at a loan pricing tool that will help you price loans based on the entire banking relationship including other loans and related deposits. They are easy to use, easy to implement and your lending officers will like the flexibility they afford.

Start competing for larger loans, make smaller loans more profitable and get a handle on who your best customers are from a profitability standpoint…they are likely NOT the customer who has multiple loans with you as most lenders think.

To grow your loan portfolio by winning more deals contact Strunk at 800.728.3116 or info@strunkaccess.com to learn more about Strunk’s affordable loan pricing solution.

The importance of ongoing monitoring of vendor relationships

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A crucial aspect of the Third-Party Relationship Life Cycle that is often overlooked is ongoing monitoring. Regularly monitoring vendors is vital for managing external risks and making sure that third parties adhere to compliance and performance standards throughout the duration of the relationship. The frequency of monitoring your vendor management program depends on various factors, such as the type of business relationship, vendor risk rating, vendor performance, and regulatory obligations.

To effectively monitor your vendors, begin with a risk assessment to evaluate the inherent risks they pose when introduced to your operations. This assessment will pinpoint areas that need careful oversight and establish how often you should conduct reviews, depending on the vendor’s associated risk levels. Next, define your monitoring criteria according to the vendor’s risk level. Establish thresholds and alert mechanisms within your monitoring system to identify any deviations from these criteria, enabling you to respond quickly to potential issues.

When establishing a monitoring process, choosing the appropriate third-party monitoring solution is crucial for supporting continuous oversight. Strunk’s Vendor
Manager software enables you to tailor your ongoing monitoring categories according to risk levels, automating the entire process. This improves efficiency and minimizes missed opportunities. Strunk’s software also helps track deviations and gives feedback on the vendor’s performance.

Ongoing monitoring is crucial for managing vendor risks, ensuring that vendors fulfill their contractual obligations, and adhering to regulatory standards. An effective vendor monitoring process enhances your overall vendor management program. Additionally, it serves as one of your most valuable tools to address minor issues before they escalate into major ones. Click here for more information.

Strategy to Combat Bank Service Charges Under Attack

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Bank fee income has come under attack once again by the regulators and what can you do about it? Four fee income producing products that all banks offer will be curtailed with recent changes to regulatory guidance.

  1. The banking industry has charged fees for returned checks on consumer accounts for as long as most of us have been in banking. Some regulators don’t like banks charging for second presentment of a returned check even though that practice is fully disclosed. Since it is difficult to determine if an item is being presented a second time, some banks have discontinued charging for NSF items.
  2. Getting consumers to opt in for debit card caused overdrafts has been around since July 2010 as required by the Federal Reserve. The nearly 15 year old regulation requires banks to send a confirmation when a consumer opts in. Now the regulators want you to a) get a signature on the A-9 form or b) record all calls where the consumer opts in for the service. Reducing the number of opt-ins will substantially decrease your bank’s fee income.
  3. Now the CFPB wants to limit what your bank can charge for an overdraft or NSF item. The maximum fee is $5 or whatever it costs you to process the item. Most community banks charge $25-$35 per NSF item so this will once again substantially reduce fee income.
  4. Lastly, six months ago there was a Federal Reserve proposal to cap the debit card interchange that your bank receives. Likewise, there is a Credit Card Competition Act that the Senate is currently looking at. The result of these actions would reduce interchange and or swipe fees for banks.

Since 2011, Strunk’s Secure Checking program has helped hundreds of banks provide features to their consumer checking accounts for a small monthly fee. Consumers like the benefits offered and they don’t mind paying for them. In many cases those same consumers are paying quite a lot more elsewhere. Much like the Overdraft Privilege strategy, Secure Checking generates a considerable amount of customer loyalty and goodwill while the bank increases fee income by at least $50 per account per year.

Contact Strunk at 800.728.3116 or info@strunkaccess.com to find out more about our proven strategies to increase income. Have a great 2025!

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.