The Daily Dividend

News, notes and insights from around the industry

JUNE 22, 2018
Robin Hood and Outlaw Banking
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

Robin Hood and Outlaw BankingThere’s a new kid on the block when it comes to banking – a crypto bank is making the move to join financial institutions offering traditional services. Robinhood Markets Inc. already has more than 4 million users of its stock-trading platform, and Bloomberg reports that the startup is talking to regulators about expanding its reach.

Robinhood is following in the footsteps of other fintech firms looking to reboot the banking industry. Over the past few years, more technology startups and other large digital companies have expressed an interest in offering a different – and to their minds, better – kind of banking. Robinhood added cryptocurrency and options trading recently, and is now hoping to do what other fintech companies haven’t yet – offer banking products without a partnership with a more traditional institution.


What does this mean for those traditional financial institutions if the OCC opens to the doors to their fintech competitors? These new organizations plan to trade on an existing relationship with their customers, cutting-edge technological features and a painless user experience. If their talks with regulators go anywhere, banks and credit unions will face yet another competitor – not to mention renewed pressure to offer upscale, highly tailored and easy-to-use digital products that their customers will want to use.

JUNE 21, 2018
Model Behavior
By Mark Loehrke, Editor, Financial Managers Society

Over the years, successive versions of the FMS publication Choosing the Right ALM Modeling Solution have long been among our most popular member offerings. That’s why we’re extremely excited to introduce our newly published seventh edition of this terrific member resource!

Once again spanning a range of in-house models, outsourced models and risk assessments from a dozen industry-leading ALM model vendors – along with a new introduction and supporting information from Christine Mills of MountainView Financial Solutions – this is a great reference work for any institution looking for a new ALM solution, considering a change of vendor or contemplating a shift from an in-house to outsourced model.

Best of all, the new seventh edition is offered as a convenient online flipbook and, as always, is complementary for FMS members.

JUNE 20, 2018
Adding a Risk Committee
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

Adding a Risk CommitteeShould a financial institution have a risk committee in addition to its audit committee?

This important question was debated at the recent Bank Audit and Risk Committees Conference. While large institutions ($50 billion+) are required by Dodd-Frank to have a risk committee, others have to decide for themselves if it’s a good idea or not. Casual polling at the conference showed that half of attendees had both audit and risk committees, and they agreed that the size of the institution wasn’t necessarily the best indicator of whether a risk committee was needed. General wisdom says that institutions with more complicated business models are more in need of that extra oversight.


Risk committees have complicated relationships with other committees, since their concerns overlap with so many other departments. Most institutions deal with this potential confusion by assigning the risk committee a broad strategic overview, as opposed to the individual risks that other committees should deal with.


Deciding whether your institution needs a risk committee and determining how such a group should operate within the organizational framework are major decisions that should be weighed thoughtfully – it’s not an automatic for every bank or credit union. However, some of the converts at the conference seemed very happy with the addition, with one attendee remarking, “Now that we have a risk committee, I don’t know what we did without one.”

JUNE 19, 2018
Summer of Research
By Mark Loehrke, Editor, Financial Managers Society

Summer of ResearchEven as you continue to pore over the thoughts and opinions of the 400 bank and credit union executives who helped shape the proprietary research in our 2018 Community Mindset: Bank and Credit Union Leadership Viewpoints report, FMS has been working with our partners to provide FMS members with two more terrific resources for industry data and insights to review this summer. 


The 2018 FMS Compensation Survey

Developed in partnership with BalancedComp and IZALE Financial Group, this valuable member-only resource offers competitive market data to help determine how your institution’s compensation and benefit payouts compare with those of your bank and credit union peers. Take advantage of this brand new research effort to help guide the salary and incentive pay decisions in your institution.


2018 Profitability Perspectives: Analytical Trends in Financial Institutions

Working with Kaufman Hall, we compiled the responses of more than 175 senior finance professionals in banks and credit unions across the country to find out what they were doing to measure profitability in their institutions. From measuring profitability across multiple dimensions to making high-quality pricing decisions, compare their responses to the profitability practices and priorities in your institution with this great new resource.

JUNE 18, 2018
Boogie in Orlando
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

Countdown to OrlandoWith another big slate of premier education, a wide range of exciting networking events and a bustling FMS marketplace, last week’s 2018 FMS Forum offered plenty to see and do in Orlando without even visiting a giant mouse or a boy wizard.

The fun started on Sunday with a morning golf outing and a round of afternoon breakout sessions, followed by our 70s-themed Welcome Reception, celebrating 70 years of FMS with disco balls, lava lamps, non-stop throwback tunes and even a few creative wardrobe choices.


Chip Bell kicked off the Monday program, delivering a rousing and impactful presentation on changing customer expectations (for those who couldn’t make it, look for a Q&A with Chip in the upcoming July-August issue of FMS forward), followed by a jam-packed schedule of breakout sessions and multiple networking opportunities in the marketplace throughout the day.


Tuesday was another busy day with a dozen additional breakout sessions, a timely regulatory and accounting update and an inspiring send-off on leadership from mountaineer Paul Deegan. We also got the chance to applaud the winners of FMS’ inaugural awards and scholarship program.


If you missed all of the fun and excitement of Orlando, fear not – we’re already hard at work preparing for next year’s trip to Boston for the 2019 FMS Forum. We hope to see you there!

JUNE 15, 2018
New Digs
By Mark Loehrke, Editor, Financial Managers Society

New DigsFMS is on the move – but only by a few floors. Effective Monday, June 18, our new physical and mailing address will be:

1 N. LaSalle Street

Suite 2225

Chicago, IL 60602


It’s the same street address, but a different suite number. So please update your records accordingly, and be sure to send all checks, correspondence, housewarming gifts and Daily Dividend fan mail to our new home.

JUNE 14, 2018
Community Mindset: Round Two
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

Community Mindset: Round TwoFor the second consecutive year, FMS surveyed 400 senior executives from community banks and credit unions, getting their thoughts on the challenges, priorities and opportunities facing their institutions.

Check out Community Mindset: Bank and Credit UnionLeadership Viewpoints 2018 to find out more about:


General Optimism

Financial institution leaders are still feeling positive about their industry in 2018.


Growth Opportunities

Technological innovation is still the top factor for growth, but other strategic priorities saw a surprising boost from their positions last year.


Regulatory Challenges

While regulatory burden is still a concern, the weight seems to be less overwhelming.


Profitability Analysis

More institutions are dabbling in profitability analysis, but how they’re using it differs.


Mark Loehrke
Editor and Director, Publications and Research

Danielle Holland

Hilary Collins
Specialist, Publications and Research