ABA Banking Journal Podcast

After a long legislative and regulatory advocacy effort, federal thrifts can finally elect “covered savings association” status, allowing them to exercise national bank powers without having to change their charters, holding companies or cultural identities as savings institutions. On the latest episode of the ABA Banking Journal Podcast — sponsored by Jack Henry — two experts walk through why eligible federal savings associations may wish to approach this election. Luse Gorman attorney Larry Spaccasi and ABA SVP Joseph Pigg discuss ABA’s role in winning passage of HOLA flexibility under the S. 2155 regulatory reform law and its more recent advocacy with the Federal Reserve to ensure institutions can benefit from the election at the holding company level, as well as the factors that thrift leaders can consider when deciding to make the election to become a CSA. Spaccasi and Pigg will be joined by a bank CEO to elaborate on these topics in greater detail at ABA’s Annual Convention, Oct. 2-4 in Austin.

The latest incarnation of ABA’s award-winning #BanksNeverAskThat anti-phishing campaign returns in October. On the season premiere of the ABA Banking Journal Podcast — sponsored by Jack Henry — ABA Chair Scott Anderson talks about how Zions Bank has been involved in #BanksNeverAskThat in the past and why Zions is excited about the refreshed campaign for 2022. Offering a couple sneak previews of the new creative elements, ABA’s Peter Cook also discusses how the campaign has been updated to educate consumers about how to protect themselves from scams using mobile payment apps, as well as the results bankers have seen from #BanksNeverAskThat participation. “I hope banks everywhere will take advantage of #BanksNeverAskThat,” Anderson says. Learn more about #BanksNeverAskThat and register. If you can’t see the audio player above, click here to listen to this week’s episode. This episode is sponsored by Jack Henry.

It’s National Financial Literacy Month, but on the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — Matthew Hennessey digs into the literacy that undergirds financial literacy: the basics of economic decision-making, from prices and markets to preferences and specialization. “The main lesson at the heart of economics is that life is about tradeoffs and that economics is about choice,” Hennessey says. “When we make a choice, it almost always means we’re giving something up that we value.” In the newly released book Visible Hand, Hennessey — deputy op-ed editor at the Wall Street Journal — illuminates these concepts in a self-described “avuncular” style designed to help average Americans understand how they make economic decisions every day and to appreciate the free enterprise system that lays atop those decisions. This episode is sponsored by IntraFi Network.

Often described as “charitable savings accounts” or “charitable checkbooks,” donor-advised funds are one of the fastest-growing charitable vehicles. On the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — ABA’s Evan Sparks talks about how banks of all sizes are building DAFs into their wealth management strategies. In this episode, he discusses: The nuts and bolts of how DAFs work How DAFs complement other bank business lines, including wealth management, consumer banking and business banking Why community banks have found that DAFs help keep charitable assets local How the DAF concept originated with the banking industry a century ago This episode is sponsored by IntraFi Network. Read Sparks’ ABA Banking Journal article on DAFs.

While many larger banks have created “chief diversity officer” roles over the past several years, that role has been more of a rarity at smaller banks. On the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — Nicole Almeida, CFMP, talks about how her career has taken her from from retail stores to bank branches to bank marketing and, most recently, to a new role as chief diversity, equity and inclusion officer for BayCoast Bank. “It really needs dedication,” Almeida says, noting that the DEI goals of the $2.5 billion Massachusetts mutual bank required more than a cross-departmental committee but rather the focused attention of full-time bank professionals. Almeida discusses how her role as a community bank CDO facilitates DEI partnerships and initiatives both within and outside of the bank. She shares advice for individuals transitioning into community bank CDO jobs and talks about BayCoast’s pilot program to boost diverse talent through a three-year bachelor’s program that provides a full scholarship and part-time bank job. Almeida also talks about how her former role as chief marketing officer paved the way for her to serve as CDO. “As marketers, you touch every aspect of the organization,” she says. “It’s that empathy and personality behind marketing that transitions really well and allows you to communicate well with everyone.” Read more about Almeida’s bank career in ABA Bank Marketing.

In the wake of Russia’s invasion of Ukraine, western governments have imposed unprecedented financial sanctions on individuals, businesses, banks and governments in Russia, Belarus and Russian-occupied areas of Ukraine. With new sanctions continuing to be announced and a rolling series of compliance deadlines, the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — features ABA VP Rob Rowe for a discussion of: The overall view of sanctions and what banks should be anticipating in the near future. How banks of all sizes, including small banks, can have exposure to sanctionable transactions. The role of software — and regular updates to it — as well as correspondent banking relationships in facilitating sanctions compliance. Red flags for sanctions evasion bankers should watch out for. This episode is sponsored by IntraFi Network. View ABA’s regularly updated resource page on the Russo-Ukrainian conflict.

At a community bank with limited staff and resources, tech transformation is all about setting priorities. On the latest episode of the ABA Banking Journal Podcast, sponsored by IntraFi Network, Old Point National Bank CTO Pinkaj Klokkenga discusses how she is setting and advancing these priorities at her Hampton Roads area community bank. In the episode, Klokkenga discusses: Her experience in IT and at the Federal Reserve Bank of Richmond before joining a community bank. Early IT wins for Old Point National Bank in the COVID era, including online scheduling, ATM upgrades to be ITM-compatible and revamping online account opening. How to identify the tech skillsets a community bank needs and rely on vendors for support. How to balance responsibility for client solutions with the lines of business. In a job-seeker’s market, the importance of offering top IT talent a range of engaging and creative work opportunities.

For nearly 200 years, Millbury National Bank has stayed independent as a commercially focused community bank in Massachusetts. Part of that independent tradition owes to the bank’s history of multigenerational stewardship, says President and CEO Kate Marcum on the ABA Banking Journal Podcast, sponsored by IntraFi Network. Six of the bank’s seven directors are at least the second generation in their family to serve on the bank’s board, and five are third- or fourth-generation directors. The bank also has a long-tenured staff, and Chief Operating Officer John Latino discusses how investment in leadership development and employee experience helps the bank succeed, which in tern protects its mission and independence and thus “completes the circle.” This episode is sponsored by IntraFi Network.

Even the best-intentioned policies often face implementation challenges when they meet the real world. For example, the Ohio legislature required banks to use a pooled asset system for collateral for public funds — “in theory, a great idea” that protects public funds, says Ohio bank CEO Mike Vynalek. However, large public-sector deposits made just before banks closed would leave banks without time to buy securities and thus  unintentionally undercollateralized. “It was a timing issue,” Vynalek says, and the Ohio Bankers League  successfully advocated for an amendment that created a simple two-day cure provision. It’s just one example of the tangible results of banker advocacy. On the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — Vynalek, who also chairs the Ohio Bankers League, discusses his own journey in community bank advocacy and how he’s getting emerging leaders at his bank involved in advocacy. He also discusses important policy topics on his radar screen, including a regulatory level playing field, credit union taxation and the cost of regulatory compliance. Vynalek also discusses the importance of participating in events like the upcoming ABA Washington Summit. This episode is sponsored by IntraFi Network.

During the CoreConnection session at ABA’s Conference for Community Bankers, core provider CEOs sounded notes that will sound familiar to those following the work of ABA’s Core Platforms Committee: open APIs, access to data and flexible and transparent contracts. On the latest episode of the ABA Banking Journal Podcast, Core Platforms Committee Vice Chair Kim Kirk recaps insights that bankers should take away from CoreConnection and discusses what’s ahead for the committee, including the committee’s in-progress work on core conversions. Kirk also discusses the tech transformation work she is leading at Queensborough National Bank and Trust in Georgia and her career path to being a tech and operations leader in community banking. Watch the CoreConnection sessions.

Amid persistent inflation and supply chain kinks, small businesses are finding more and more that “cash is king” — especially as their suppliers are likelier to ask for cash up front. On the latest episode of the ABA Banking Journal Podcast, Mike Keim of Univest Bank and Trust discusses how banks can help meet their business clients’ needs for liquidity through treasury management solutions and how real-time payments can help speed up businesses’ billing processes.

As Jelena McWilliams prepares to leave office after an eventful three and a half years as FDIC chairman, she sat down with the ABA Banking Journal for a conversation on her tenure at the agency. While 2018 wasn’t that long ago, it feels worlds away—in terms of the time-is-a-flat-circle nature of the pandemic, but also in the landscape of bank innovation and racial justice. In the final part of this two-part interview, McWilliams discusses several policy aspects of her tenure, including: Why she abstained from the FSOC vote to issue its report on climate change — and why financial regulators should factor the impact of climate risk supervision on employment into their frameworks. How climate risk supervision might affect the safety and soundness of community banks in energy-intensive regions. Why she chose not to finalize the OCC’s Community Reinvestment Act rule and why it’s important for regulators to work together on a consensus basis. Her hopes for the future of the FDIC’s new Mission-Driven Bank Fund, a project two years in the making to support minority depository institutions and community development financial institutions. How the FDIC’s small-dollar loan statement helps address financial inclusion challenges.

As Jelena McWilliams prepares to leave office after an eventful three and a half years as FDIC chairman, she sat down with the ABA Banking Journal for a conversation on her tenure at the agency. While 2018 wasn’t that long ago, it feels worlds away—in terms of the time-is-a-flat-circle nature of the pandemic, but also in the landscape of bank innovation and racial justice. In part one of this two-part interview, McWilliams discusses: Where bank innovation stands in 2022 and how initiatives like FDITech are shaping the policy framework for innovation. Early results from FDITech initiatives around real-time data reporting and third-party due diligence. The agency's progress on standing up a standard-setting organization that can streamline vendor risk management and “challeng[e] core processors” to be more agile. The future of remote versus on-site FDIC exams in the post-COVID environment. A behind-the-scenes look at how the FDIC responded to the early days of the pandemic, including issuing guidance on troubled debt restructurings.

Inflation surprises and labor market tightening necessitate an appropriate response from the Federal Reserve, says Ellen Zentner — chief U.S. economist for Morgan Stanley — in the latest episode of the ABA Banking Journal Podcast. With the ABA’s Economic Advisory Committee’s consensus forecast including three quarter-point rate hikes in 2022, the committee expects inflation to moderate but remain persistently high throughout the year. In addition to inflation and the path of monetary policy, Zentner also discusses: Supply chain constraints and their effects on consumer prices and demand. Housing market trends as Generation Z enters its homebuying years. The role of potential future COVID mitigation measures.

Middle-market businesses are raring for growth in 2022, and four in 10 expect their credit needs to increase this year, which according to economist Jim Glassman of JPMorgan Chase on the latest episode of the ABA Banking Journal Podcast will lead to a surge in commercial and industrial lending. “These challenges we are all focused on are all symptoms of a vigorous recovery from the pandemic nightmare,” says Glassman. “Businesses would much rather deal with these challenges than the kinds of things they were dealing with a year ago.” Glassman discusses other findings from the JPMC Business Leaders Outlook survey, including: How middle market businesses are using automation and efficiencies to free up resources to respond to present challenges, including staff shortages and supply chain kinks. Why eight in 10 businesses have returned to — or surpassed — their pre-pandemic category. Low-hanging fruit for banks in the form of low takeup rates on mobile banking, cashless payments and online bill pay in the middle market.

What’s on the community bank roadmap for digital process improvement in 2022? On the latest episode of the ABA Banking Journal Podcast, Chris Bailey lifts the curtain on his bank’s investments in digital signature management, conversational capabilities and client business optimization. As SVP and CTO at First Bank in Carmi, Illinois, Bailey discusses how his bank plans to build on its Paycheck Protection Program successes by ramping up investments in “better digital tools for our business clients,” including loan applications, document management and better conversational abilities. And for clients who still like to do business face-to-face — as is the case with many of First Bank’s ag customers in the rural southern Illinois marketplace — First Bank will continue developing dashboards to help them with financial management. Bailey also discusses how First Bank is educating its own employees about advancements in digital banking and building a culture that drives innovation internally.

5… 4… 3… 2… 1… The banking industry is in the final New Year’s Eve countdown to the cessation of two U.S. dollar Libor tenors, with the remainder set to cease in 2023. On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — ABA’s Hu Benton provides a status update on the Libor transition and what bankers need to know. Among other topics, he discusses: Where banks are in their rate transition processes The latest statements and expectations from regulators Libor alternatives banks are using or exploring, including SOFR, BSBY and Ameribor Policy remedies for so-called “tough legacy” contracts — Libor-referencing contracts that mature after cessation but that cannot be modified to include fallback language

With the pandemic and other factors triggering growth in — and new dimensions of — “money mule” scams, how what should bankers watch out for? On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — two bank fraud and AML professionals share trends they’re seeing, including: Why money mules are increasingly seeking to open business accounts to move illicit cash The growing intersection of money mule scams and online romance scams How money mule victims, once informed by the bank that they’re likely involved in scam, move from unwitting participants to witting accomplices The increase in cryptocurrency angles on money mule scams Red flags that frontline bank staff should be on the lookout for How money mule fraudsters perpetuate multiple cycles of fraud with the same victims through “recovery scams” View the ABA Foundation/FTC infographic on money mule scams.

The digital banking product changes triggered by the Paycheck Protection Program and pandemic-related digital banking needs have pushed banks to innovate like never before, says Accenture’s Bina Rajput. “It’s pushed a lot of these institutions to say ‘What’s next? How can I make this process better, and better, and better?” On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — Rajput and ABA’s Brooke Ybarra discuss the state of digital lending in 2021, including: Post-pandemic trends in digital lending The leap ahead in digitization of business lending A market map of banks, vendors and fintech firms in the digital lending space The growth of embedded finance options like buy-now-pay-later Policy obstacles that banks face in as they grow digital lending

How is the trust services sector positioning itself to serve the next generation of wealth clients? On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — Franckline Casimir-Benoit discusses trends trust professionals are navigating, including complex tax changes, state law trends, growing investor demand for ESG investment options and how trust services are embedded in today’s banking industry. As chair of the Certifed Trust and Fiduciary Advisor advisory board and a nearly three-decade veteran of the trust sector, Casimir-Benoit also talks about what trust professionals can do to advance their skills and stay current with industry trends.