From the Experts


Is “Too Big to Fail” Evolving Into “Too Small to Succeed”?

Posted September 20, 2017 by Michael M. Moran in From the Experts.

Coming out of the financial crisis so much attention, politically and economically, seemed to be focused on chants of “break up” the big banks. Irrespective of one’s view on the rationale of such a move — would global competitiveness potentially be exchanged for political expediency? Hadn’t some of the largest traditional commercial banks, such as JPMorgan Chase, effectively stepped up to deploy tremendous resources in helping resolve the haphazard ways of Great Recession poster kids like Lehman, Bear Stearns, Washington Mutual, etc.? Did some bailouts simply perpetuate the concept of moral hazard as few seemed to be truly held accountable during the chaos?

What is clear is that the concentration of banking assets continued to migrate to our nation’s largest institutions. As the chart below depicts, pre-crisis the five largest banks in the country controlled nearly $5 trillion, or approximately 46% of the industry’s total assets.

Fast forward to today, and the $9 trillion in footings at the nation’s five largest banks now account for more than 53% of the industry’s total assets. Side note, if you incorporate Goldman Sachs and its $900 billion balance sheet into the fold, since “technically” it obtained a banking charter during the financial crisis (while the aforementioned JPMorgan Chase did quite a bit of “clean up” work in growing to $2.6 trillion), they would rank #5 on this list and effectively push the concentration level to nearly 60% of the banking industry’s assets among the Top Six:

Read Full Post

Harvey, Irma and Equifax

Posted September 13, 2017 by Stephen D. Heckard in From the Experts.

Disasters come in all shapes and sizes. Over the past couple of weeks, we have experienced three massive disasters. Two from Mother Nature that could not have been avoided, and one disaster that was man-made, Equifax, that should never have occurred. I have never experienced a hurricane and I hope that I never do. I have been the victim of identity fraud so the Equifax news triggered an immediate reaction.

Read Full Post

Lawyers and Money

Posted August 15, 2017 by Stephen D. Heckard in From the Experts.

No bank wishes to needlessly increase expenses, however, when it comes to contract negotiations the services of a qualified attorney is a justifiable expense. It is an absolute must and it will be well worth the money spent. Today’s technology service agreements have become significantly complex, overly complex. Every year contract complexity seems to increase. While the agreement defines the services being offered, a substantial portion of each agreement is devoted to marginalizing vendor risk in the event your bank does not complete the contract’s term, if the vendor does not perform, or if new regulations are passed…and so on and so on.

Read Full Post

When It Comes to Core Conversions, Look Before You Leap

Posted July 31, 2017 in From the Experts.

Bank Director.com recently published an article by Jack Milligan, Editor-in-Chief for Bank Director Magazine,”When It Comes to Core Conversions, Look Before You Leap” (Link Below) which features helpful information for financial institutions faced with choosing a core provider from Steve Heckard, Senior Consultant, Technology Solutions, ProBank Austin.

Read Full Post

How Long is too Long?

Posted July 26, 2017 by Stephen D. Heckard in From the Experts.

No one knows better than a bank that time is money. The longer a customer can commit their funds, the better the rate a bank will pay on their deposit. The same applies to technology contracts. The longer your bank is willing to commit to your vendor, the better the rate and/or discount your bank will receive.

Read Full Post
Next Page