Fears of a wider war in the Middle East are mounting, learn how you can help Hurricane Helene survivors, and here are five key things to know about the port strike.
Don't miss our exclusive webinar next Wednesday at 2:00 PM ET, where Cam Fine, the former president and CEO of ICBA, and Ed Yingling, the former president and CEO of ABA, will explore the impact of the 2024 election on financial institutions. Register here.
Here's what else you might want to read this week:
"Who Wins in an Open Banking Future?"
This was my pick for story of the week because it's worth it to read between the lines. CFPB Director Rohit Chopra has argued his open-banking proposal would help level the playing field between small and large banks. His comments were echoed by John Pitts, head of policy for Plaid, when he joined Banking with Interest earlier this year. PNC CEO Bill Demchak, however, made the opposite case at a recent conference, arguing it would hurt small banks. But will it? Many experts in this story dismissed Demchak's arguments and reporter Kate Berry notes that PNC has itself strongly resisted data-sharing, suggesting its CEO may be more worried about his own bank than yours.
PNC in fact struck a data-sharing deal with Plaid just last week, ending a yearslong legal dispute where the bank had accused Plaid of violating trademark laws by replicating its logon screen.
"That 5% CD Is a Great Deal-Until the Bank Calls It Back"
For obvious reasons, banks are pulling back on high-yielding CDs. Expect more articles like it as rates fall over the coming months.
"Gruenberg Emphasizes 'Vital' Role of Relationship Banking"
Relationship banking is crucial to small-business lending, FDIC Chair Marty Gruenberg said during a speech at the St. Louis Fed's conference on community banking research earlier this week. He also praised community banks' underwriting practices, claiming they're "worth preserving and supporting … a failure to do so would undermine an essential pillar of our economy."
"Fed's Bowman Calls for a Rethink of Regulatory Thresholds"
At the same conference, the Fed governor gave a speech on community bank oversight, claiming that business models, not asset size, should determine levels of regulatory scrutiny.
"Can Faster Payments Lead to Faster Fraud?"
In a word, yes. Read how community banks can prevent criminals from swindling their customers through multilayered controls, including consumer education.
"Banks Confront Helene's Devastation: 'Worse Than It Appears on Television'"
Banks impacted by Hurricane Helene are focused on restarting operations, but first they need to find their employees. Institutions located Western North Carolina are facing an especially difficult road to recovery.
Three weeks ago, Fed Vice Chair Michael Barr went to the Brookings Institution to divulge what seemed like a compromise between the Fed, FDIC, and OCC to scale back capital requirements for big banks. But since then, the stalemate has only gotten staler.
"For These Two Small Banks, Politics Is Big Business"
Political campaigns are becoming increasingly expensive, complicated, and fast-paced. This means they also have greater borrowing, spending, and banking needs. See which institutions are the preferred choices for Democrat and Republican political committees.
"Run, Protect, Grow: Digital Acceleration for Small and Midsize Banks"
One expert outlines his strategy to help smaller institutions bridge the digital gap with larger competitors.
"Specialize and Thrive: Community Banks Find Success Lending to Niche Markets"
Niche lending can help institutions reach new markets and grow organically. Learn how three community banks built specialty practices for the commercial fishing, aviation, and dental markets.
"Redefining Risk Management for Financial Institutions"
Regulatory burdens, operating inefficiencies, and data overload have rendered banks' risk management practices inadequate, this expert says. He advises a "transformative approach," by which he means strengthening the current three-lines-of-defense model while getting smarter about analyzing, managing, and reporting data.
"How Generative AI Can Revolutionize Cybersecurity in Community Banking"
GenAI is increasing fraud risks, but it can also help community banks spot fraudulent activity faster and mitigate cyberthreats humans might miss.
"JPMorgan Plans to Open Around 100 New Branches in Low-Income Areas"
By building "community centers" in low-income areas with spaces where the bank can offer workshops on financial literacy, JPMorgan claims it can do good and make money. "We measured these branches by number of customers, deposits, investments, and the model works," CEO Jamie Dimon said.
Fun bonus: Aaron Klein of Brookings continues to be a Democrat who: a) enjoys causing trouble for other Democrats and b) really dislikes credit unions' tax exempt status, making him a hero of sorts for banks. Just this past week, he is after the Fed and CFPB for failing to expedite payment processing as the law requires, and publicly raising questions about the CIA's credit union (disclosure: I was previously a member) deal to secure naming rights on a DC stadium.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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