Articles

Driving Low-cost Deposits Through Customer Acquisition
By Preston Afrank

Recent studies have confirmed what we already knew: Our industry’s #1 priority is growing core deposits, and the competition is growing fiercer by the day. To emerge victorious, your institution must grow its core checking relationships—an endeavor that starts with aligning your people, process, policies, and promotion. In doing so, Haberfeld clients enjoy a powerful cost-of-funds advantage over the wider industry, and this advantage only increases with tenure.

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ICBA’s Independent Banker (Convention Issue)

Leveling the Playing Field

By Dr. Sean Payant

In our ever-changing industry, many community bankers fall into the trap of trying to grow market share by following the lead of their competitors: the “big banks.” Many of them are finding it just doesn’t work. In this article, Haberfeld Chief Strategy Officer Dr. Sean Payant compares community institutions and big banks through the eyes of the customer and explains why smaller FIs should capitalize on these differences instead of trying to close the gap.

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Indiana Bankers

Unmaking the Myths: Fact Checking Community Banking

By Achim Griesel and Dr. Sean Payant

Banking, and specifically community banking, is essential to the overall health of our country. By design, it serves as the backbone for our financial system and communities, while playing a crucial role in helping individuals, businesses, and governments thrive. In this highly competitive environment, community banks must continuously adapt to the changing landscape and competitive pressures. The key to success is to challenge and shatter the traditional banking myths that have been prevalent for years. Let’s explore five such myths and why they need to be shattered.

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mbaBanking | Print

Missouri Banker

CBA Quarterly

MBA News | Print

Bankers Digest | Print (published as “Challenging Some Traditional Myths in Community Bank Operations”)

SD Banker Publication | Print

Kentucky Banker

Wisconsin Bankers

The Tennessee Banker | Print

Hometown Banker

The Changing Face of Leadership

By Ned Pauley

A leader is someone others want to follow. What this actually looks like, however, is changing all the time. Leaders who can adapt to these changes will thrive and give their banks a competitive edge; those who don’t are bound to see increased frustration and decreased results. So, what are today’s workers looking for in their leaders? The research tells us there are three key qualities which, when exemplified by a leader, will inspire greater retention, morale, satisfaction, and results.

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Ohio Record | Print

Banker’s Digest | Print

Bank Beat

Georgia Bankers

Florida Bankers

Wisconsin Banker | Print

Hometown Banker | Print

What Might Banking Look Like in 2033?

Ten years ago, community banks could succeed simply by: (1) knowing their customers and putting their needs first; (2) matching loan terms to the life of the assets supporting them; and (3) hiring and training good people. Today’s banking is much more competitive and complicated—exponentially so beginning March 2020. The fundamentals are still vital, but will they always be enough? We can speculate, but we can’t know. We can assume that many important things will change in the decade ahead. And if change is all that’s assured, how will you prepare yourself and your bank to be successful?

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BankBeat | Print

Under Pressure: Cost of Funds Strategies in a Rising Rate Environment

By Achim Griesel and Dr. Sean Payant

Large institutions are aware of the value of low-cost deposits in today’s environment, which is why they’re offering $500 or $600 or even $2,000 to attract new customers with high balances. In essence, they are using their enormous marketing budgets to “buy” new core relationships. Community institutions don’t have that option, which means they must take an entirely different approach.

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Bank Notes

Kentucky Banker

Georgia Bankers

Florida Bankers

West Virginia Banker | Print

Ohio Record

Wisconsin Bankers

Battle Ready: Cost of Funds Strategy

By Achim Griesel and Dr. Sean Payant

When rates were at record lows for long periods of time, the true value of low-cost funding may have faded into the background; however, low-cost core deposits continue to be the driver of long-term franchise value. Now, with rates continuing to rise – the one-year treasury exceeded 4% in September 2022 – the importance of low-cost funding is once again at the forefront.

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Hoosier BankerPrint

CBA Quarterly

The Tennessee Banker

California Banker | Print

Hometown Banker

mba Banking

Kentucky BankerPrint

Virginia Banking

The Challenge of Engagement: Re-engaging your team after a pandemic

By Robb Rempel

With 2021 in the rearview mirror, the economy is reopening. Many teams are excited to return to the office, but others hope to follow a hybrid model. The last 18 months have challenged banks to innovate and embrace different staffing models and arrangements to continue serving their communities. As leaders, managers, and team members, we have an opportunity to not just go back to the way things were but to build something even stronger.

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CBA Quarterly | Print

Illinois Banker | Print

Hometown Banker

Stacking The Deck: Secrets of High-Performing Banks

By Dr. Sean Payant

Many financial institution executives spend considerable time thinking about strategies to improve overall profitability and create sustainable growth. The focus on best practices is generally aimed at strategies to cut expenses: using technology, looking at staffing levels and increasing productivity, among others. Although this advice is sound, is that actually what high-performing banks do?

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MBA News | Print

mba Banking

Bankers Digest | Print

SD Banker | Print

The Tennessee Banker

Kentucky Banker

Georgia Bankers

CBA Quarterly | Print

The Missouri Banker | Print

Hoosier Banker | Print (published as “Secrets of High-Performing Banks”)

Hometown Banker

BankDirector.com | Print

The Battle for Deposits is Heating Up: Are You Ready?

By Achim Griesel and Dr. Sean Payant

Core deposits, especially low-cost core deposits, have long been the key driver for franchise value in the financial services industry. That said, with the start of the pandemic and the ensuing influx of cash from stimulus checks and increased personal saving rates, financial institutions saw so much excess liquidity that bankers began to question the value of any deposits, including low-cost core deposits.

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Florida Bankers

West Virginia Banker  | Print

The Tennessee Banker | Print

Bankers Digest | Print

The Show-Me Banker | Print

mba Banking

SD Banker | Print

MBA News | Print

Hometown Banker

Acquiring New Customers Through Digital Channels: The Holy Grail or Just Another Channel?

By Achim Griesel and Dr. Sean Payant

Going back a couple of years prior to the pandemic, “digital” was the latest catchphrase in banking. Accelerated by the pandemic and beginning in March 2020, there has not been a single day when we haven’t had the opportunity to read even more about the digitization of the industry. From American Banker to The Financial Brand, our industry publications are flush with articles that include the word “digital.” In each case, the articles address topics such as the fintech threat, alleged changes in consumer banking behaviors or the lure of large financial institutions. If you read further, some even argue that community banking as we know it is headed for extinction as digital channels continue to change how consumers interact with their primary financial institutions (PFls).

Read the article in Bankers Digest | Print

The Digital Dynamic: Community Banking in the Modern Age

By Achim Griesel and Dr. Sean Payant

Going back a couple of years prior to the pandemic, “digital” was the latest catchword in banking. Accelerated by the pandemic and beginning in March 2020, there has not been a single day where we haven’t had the opportunity to read even more about the digitization of the industry.

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Hometown Banker

Kentucky Banker | Print

Growth Strategies for Any Economic Environment

By Dr. Sean Payant

In times of uncertainty, organizations have a tendency to put the brakes on, losing sight of long-term strategic initiatives and established growth goals. However, history has taught us the decisions your bank makes today will have lasting implications for tomorrow. Business as usual will return and our strategic initiatives and growth goals will still be there. The key is to stay focused on growing core customers, regardless of the economic environment. Here’s why.

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Iowa Bankers Exchange

Massachusetts Bankers

Illinois Banker | Print

The Loyalty Factor: Translating Relationships into NonInterest Income

By Achim Griesel and Dr. Sean Payant

The past year and a half has challenged our industry in ways previously unknown. We began the year expecting our biggest challenge would be the continued growth of deposits at reasonable rates. Today, we are faced with three challenges: a prolonged low-rate environment with continued margin compression; keeping branches open/serving our communities; and an increasing number of customer transactions moving to the digital arena.

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The Kansas Banker

SD Banker

Hometown Banker

Iowa Bankers Exchange

West Virginia Banker

The Show-Me Banker

Kentucky Banker

Bankers Digest

The Tennessee Banker  | Print

Hoosier Banker | Print

CBA Quarterly

Shattering Myths of Banking As We Open 2020

By Achim Griesel

Banking has more customer data than about any other industry. We know financial and personal information and how customers spend money. With data, we can understand behavior patterns for millions of people.

Read the article in Oklahoma Banker

Upside Down Thinking on Efficiency - Changing Priorities To Drive Results

By Dr. Sean Payant

Many financial institution executives spend considerable time thinking about strategies to improve efficiency in order to improve overall profitability. The efficiency ratio is the ratio of noninterest expenses (less amortization of intangible assets) to net interest income and noninterest income, so it is effectively a measure of what you spend compared to what you make. The very name – “efficiency ratio” – makes us think about how efficient we are with those precious income dollars. If a financial institution has a high efficiency ratio, they are simply spending too much of what they make…right? That is exactly what the name implies (emphasis on the spending side of the equation). But this is just a ratio of two numbers, and as we all know, there are two ways to bring the ratio down – reduce costs or increase revenues.

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Navigating Uncertainty: Creating a Path Forward

By Dr. Sean Payant

In times of uncertainty, organizations have a tendency to put the brakes on, losing sight of long-term strategic initiatives and established growth goals. However, history has taught us the decisions your bank makes today will have lasting implications for tomorrow. Business as usual will return and our strategic initiatives and growth goals will still be there. The key is to stay focused on growing core customers, regardless of the economic environment.

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Branches Bounce Back with Strong Retail Sales After Initial COVID Hit

By Achim Griesel and Dr. Sean Payant

Data from a cross-section of community financial institutions shows resilience in the in-person model despite challenges of the pandemic. Retail checking account opening once again occurs mainly in-branch. New business accounts, however, have followed a different path.

Read the article in The Financial Brand

Growing NonInterest Income Without Raising Fees

By Dr. Sean Payant

Over the last 10 years the banking industry has seen a steady decline in fee income associated with checking accounts—community banks under $10B have seen a 32 percent decline and banks over $10B have seen a 45 percent decline in fee income when compared to a 2008 baseline. Many institutions are raising fees. Should you?

Read the article in West Virginia Banker

Consultant: Banks Should Grow Through Customer Acquisition

By Dr. Sean Payant

Lincoln-based consultant Sean Payant urged banks to grow their organizations by adding customers and not cutting expenses during his presentation at the Bank Holding Company Association’s Spring Seminar.

Read the article in Bank Beat