The past five years have been the most trying times in most current bankers’ careers. The economy continues to struggle through a long downturn. Interest rates remain at historical lows, depressing margins and crushing the profitability of the liability side of the balance sheet, as well as branch networks. Credit…
Most bankers would intuitively agree that information technology (IT) is a strategic function in the banking industry. It is increasingly important to interact with customers over the web and via mobile applications. The amount of technology needed to support even traditional banking functions like branching and lending is growing continuously. …
On November 1, 2011, The Kafafian Group (“TKG”) celebrated its 10 Year Anniversary as an independent company. But actually, our history goes back to the early 1980’s. TKG HISTORY The seeds of TKG were planted at First National State Bank of New Jersey (“FNSB”) in the late 1970’s. FNSB was…
The economic smack-down we have weathered since 2008 has emphasized the importance of the Board of Directors’ responsibility for risk oversight. We have seen an over-reaction to the excesses that precipitated this recession through the passage of Dodd-Frank, the implementation of a number of regulatory “reforms”, and the press reports…
I’ve often found these past two years extremely difficult. As consultants, we should try not to personalize engagements. But I can’t change the internal wiring. Last year, a client failed, and many more received regulatory orders. Memorandums of Understanding (“MOU”), Formal Agreements (“FA”), and Cease and Desist Orders (“C&D”) have…
On an annualized basis, TKG performs somewhere between 35 and 40 strategic plans. Most of these engagements are between the months of June and December. However, this year we completed almost a year’s worth of plans by June 30th. You may ask, WHY? The answer is the result of regulatory…
The last few years have certainly been a difficult time for the financial industry, as well as the United States and world economies. The sub-prime fiasco has been compared to the great depression and the final chapter of this story is yet to be written. History will eventually provide us…
I recently watched the movie Miracle about the 1980 USA hockey team for the third time. In the movie, legendary coach Herb Brooks told his team that they may not be the best team on the ice, but they would be the best prepared. This inspired some self reflection. Am…
This past year I was invited to join the faculty of the ABA School of Bank Marketing and Management (SBMM). At first, I was a bit skeptical. I always believed myself to be a left brain thinker, one that processes information in an analytical and sequential way. Marketers, on the…
Much has been written about the current economic crisis, the worst since the Great Depression. Unfortunately, many successful, safe, and sound community banks have been whitewashed by the bad deeds of a few and the misconceptions of many, including the media. Using the word “bank” generically to include large banks,…