What the Biden Administration Means for Your Financial Institution
There’s no doubt that the White House is shifting to the left, and there will be an impact on financial services. The Democratic chair of the House Financial Services Committee is calling on Biden to remove Trump’s appointee to lead the Consumer Financial Protection Bureau, and to reinstate actions discontinued since the last Democratic appointee leading the CFPB (Richard Cordray) resigned. These include restoring the Bureau’s Office of Fair Lending and Equal Opportunity’s roles and responsibilities, rescinding its recently-issued final rule amending certain debt collection rules, and replacing the Payday, Vehicle Title, and Certain High-Cost Installment Loans rule with one that better protects consumers from predatory lenders. In addition to changes at the CFPB, there also will be implications for other financial regulatory authorities.
In this information session, Velocity CEO Christopher Leonard, an attorney with an extensive background in financial regulation, will highlight some of the ways Velocity expects financial regulation to change in 2021. There will be a particular emphasis on consumer financial regulation, such as overdraft and small-dollar credit, and we’ll provide ways you can start now to take a defensive posture should regulations change.
Effective Overdraft Strategies in the New Normal
Overdraft services are going to be a hot topic in a post-crisis year, when consumers will likely need to rely on this protection more than ever. As a community financial institution, you can strike a balance between supporting your account holders’ short-term liquidity needs, while managing the increased level of risk to your institution.
The effective management of your overdraft program is critical in a time when consumers are struggling with job loss and bringing their incomes back to pre-crisis levels. That’s why it’s critical to provide a truly managed overdraft program. In this session we’ll show the actual before and after view of moving from unmanaged, one-size-fits-all overdraft limits to a managed program, as well as two variations of the managed program to give you even more flexibility.
At Velocity, our goal is for you to be able to look at your overdraft program and be proud of the optics as well as the improved way you manage revenue and compliance and best serve your account holders.
Reacquire Your Existing Account Holders through Digital Engagement
Many financial institution executives assume that once they acquire new customers or members, those consumers will embark on a journey to become loyal and profitable account holders. This assumption is often wrong.
Financial institutions fail to consider something that Velocity’s research from Cornerstone Advisors has revealed: Consumer engagement is a strong predictor of—and driver of—relationship strength. The problem is that most financial institutions don’t see strong levels of engagement from their customers or members. Once you take a close look at your account activity, you might find that a good percentage of your account holders never fully onboarded with you. A successfully onboarded account holder will generate more deposit activity, use more products and services with your institution, transact more heavily and stay with you longer. This is the reacquisition imperative—financial institutions must reacquire existing account holders through digital engagement.
In this presentation, we’ll discuss how you can leverage data and digital strategies to reacquire account holders, effectively onboard new accounts, drive cross-sales and boost transactional activity.
Drive Profitable Relationships with a Data-Focused,
Consumer banking behavior in 2020 was anything but typical. The COVID-19 crisis sent a flood of deposits pouring into banks during a good part of the year, but more than two-thirds of the gains went to the country’s 25 biggest financial institutions. As we look to acquiring more profitable accounts in 2021 and growing deposits, how will community banks and credit unions compete with the megabanks?
In this presentation, we’ll discuss how community financial institutions should leverage an automated account acquisition/engagement/ retention strategy using a combination of digital referrals, social media marketing, direct mail and digital marketing. This multi-channel approach will:
• Win account holders away from the big banks
• Keep consumers engaged and effectively onboarded
• Establish deeper, more meaningful relationships
• Result in profitable new accounts that stay with you longer
Innovative Digital Lending Strategies in a Post-COVID Era
One indisputable fact this pandemic has taught us is that digital lending platforms are no longer just a “nice-to-have” technology for your account holders – they are critical. Today’s retail and commercial account holders have faced enormous financial hardships in the wake of COVID-19 and expect their primary financial institution to provide them with the liquidity they need to manage their personal finances and help keep their business afloat. Further, they expect the convenience of having 24/7, safe access to short-term credit from the digital device of their choice. The growing prevalence of small business owners who need loans of $250,000 or less who are going to non-bank financial technology lenders for those loans is a trend you can counter with the right technology.
Be a Hero: Support Your Consumers’ Credit Needs
The COVID-19-induced recession in the U.S. has often been compared to the Great Depression of the 1930’s.
Consumers continue to struggle and are seeking sources of short-term liquidity to pay their regular monthly bills. In light of this unprecedented demand, competitors from all areas of the financial services spectrum have turned up and continue to emerge to meet consumers’ short-term liquidity needs.
Numerous regulatory agencies have encouraged the availability of short-term, small-dollar consumer loans for years and are again stressing the importance of these loans in response to COVID-19. Further, they’re encouraging alternative underwriting guidelines that better measure the ability to repay than traditional credit checks, opening up credit accessibility to consumers that might
not otherwise qualify.
In this session, we’ll discuss how partnering with a technology provider to allow you to offer small-dollar, short-term consumer loans is not only efficient and affordable, but also allows you to easily comply with regulations and offer alternative underwriting to expand availability of credit to more borrowers.
The Velocity Executive Summits are one-day events designed to help bank and credit union executives keep pace with the ever-evolving banking technology and developing regulatory landscape.
Executive Summit: Earn up to 3.5 CPE Credits
Program Level: Overview
Prerequisites/Advance Preparation: None
Delivery Method: Group Internet Based
Field of Study: Management Services
For more information regarding administrative policies such as complaint and refund, please contact our offices at 954-847-5800.