Bank executive insights, unique business strategies, regulatory updates from D.C., and fun banking stories—all this and more on the ABA Banking Journal Podcast, brought to you weekly by the American Bankers Association's award-winning podcast team.
Persistent Inflation, Full Employment Driving Rate Hike Expectations
Inflation surprises and labor market tightening necessitate an appropriate response from the Federal Reserve, says Ellen Zentner — chief U.S. economist for Morgan Stanley — in the latest episode of the ABA Banking Journal Podcast. With the ABA’s Economic Advisory Committee’s consensus forecast including three quarter-point rate hikes in 2022, the committee expects inflation to moderate but remain persistently high throughout the year.
In addition to inflation and the path of monetary policy, Zentner also discusses:
Supply chain constraints and their effects on consumer prices and demand. Housing market trends as Generation Z enters its homebuying years. The role of potential future COVID mitigation measures.
Preparing for a Surge in Business Lending
Middle-market businesses are raring for growth in 2022, and four in 10 expect their credit needs to increase this year, which according to economist Jim Glassman of JPMorgan Chase on the latest episode of the ABA Banking Journal Podcast will lead to a surge in commercial and industrial lending. “These challenges we are all focused on are all symptoms of a vigorous recovery from the pandemic nightmare,” says Glassman. “Businesses would much rather deal with these challenges than the kinds of things they were dealing with a year ago.”
Glassman discusses other findings from the JPMC Business Leaders Outlook survey, including:
How middle market businesses are using automation and efficiencies to free up resources to respond to present challenges, including staff shortages and supply chain kinks. Why eight in 10 businesses have returned to — or surpassed — their pre-pandemic category. Low-hanging fruit for banks in the form of low takeup rates on mobile banking, cashless payments and online bill pay in the middle market.
The Digital Transformation Roadmap for 2022
What’s on the community bank roadmap for digital process improvement in 2022? On the latest episode of the ABA Banking Journal Podcast, Chris Bailey lifts the curtain on his bank’s investments in digital signature management, conversational capabilities and client business optimization.
As SVP and CTO at First Bank in Carmi, Illinois, Bailey discusses how his bank plans to build on its Paycheck Protection Program successes by ramping up investments in “better digital tools for our business clients,” including loan applications, document management and better conversational abilities. And for clients who still like to do business face-to-face — as is the case with many of First Bank’s ag customers in the rural southern Illinois marketplace — First Bank will continue developing dashboards to help them with financial management.
Bailey also discusses how First Bank is educating its own employees about advancements in digital banking and building a culture that drives innovation internally.
Navigating the Beginning of the End for Libor
5… 4… 3… 2… 1… The banking industry is in the final New Year’s Eve countdown to the cessation of two U.S. dollar Libor tenors, with the remainder set to cease in 2023. On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — ABA’s Hu Benton provides a status update on the Libor transition and what bankers need to know. Among other topics, he discusses:
Where banks are in their rate transition processes The latest statements and expectations from regulators Libor alternatives banks are using or exploring, including SOFR, BSBY and Ameribor Policy remedies for so-called “tough legacy” contracts — Libor-referencing contracts that mature after cessation but that cannot be modified to include fallback language
From Crypto to Online Romance, How Money Mule Tactics Are Evolving
With the pandemic and other factors triggering growth in — and new dimensions of — “money mule” scams, how what should bankers watch out for? On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — two bank fraud and AML professionals share trends they’re seeing, including:
Why money mules are increasingly seeking to open business accounts to move illicit cash The growing intersection of money mule scams and online romance scams How money mule victims, once informed by the bank that they’re likely involved in scam, move from unwitting participants to witting accomplices The increase in cryptocurrency angles on money mule scams Red flags that frontline bank staff should be on the lookout for How money mule fraudsters perpetuate multiple cycles of fraud with the same victims through “recovery scams” View the ABA Foundation/FTC infographic on money mule scams.
The State of Play for Digital Lending
The digital banking product changes triggered by the Paycheck Protection Program and pandemic-related digital banking needs have pushed banks to innovate like never before, says Accenture’s Bina Rajput. “It’s pushed a lot of these institutions to say ‘What’s next? How can I make this process better, and better, and better?”
On the latest episode of the ABA Banking Journal Podcast — sponsored by ServiceLink — Rajput and ABA’s Brooke Ybarra discuss the state of digital lending in 2021, including:
Post-pandemic trends in digital lending The leap ahead in digitization of business lending A market map of banks, vendors and fintech firms in the digital lending space The growth of embedded finance options like buy-now-pay-later Policy obstacles that banks face in as they grow digital lending
Empowering, insightful and actionable! 🙌
Whether you’re well established as someone innovating in the world of banking and finance, or just getting started as a catalyst for change within your organization - this is a must-listen podcast for you! Evan and the entire ABA team do an incredible job leading conversations that cover a huge breadth of topics related to the ins and outs of successfully navigating an ever changing banking landscape - from leaders who’ve actually walked the path. Highly recommend listening and subscribing!
Scintillating view into the secret world of high finance
This was an excellent listen, highlighting elements of banking not commonly understood by the general public. The host Evan Sparks deftly guided the conversation to highlight interesting elements of the interviewees experience. Altogether an excellent podcast, and I will continue to subscribe.