ABA Banking Journal
May 8, 2020

This ABA Banking Journal newsletter is a free, twice-monthly supplement to the ABA Banking Journal magazine intended to help you stay on top of industry and policy news. You can also stay abreast of banking news by visiting aba.com/BankingJournal, home to ABA Daily Newsbytes and other email bulletins.

Industry News
Nerre Shuriah of First Citizens Bank explores how to deliver a relationship-based, community banking asset management service in an environment of fee and commission compression. (ABA Banking Journal)
AI, machine learning and alternative data are helping banks and nonbanks alike make faster decisions and expand access to credit. While fair lending concerns about “black boxes” have impeded wider adoption of these technologies, the regulatory environment is shifting. (ABA Banking Journal)
In March, consumer credit shrank by 3.4%. Overall, consumer credit increased at a seasonally adjusted annual rate of 1.7% in the first quarter according to the Federal Reserve. Revolving credit decreased 10.3%, while nonrevolving credit increased 6.0% in the first quarter. (ABA Banking Journal)
As part of its ongoing efforts to support the financial industry’s transition away from LIBOR, the Alternative Reference Rates Committee has released a timeline and best practices for industry vendors in supporting the change to the Secured Overnight Financing Rate, the ARRC’s preferred alternative. (ABA Banking Journal)
As credit card use picked up in the fourth quarter of 2019, a record share of consumers paid off their bill in full each month, according to ABA’s latest Credit Card Market Monitor. Monthly purchase volumes were up across all risk tiers compared to the previous quarter, particularly for super-prime accounts, which saw a 4% increase, and prime accounts, which rose 2.9%. (ABA Banking Journal)
Data Center, Inc. (DCI)
Computer Services Inc
Jack Henry & Associates, Inc.
New Deposits at a Fraction of the Cost
By utilizing two key Jack Henry solutions, the SilverLake System® core processing platform and the Banno Digital Platform™, St. Louis-based Midwest BankCentre launched a separately branded digital institution (Rising Bank) in only six months. In its first year, Rising gathered over $130 million in new deposits at a fraction of the cost of traditional branch banking.

Read the Celent case study.
Policy News
In a recent comment letter to the OCC, ABA offered feedback on recent proposed changes to the agency’s licensing policies and procedures. (ABA Banking Journal)
As Congress contemplates additional coronavirus relief legislation, the ABA and the 51 state bankers associations wrote to congressional leaders urging them to include the Enhancing Credit Opportunities in Rural America Act of 2019 in the so-called “Phase IV” legislative package. (ABA Banking Journal)
The Consumer Financial Protection Bureau issued an interpretive rule clarifying that, due to the COVID-19 emergency, consumers have a greater ability to exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA integrated disclosures and Regulation Z rescission rules. (ABA Banking Journal)
Appraisal Institute
Cummins Allison

May 8
Webinar: Managing Your Bank's COVID-19 Social Media Strategy

May 11
Webinar: Recalibrating Your Retail Banking Strategy

May 11 - Aug 28
Facilitated Training: Analyzing Financial Statements

May 13
Webinar: Innovative Bank Programs to Serve and Protect Older Customers

May 18 - July 3
Facilitated Training: Analyzing Bank Performance

May 20
Webinar: Learn What Works BEFORE You Execute

May 27
Webinar: Retail Lending in the Aftermath of COVID-19

June 1-26
Facilitated Training: Marketing in Banking

June 4
Webinar: Today’s Role of Settlor Intent

June 8 - July 3
Facilitated Training: Bank Lines of Business

June 8 - July 10 
Facilitated Training: Managing Funding, Liquidity and Capital


Coronavirus News
Banks can learn from the virtual experiences of their customers amid COVID-19 and integrate new technology into their service offerings, including financial advising. (ABA Banking Journal)
As consumer spending patterns shift, banks are adjusting on the fly and focusing on relationships. (ABA Banking Journal)
As part of its response to the global coronavirus pandemic, the Federal Reserve is launching a “Main Street Lending Program” to deliver up to $600 billion in credit to small and midsize firms. Learn more in this bonus podcast episode. (ABA Banking Journal)
ABA has urged the Treasury Department and Small Business Administration to issue, as soon as possible, “clear, bright-line guidance” on how the Paycheck Protection Program loans will be forgiven. (ABA Banking Journal)
To facilitate banks’ participation in the Paycheck Protection Program Liquidity Facility and the Money Market Mutual Fund Liquidity Facility, the federal banking agencies issued an interim final rule that will allow institutions to neutralize the effects of their participation for purposes of the liquidity coverage ratio. (ABA Banking Journal)



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