ABA Banking Journal
April 9, 2021

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.

Alacriti®
A Look Ahead: Faster Payments in 2021
Faster payments is an important topic that became even more important in 2020 during the pandemic. In a recent Banking Exchange webinar, Keith Gray, Vice President, Strategic Partnerships, The Clearing House (TCH); Reed Luhtanen, Executive Director, U.S. Faster Payments Council (FPC); and Mark Ranta, Payments Practice Lead, Alacriti, discussed what they expect 2021 to bring when it comes to faster payments
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Industry News
The trials of the past year required herculean efforts on the part of bank employees to meet their clients’ needs, and they have taken a toll on many bankers. Jennifer Young discusses TD Bank’s “full well-being approach” to supporting employees. 
 
Some branches are closing but that doesn’t mean reduced access to banking services, especially in lower-to-moderate-income neighborhoods.
 
New standards designed for the digital era would strengthen security, prevent fraud and finally give consumers more control over their money.
 
Data Center, Inc. (DCI)
Computer Services Inc
U.S. dollar Libor will officially come to an end starting this year. With just months to go in the transition effort, banks face a variety of challenges.
 
In February, consumer credit increased at a seasonally adjusted annual rate of 7.9%. Revolving credit increased at an annual rate of 10.1%, while nonrevolving credit increased at an annual rate of 7.3%.
 
Customer satisfaction with direct banks—those without a branch network—declined 12 points from last year, falling to 852 on a 1,000-point scale, according to a new survey by J.D. Power. The U.S. Direct Banking Satisfaction Study, now in its fifth year, found that the decline in satisfaction was due in part to historically low interest rates and a tough economic environment.
 
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.
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Policy News
The Financial Stability Board is in the process of building a “roadmap” to coordinate work being done on climate-related financial risks, FSB Chair and Federal Reserve Vice Chairman for Supervision Randal Quarles wrote in a letter to G-20 finance ministers.
 
The Federal Reserve issued its final rule codifying that regulatory guidance does not have the force and effect of law, granting much of a joint petition filed by ABA and the Bank Policy Institute that sought a formal rulemaking to ensure that banking organizations would not need to rely on a 2018 interagency statement to clarify the role of guidance.
 
ABA joined the Bank Policy Institute and the Securities Industry and Financial Markets Association in a letter to the federal banking agencies providing feedback on recent proposed changes to the Call Report. Among other things, the groups raised concerns that several of the new reporting items are duplicative of existing requirements, such as data on sweep deposits that firms already report in the FR 2052a.
 
Wolters Kluwer Financial Services
Capco
The Federal Emergency Management Agency has announced sweeping changes to the National Flood Insurance Program that will fundamentally alter the way it prices insurance and determines an individual property’s flood risk.
 
In late March, the Consumer Financial Protection Bureau  rescinded seven policy statements that provided temporary flexibilities for financial institutions when serving customers during the COVID-19 pandemic.
 
Columbia Business School Executive Education®
Leadership Essentials (Live Online)
This four-day virtual program from Columbia Business School Executive Education enables new and mid-level leaders to develop their essential leadership abilities, including team leadership, emotional intelligence, conflict management, and leading change.
 
Participants emerge from the program with fresh insights into how to be better decision makers, leaders of people and groups, and agents of organizational change.
 
The program begins June 7.

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