TOPIC: Budgeting

How to build a better bank budget in 7 steps

As we start Q4, it's the right time to think about strategies for success! Let's start with the tough stuff: budgets.

Having a realistic, clear, and helpful budget is critical to having a successful business. Unfortunately, even among bankers, budgeting gets a bad rap. It seems like everyone from the Board and senior leadership to the marketing analysts run into issues with their budget. It is possible to resolve those issues and optimize your budget! Learn 7 best practices that will radically improve your bank or credit union's budgeting strategy here:

    Free September Webinar! Vendor Management Includes Vendor Selection: How to Shop for the Right Vendor

    You are invited to our September webinar discussing vendor selection. Register for free today! If you are not able to make it to the live event, the recording will be available for download afterwards.

    September typically kicks off the budget planning season for the coming year, and you and your colleagues may be asked to start the process to choose a new vendor. With the 5 P’s tenet of Proper Planning Prevents Poor Performance, we’ll share our best practices to map out the methodology necessary to select the right vendor – and for the right reasons. Some items covered will include:

    • Conducting a needs assessment for the vendor/program that coincides with the FI’s business and operational objectives
    • Identifying key stakeholders internally for consensus building prior to the onset of the project
    • Building a list of possible vendors
    • Writing an RFI, RFP and/or RFQ as well as interview/demo questions
    • Creating a vendor evaluation scorecard as well as SLAs
    • Deciphering vendor due diligence packages and drafting contractual language
    • Saying ‘no’ to the vendors not selected - with feedback
    • Rolling out a successful onboarding/implementation plan

    This webinar will be chock full of tips that will help you effectively deal with both potential as well as existing vendors with your outsourced technology platforms.

    Register Today!

      We have a new poll! Tell us about how you work with fintech providers.

      Hi all,

      Thank you to all who participated in our last survey! We'll be releasing the results shortly. We have a new poll up that will take 30 seconds (6 questions) regarding how your FI views and works with new and innovative fintech providers in the industry. Would love to get your input and we will share the results with anyone who participates once the survey is closed. Thanks!

      Take the survey here.

        What will banks do with their tax gift?

        Changes to executive compensation, deferred tax assets and liabilities, foreign earnings and loss of interest deductions are just a few of the ways the new tax laws could impact financial institutions. Check out PKM Tax Partner, Pat Tuley’s feature in Bank Director to hear more:


          Exclusive Webinar: How OnPoint Turned Its Website Into a Digital Branch

          Today, the CEO’s of most financial institutions are asking Marketing, IT, and eCommerce the same question: how can we drive more people to our website AND transform it into a digital branch?

          Join us for an exclusive webinar to learn how OnPoint Community Credit Union, a $4.9 billion financial institution in Portland, Oregon, did just that.

          We’ll discuss how OnPoint was able to get their website to deliver a better experience around support and product related questions, as well as large events like online banking conversions.

          You’ll gain key insights into:

          • How to get more people to your website
          • How to significantly increase the time on site
          • How to get more consumer self-service from your site
          • How to drive more leads to your branches, call centers, and specialists

          Register Here Today


            Get a free sneak peek of what your banking policy, procedure, and product manuals should look like.

            Let us show you how to make your policy, procedure and product information easy to find and understand for branch and call center staff.

            Schedule Your Complimentary Content Assessment

            Your front-line staff is drowning in information. This is counterproductive — both for your customers or members waiting on hold and for your bottom line.

            SilverCloud can help you turn your product, policy and procedure manuals around so that they are a go-to resource for your customer service team.

            Here’s how to get a content assessment:

            • Let us know you’re interested and we will schedule a 20-minute call to go over your main challenges and pick the policy or procedure you want to focus on (i.e. opening a business account or an IRA).
            • Next, our content specialists will take your policy or procedure content and re-architect it based on best practices that are proven to improve the search as well as your front line staff’s understanding.
            • When it’s complete, we’ll deliver your newly architected content and discuss the results with you.

            Schedule your Complimentary Content Assessment today.

            Any questions? We're happy to help!

            The SilverCloud Team


              What is all the hype about CECL?

              What does CECL mean? - The Financial Accounting Standards Board (FASB) issued the final Current Expected Credit Loss (CECL) standard on June 16, 2016. After the financial crisis in 2007-2008, the FASB decided to revisit how banks estimate losses in the Allowance for Loan and Lease Losses (ALLL) calculation.

              Read attached if you are interested in simplifying CECL.

                10 Questions to Ask About Your Bank/CU's Web Design Project

                Does your bank or credit union need a new website? If so, you may be wondering where to start or how to begin. This 16-page eBook will help you get your project rolling and assist you in determining the most important questions to consider when planning for the launch of your new website.

                In this eBook, we discuss what questions you should ask and why they are important. Questions include:

                • What are your objectives?
                • Does your website represent your brand?
                • What is your SEO strategy?
                • What is your conversion strategy?
                • How will website traffic be measured?
                • How will social media be integrated?
                  ....And many more!

                Download the eBook here!

                Any questions we missed? Let us know! Comment below or email me at We're always looking to improve the resources we offer the Bank/CU community.


                  FinTech Companies Know Who Your Best Customers Are - Do You?

                  The classic mistake that Banks and Credit Unions make is assuming that their financial reports are all they need for Corporate Performance Management (CPM).

                  This chart is a view of a bank’s cumulative customer profit.

                  20% of the customers typically provide 100% of the bank’s total profit.

                  30% provide incremental profits and the bottom 50% are losses.

                  In addition to financial reporting, budgeting, and forecasting, CPM enables you to monitor and manage business performance down to the instrument and customer level.

                  FinTech companies have figured this stuff out and are chasing the top 20%.

                  If you are interested in what Banks and Credit Unions are doing to figure out who their most profitable customers are, please sign up for the webinar entitled, "Making Dollars and Sense of Your Data" sponsored by CBANC.

                    Cloud-Based Analytics for Banks in the Era of Data Hackers

                    One of the coolest things about the online dating site eHarmony is that it collects 29 different data points about each participant. Based on sophisticated algorithms, it will then match your scores with that of other participants that have similar scores. The odds of success of finding your match, according to eHarmony, are greatly increased.

                    Likewise, a CRM being loaded with instrument level profitability and activities is a treasure trove of information for data hackers and identity thieves. Even if the profile does not have all 29 facets of your financial profile, these crooks can do great damage with just some of the information.

                      [FREE] Educational Webinar: Making Dollars and Sense of Your Data

                      **Join CBANC Education and Solver for a free webinar on May 23rd at 11AM CST. **

                      Corporate performance management is the area of business intelligence involved with monitoring and managing your bank or credit union's performance according to key performance indicators. These indicators have a daily effect your financial institution due to evolving trends such as economics, technology, and your customer base.

                      Solver, Inc. joins us to share their expert knowledge on these trends, the metrics associated with them that affect your institution, and solutions for your FI to consider as you look to the future.

                      Daniel Havey of Solver, Inc. will cover:

                      • What economic trends are important to financial institutions today and as they look to the future
                      • The pain points for financial institutions as it relates to Corporate Performance Management (CPM) and Business Intelligence (BI)
                      • Key Performance Indicators (KPI) and metrics specific to financial institutions, why these are important, and how they are best measured/analyzed in a modern BI/CPM solution
                      • What best-in-class institutions are doing to use CPM/BI to prepare for the future and handle the items covered in this session

                      REGISTER HERE

                        Enterprise Budgeting on Cloud for Banks

                        The Cloud is coming! Are you prepared? I read a story once about a land that was going through a drought, famine, and warfare. After a momentous battle, a leader told one of his lieutenants, “Go up now, look toward the sea.” So the lieutenant went up and looked and said, “There is nothing.” And the leader said, “Go back” seven times.

                        It came about at the seventh time, that the lieutenant said, “Behold, a cloud as small as a man’s hand is coming up from the sea.” And the leader said, “Go up, say to our adversary, ‘You had better flee this mountain, so that the heavy shower does not stop you.’” In a little while the sky grew black with clouds and wind, and there was a heavy shower.

                        Did you ever get the sense that Banks and Credit Unions are looking out over the vast competitive landscape and saying to themselves that they don’t need Cloud? They say to themselves, “It is too risky. We want to do and own everything ourselves. This Cloud stuff is just a fad!” Try telling that to Sears as they are facing the end due to competitors like Amazon, the leading Cloud retailer.

                        (download document to read more)

                          Performance Management Tools for Banks

                          What is Performance Management? According to the Harvard Business School, performance measurement focusses on four main areas:

                          • Communicating with external investors to ensure that a firms' securities are fairly priced and that they are able to access capital
                          • Measure and evaluate a firms' economic performance
                          • Improve resource allocation and strategy implementation within a firm
                          • Build accountability for performance through effective external and internal governance

                          (download document to learn more)

                            How Excel Reporting for Banks has Evolved

                            Origins: I met Harold as my new boss in 1989 when I became Controller for a small subsidiary of a bank. At the time, I was a Lotus 1-2-3 disciple. I was great at writing macros and spitting out reports. The one thing I hated about Lotus, however, was its poor printing capabilities.

                            Harold introduced me to Microsoft Excel and its ability to set and preview the print area made me convert overnight. Harold said he loved the ability to type numbers into Excel every month, so he could get a good feel for the financials.

                            Benefits: Some of the many other benefits of using Excel are being able to enter data from multiple sources (General Ledger, Loans, Deposits, etc.), putting report development into the hands of bankers, being able to share the reports with others, and Excel’s ease of use.

                            (Download document to read more about How Excel Reporting for Banks has Evolved.)

                              Forecasting Methods for Banks

                              Have you done this? – According to Nasdaq, the consensus Earnings per Share (EPS) forecast for Bank of America for the years 2017, 2018, and 2019 is $1.73, $2.03, and $2.19 respectively. How did they come up with these numbers? If I told you that an analyst for Nasdaq went to the corner fortune teller and asked them to divine the numbers, you would laugh at me. Or if I told you that they called three different gas stations for their price of gas for their research, you would say that the information was irrelevant.

                              According to Gary Giroux’s doctoral thesis entitled “Financial Forecasting in Commercial Banks - an Industry Survey,” the AICPA defines financial forecasting as:
                              ... an estimate of the most probable financial position, results of operations, and changes in financial position for one or more future periods. . . based on management's judgment of the most likely set of conditions and most likely course of action.

                              Probably the most import piece of this definition is the most likely course of action taken by management. A forecast is not a passive event. It is the result of management’s plan of attack that will result financial outcomes. Believe me, Bank of America has a laundry list of action items in order for them to achieve their EPS forecast.

                              (Download document to read more about Forecasting Methods for Banks.)