Competing with the Gigantosauruses and Digitalbatrosses

I know you’re thinking that this isn’t a great analogy because dinosaurs are extinct, and an “albatross” is a psychological burden that feels like a curse. But gigantosauruses are (OK, were) huge, powerful animals (like the Big Tech companies) and albatrosses are one of the fastest species of animals, flying at nearly 80 miles per…

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What’s in a Name?

Customers and bank employee reviewing account benefits at desk.

By James Mason My friend and her six-year-old daughter were listening to music. Her daughter said that she’s never heard the song playing and that it was “weird,” so my friend said, “This was a popular song when I was a teenager in the ’90s.”  Her daughter replied and said, “Oh. You mean in the…

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The Big Tech Threat (Opportunity?)

piggy bank sitting on a laptop keyboard

In November 2019, Google announced that it was going to launch a checking account. The announcement elicited the typical frenzy in the press about how the Big Tech company and its fellow Gigantosauruses were going to put traditional banks out of business. But — surprise, surprise—that wasn’t the game plan.  The plan was to partner…

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Inside the Digital Bank Insurgency of 2020

The pandemic should get a lot of the credit for this, but 2020 was a good — no, make that a great — year for challenger banks and the broader group of digital banks. At the beginning of 2020, just 3 percent of U.S. consumers considered a digital bank to be their primary bank. By…

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Is Your Financial Institution Feeling the Burn?

Building Exterior in sunlight

When the first so-called “challenger banks” like Simple and Moven appeared on the scene around 2010 they were heralded as “disruptors” that were going to put traditional banks and credit unions out of business. Why? The asserted logic was that they provided a better customer experience, were more customer-friendly in terms of pricing (i.e., no…

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FI FOCUS: CS Bancshares, Inc.

State Bank customer service representatives Lisa Hobbs, Vicki Posch, Terra Allen, and Shelley Tate show off the bank’s new checking account features. For years, Chillicothe State Bank, State Bank of Missouri, and The State Bank have passed along a rich tradition of community banking, service, and values to residents of five cities in North-central Missouri. …

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The Profitability of the Average Checking Account

Maintaining a customer’s checking account costs your financial institution money. The American Bankers Association estimates the annual cost to a bank to maintain a checking account is between $250 and $400 per year.  For community financial institutions with less than $5 billion in assets, the average according to other researchers is closer to $250 to $300.

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