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certain asset size was at least “somewhat important.” Within that group, 37% felt it was “critically important.” (The feature story on page 20 has comments from several bankers reflecting this view.) Survey co-author Joe Cady, managing partner of CS Consulting, notes the majority of benefits from economies of scale are realized when a bank reaches $100 million to $300 million in total assets, according to a 2012 FDIC study. He cautions that simply growing an inefficient institution means banks hurt their value at a faster rate than before. In fact, as the report notes, institutions often become less efficient as they grow.

Impact of technology Since passage of the tax reform legislation, many banks have indicated they will use increased after-tax earnings for bonuses, salary increases, and stock buybacks. Many also will use at least some of the money for upgrading technology. This dovetails w ith the f inding in which 66% of respondents agree they “need new strategies, lines of business, and methods to compete effectively.” Technology plays a role in that. Indeed, 68% of the bankers say they are currently losing business to online-only lenders. Further, 81% anticipate losing business to such fintech disruptors in five years. Not surprisingly, 91% of the respondents say their bank’s technology budget will be

higher this year than last (59% “slightly higher” and 32% “significantly higher”). Some technology projects under way are shown in the infographic below, and are described more fully in the report. The full 32-page report can be viewed at

Entry deadline near for Banking Exchange’s “20 under 40” awards


anking Exchange launched i t s f i r s t a n n u a l “ 20 U n d e r 40” awards program in early February. Twenty noteworthy nextgeneration bankers will be profiled in a special report in the magazine’s June 2018 issue. Nominations are due by mid night, April 22. Nominations can come from anyone and bankers can nominate themselves. Nominations will be evaluated by a panel of judges to include Banking Exchange editors, working and retired bankers, and others knowledgeable about the industry. For more program details and to submit a nomination, go to



65% Cyber defense

70% Using artificial intelligence

55% Onboarding/digital account opening 52% Lending platform/loan processing

46% Cloud infrastructure 46% Core conversion

March 2018



Banking Exchange March 2018  
Banking Exchange March 2018