Kentucky banker magazine november 2015

INSIDE

The Real Consequences of Dodd-Frank page 7 Halloween Costumes page 16 Holiday Party Time page 22

November 2015

DON’T LET THE BIG ONE GET AWAY!

The Bankers’ Bank can help you reel in that big loan!

When your customer has borrowing needs that exceed the capacity of your bank, partnering with the Bankers’ Bank enables you to retain valuable business and continue to serve as the primary bank for your customer. Let our highly skilled loan professionals help you reel in that big loan.

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Van Davidson

John Clark

Derek Hetherington

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EMAIL: jclark@bbky.com

EMAIL: dhetherington@bbky.com

502-382-0460

800-248-3229

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OFFICERS

BOARD OF DIRECTORS

Chairman Mr. Louis Prichard Kentucky Bank

Mr. Bill Allen Bank of the Bluegrass and Trust Co.

Mr. Glenn Meyers Kentucky Federal Savings & Loan Association

Mr. William Alverson Traditional Bank, Inc.

Mr. Michael Mineer Citizens Deposit Bank & Trust

Mr. James W. Beach Peoples Bank & Trust Co.

Mr. Dale Sights Field & Main Bank

Mr. J. Wade Berry Farmers Bank & Trust

Mr. Thomas J. Smith, III American Bank & Trust Co., Inc.

Mr. W. Fred Brashear, II Hyden Citizens Bank

Mr. Ryan Curtis Steger Town Square Bank

Ms. Lanie W. Gardner First Southern National Bank

Mr. John T. Taylor PBI Bank

cover photo by

Mr. Gordon Kidd United Cumberland Bank

Mr. Jed Weinberg Bank of Hindman

Sheila Parke “Balloons & Tunes”

Vice Chairman Mr. Michael H. Mercer First Security Bank of Kentucky Treasurer Mr. Timothy E. Barnes Hometown Bank of Corbin Past Chairman Mr. H. Lytle Thomas Heritage Bank, Inc.

from scenes of kentucky photo contest

KENTUCKY BANKERS ASSOCIATION STAFF Ballard W. Cassady Jr. bcassady@kybanks.com President and CEO Debra K. Stamper dstamper@kybanks.com EVP / General Counsel & Director of Compliance Matthew E. Vance mvance@kybanks.com Chief Financial Officer Selina O. Parrish sparrish@kybanks.com Director of Vendor Solutions Paula B. Cravens Sturgeon pcravens@kybanks.com Director of Education Solutions Josh Fischer jfischer@kybanks.com Director of Communications Managing Editor Kentucky Banker Miriam Cole mcole@kybanks.com Executive Assistant Paula Cross pcross@kybanks.com Education Services Coordinator

Jamie Hampton jhampton@kybanks.com Education Services Coordinator

John P. Cooper jcooper@kybanks.com Legislative Solutions

HOPE of KENTUCKY

Natalie Kaelin nkaelin@kybanks.com Billie Wade Assistant General Counsel bwade@kybanks.com Executive Director Michelle Madison mmadison@kybanks.com KBA INSURANCE IT Manager SOLUTIONS Lanie Minton lminton@kybanks.com Administrative Assistant

Chuck Maggard cmaggard@kybanks.com President & CEO

Tammy Nichols tnichols@kybanks.com Finance Officer and Asset Manager, HOPE & KBA Convention Coordinator

Lisa Mattingly lmattingly@kybanks.com Director of Sales & Service

Katie Rajchel krajchel@kybanks.com Staff Accountant Yvonne Savage ysavage@kybanks.com PAC Services Coordinator Angie White awhite@kybanks.com

Sponsorship Relations

Steve Whitlow swhitlow@kybanks.com Systems Engineer

Tim Abbott tabbott@kybanks.com Account Representative Brandon Maggard bmaggard@kybanks.com Account Representative Donna McCartin dmccartin@kybanks.com Benefit Support Specialist Audrey Whitaker awhitaker@kybanks.com Insurance Services Coordinator

Story Idea? Questions? Contact Josh Fischer, Kentucky Banker Managing Editor. Call 502-736-1283. Email: jfischer@kybanks.com Kentucky Banker magazine is a monthly periodical publication of the Kentucky Bankers Association. Published in Louisville, KY, USA Contact the KBA: 600 W Main Street, Suite 400, Louisville, KY 40202. Phone: 502-582-2453 Fax: 502-584-6390 www.kybanks.com

One Voice, Unifying Banking in the BlueGrass Welcome to the KBA, a nonprofit trade association that has been providing legislative, legal, compliance and educational services to its member institutions since 1891. KBA’s directors and staff work together with its members to make the financial services industry a more effective and successful place to work. The strength of the KBA is bankers unifying as an industry to speak as one voice.

Mission Statement The purpose of the Kentucky Bankers Association is to provide effective advocacy for the financial services industry both in Kentucky and on a national level; to serve as a reliable and responsive source of information and education about areas of interest to the industry; and to provide a catalyst and forum for collective industry action.

The KBA does this in four ways:

1. Government relations

and industry advocacy

2. Information interchange

3. Education

4. Products and services

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Call 502-736-1283 for more information

WORKOUT LESSON #1: Demand a Release of Claims!

by Eric Jensen

Foreclosing on commercial loans can be a dicey proposition these days, with banks often being greeted by lender-liability counterclaims alleging that borrowers and guarantors were fraudulently induced into executing loan documents and otherwise treated unfairly along the way by their lenders.

early in his opinion, “[t]he contracting parties…clearly acknowledged and affirmed for the third time in July of 2010 their respective obligations under the note and guaranties, and fully released any and all claims...in connection with the financial transactions relating to the project [up to that point].”

A recent, exhaustive ruling by the U.S. District Court in Louisville shows a potential way out of such quagmires.

In a 58-page opinion issued this past July, Senior District Judge Charles R. Simpson III in PNC v. Seminary Woods, LLC, et al., Case No. 3:13-cv-297, dismissed all but one of the borrower’s and guarantors’ numerous claims. In many respects, this result was made possible by the bank’s inclusion of comprehensive release language in each of several amendments to the original loan documents.

Importantly, Judge Simpson also concluded that comprehensive release language in loan amendments was sufficient to find that several guarantors had waived claims under the Equal Credit Opportunity Act and Regulation B. In those instances, the bank was alleged to have required spouses of guarantors to sign separate guaranties in 2006 without determining if the husbands’ assets “alone sufficed to support their limited guaranty obligations.”

The Court also emphasized that the bank’s waiver of loan defaults when it negotiated modifications in 2009 and 2010 was sufficient consideration for the all-encompassing release of any ECOA/Reg B claim flowing from original execution of guaranties in 2006.

Releases executed by sophisticated business entities and individuals in subsequent loan modification documents have the very real potential of blocking claims based on matters as simple as alleged breaches of contract and/or breaches of the duty of good faith and fair dealing, as well as more problematic claims based upon alleged fraudulent inducement, fraudulent omission, negligent misrepresentation, and ECOA violations.

In the case before Judge Simpson, the original loan was documented in April 2006, and as subsequent amendments/modifications to the original terms were agreed upon, the bank included boldfaced release language (drafted by Morgan & Pottinger) in the documentation. As pointed out by Judge Simpson

Negotiating a comprehensive release in amendment/ modification documentation – as a quid pro quo for granting a borrower additional time and/or means to meet its obligations – obviously cannot prevent the filing of a vexatious counterclaim in a bank initiated foreclosure action, but doing so is nevertheless highly advisable because the presence of release language can only help any effort mounted to obtain summary dismissal of such a counterclaim.

M&P is a leading banking and finance law firm representing financial institutions, businesses and individual clients throughout Kentucky and Indiana.

MorganandPottinger.com Eric Jensen is a shareholder at Morgan & Pottinger, P.S.C.

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CHAIRMAN’S CORNER

How You Think is Everything

O

“Always be positive. Think success, not failure.”

ne of my favorite presidents was Teddy Roosevelt.

Among U.S. presidents, he truly stands out. He is the only one to win both the Medal of Honor and the Nobel Peace Prize. One of his most notable quotes that we should all appreciate greatly is: “Those who think they can and those who think they can’t, are both right.”

In today’s banking environment, thinking positively can be a daunting task. Regulatory burdens are overwhelming, margins are thin, the economy is slow, and unregulated nontraditional financial providers are taking our market share.

We could add so much more to the list. In response to these challenges, the easy thing would be to throw up our hands in frustration and resist or delay dealing with these, basically assuming the position that there is no solution.

Based on our specific bank cultures and strategic goals, we may need to analyze the benefits and risks of various lines of business such as insurance or, if we have Trust power, growing our Trust and Investment Management business.

Perhaps, even warehousing residential real estate mortgages would be an option. These decisions, obviously, should be made after careful open minded analysis.

Let’s not play defense in times like this, let’s do the opposite. Let’s look for opportunity. Let’s be more entrepreneurial. Recently I attended two or three meetings with various regulators. In essence I communicated to them that under the current regulatory environment, we as bankers are being put in a position of making “defensive” decisions.

In my experience, very few banks succeed by playing defense. We need to stop being defensive, and start playing offense.

Barbara Fredrickson, a psychology professor from the University of North Carolina at Chapel Hill, has written extensively on the subject of “positivity” and its relationship to business.

In her research, she discovered that those who think positively have a greater capacity to absorb new information. By doing so, the person enhances his or her ability to analyze, and thus enables the person to more successfully address and resolve issues.

Take, for example, the Qualified Mortgage rule. Many of us in the industry have heard that, because of its restrictions and the potential for legal liabilities if we step “out of that box,” bankers have made a decision to virtually stop making mortgage loans outside of that scope or to even stop all together.

I’m aware that other banks, after analyzing alternatives with an eye toward a solution, have found ways to make these loans and to do so in a way that allows them to take care of their customers, and still limit potential liability. The customer benefits and so does the bank.

There are plenty of strategic potential partners in our banking space who have developed a multitude of products and services that we can explore. Many of these can be extremely helpful in helping us play offense, whether that be through marketing through social media, by discovering new and efficient ways to deliver our more traditional products and services.

The KBA and its representatives can be an extremely valuable resource to us in this regard. The staff and board have taken the time to perform due diligence on these vendors and partners. I encourage us to explore what they have to offer and how they can create value for us as bankers. By looking for these “positive” steps, and by working with the KBA, we can continue to do the things that have made us successful banks for over two hundred years.

One last quote from Teddy Roosevelt: “Believe you can and you’re halfway home.” With the help of the KBA and our own initiatives, we can get all the way home.

There is no question that fee income from overdraft programs and other sources has been reduced significantly over the last six or seven years, as a result of regulatory focus and attention on this area of banking services. In many cases, that revenue source has been reduced between thirty to fifty percent. Many of us bankers may think there is no way to replace that income. We may think, because of U.D.A.A.P. and the overreaching tentacles of the Consumer Financial Protection Bureau, that there are no other “permissible” alternative sources of revenues to offset the above mentioned reductions.

NEXT MONTH: Decide Upon Your True Dreams And Goals

Louis Prichard KBA Chairman

November 2015 | 5

WHO WOULD YOU RATHER HAVE ON YOUR TEAM? THIS GUY...?

OR THE EXPERT...?

WE KNOW BANKS.

Let the experts at Kentucky Bankers Insurance Solutions review your insurance portfolio today!

Please visit kybanks.com or give us a call at 502.582.2453

STRAIGHT TALK

The Real Consequences of Dodd-Frank

O

n page 10 you will read a piece Curt Steger (Past President & CEO, Commonwealth Bank) wrote entitled Have You Ever? I Have. It illustrates, through profound personal experiences, the difficult and unjustified consequences that Dodd-Frank’s overbearing regulations have laid at the feet of our community banks.

Have you ever wondered: “How in the world did our customers get lost in all of this?” I have.

Have you ever wondered: “Who can help us get back the kind of banking our customers need and deserve?” I have.

The answer to Mr. Steger’s last question is easy, WE CAN. These consequences are nothing more than academic exer- We can help ourselves get back to the kind of banking that cise for those in Washington who advocate for regulatory empowers you and your loan officers to help your customcontrol. However, the overwhelming avalanche ers achieve their aspirations and face the chalof regulations stemming from Dodd-Frank have Dodd-Frank lenges that life sometimes brings us. created a real burden in the lives of his long“It arrogantly Right now banking regulations tie our hands, time customers. Like many of you, Mr. Steger had customers who were like family to him; presumes that we and families, businesses and communities sufand, like any good family member, he wanted do not know our fer the consequences. I am sure you have your the best for them. When his frustrations with communities, and own examples where, before Dodd-Frank, you this dilemma became too much, he wrote this were able to discern for yourselves when and wonderful meditation on the interactions he had posits that regu- how you could serve your customers. with his extended family as a result of Dodd- lators 600 miles Frank. away can best tell The message Dodd-Frank communicates to the us who are and community banker is: we do not trust you to Using a cause and effect rhetorical strategy serve your customers. It arrogantly presumes (Dodd-Frank being the unspoken cause) he how we serve our that we do not know our communities, and posasked the question “Have you ever…” pairing customers.” its that regulators 600 miles away can best tell the question with powerful individual stories. us who are and how we serve our customers, He then made those stories real by answering preventing us from helping our community when in need. simply, “I have.” Here are a few of the most moving to me: That does not sit well with me. It did not sit well with Mr. Have you ever taken loan documents to your customer’s Steger. How does it sit with you? house for signatures because one of those customers was in If it concerns you like it concerns me, then I invite you to the final stages of cancer? I have. send me your stories of real-life experiences where DoddHave you ever had a customer say: “Both of us have lost Frank regulations have interfered with your ability to help our jobs and we don’t know what we are going to do, can the your customers. We will forward your stories to Congress, bank helps us?” I have. sharing with your Representatives the very real consequencHave you ever had the feeling that time spent on excessive es that Dodd-Frank regulations place upon your customers. regulations for compliance takes time away from taking care Keep track of stories where Dodd-Frank regulations prevent you from giving maximum service to your customers, and of customers? I have. continue to share them with me. We want to put a name and Have you ever thought: “Who changed all of the banking a face to the problems Dodd-Frank causes those we serve.

I once knew? Who had the power to do that and for what As Mr. Steger writes, “we are the only organized voice” our reasons did the banking industry fail in keeping that from customers have. happening?” I have.

Ballard Cassady KBA President & CEO

Send me your stories. bcassady@kybanks.com November 2015 | 7

Election Day W

Do you know where your responsibilities lie?

hen my daughter turned 18, she was so proud that she was finally able to register to vote. When the next election came around she asked me to help her understand how to determine which candidates were the best. She was amazed at how many young people she knew were voting, if at all, based upon things like names they liked or whether the candidate looked nice. I was thrilled that my daughter wanted me to help her and, honestly, I felt particularly qualified to do so because my work with the KBA puts me in a position to meet various politicians and understand some of the issues. So, we sat down to look at the races, the candidates and the issues.

a society, so ready to shirk the simple responsibility of voting? The fault has to lie with my generation and older because it is our responsibility as educators, mentors and parents to teach the next generation about the various rights and responsibilities that are associated with the privilege of living as a citizen of the United States of America. Additionally, the turnout for some elections is so low that we cannot ignore the poor example that we set. How did this happen?

Last month, at a used book sale, I found an 1889 edition of Civil Government of the United States and the State of Kentucky, a Text-Book for Schools, by Will P. Hart. The dedication was written “To the youth of Some of the more high profile races were easy. our beloved country, in whose hands its future destiny I showed her how to get information from the candilies.” That was enough to hook me. The Preface goes dates’ websites and issue polls. We talked about which on to explain the importance of fair govissues were important to her and looked ernment to a civilized society and the at their experience in those areas. Then importance of an individual’s knowlwe got to the lower profile races, like edge of how that government operates judicial elections. And that is when the in order to live as an “intelligent citilesson fell apart. First, as an attorney, I zen.” Further along the book goes on have a philosophical disagreement with to proclaim that voting is not just a right judicial elections. I think that the pubbut a responsibility to our structure of lic is typically unable to select the most government and existence. Our country qualified judicial candidate and, further, is premised on the will of the people, I believe that the law should be applied as determined by majority rule. So, can without public persuasion. Beyond that, we really be surprised when our system there is the very real problem that there was very little public information refails to reflect the will of the people— garding the candidates. The amount of if the election turnouts that created the work that we had to put in researching powers in that system are well below a these races seemed unreasonable and majority of those entitled to vote? we both were ready to throw our hands up and give up, except I kept thinking …don’t we have Encourage your family members, employees, friends a responsibility as American citizens to do our best to and neighbors to vote. Remind them that it is a duty, educate ourselves and vote for the candidate that we as well as a right. In 2016 we will be electing a new believe will do the best job for our country? president; it may be one of the most important elections in modern times. Your vote counts. Research the canNow, every election cycle, I think about that responsididates and remember that in some countries, and not bility. I am particularly disheartened when the reported turnout of voters is so low that you have to wonder so long ago in our country, people were willing to risk what our citizenry thinks their duty is. Why are we, as their lives for this right and duty.

DEBRA STAMPER kba evp & general counsel November 2015 | 8

Let me know what you think. dstamper@kybanks.com

KENTUCKY BANKER

2015 KY Election Results/Voter Turnout REGISTERED VOTERS 3,201,8520

BALLOTS CAST 982,25

VOTER TURNOUT 30.68%

GOVERNOR / LIEUTENANT GOVERNOR VOTES Matt BEVIN / Jenean HAMPTON (REP) 511,374 Jack CONWAY / Sannie OVERLY (DEM) 426,620 Drew CURTIS / Heather CURTIS (IND) 35,597 TOTAL 973,591

PERCENT 52.52% 43.82% 3.66%

SECRETARY OF STATE Stephen L. KNIPPER (REP) Alison Lundergan GRIMES (DEM) TOTAL

VOTES 470,894 493,204 964,098

PERCENT 48.84% 51.16%

ATTORNEY GENERAL VOTES Whitney H. WESTERFIELD (REP) 477,366 Andy BESHEAR (DEM) 479,567 TOTAL 956,933

PERCENT 49.88% 50.12%

COMMISSIONER OF AGRICULTURE VOTES Ryan F. QUARLES (REP) 563,013 Jean-Marie LAWSON SPANN (DEM) 374,077 TOTAL 937,090

PERCENT 60.08% 39.92%

*Election Results and Voter Turnout (unofficial) courtesy of Kentucky State Board of Elections.

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KENTUCKY BANKER

Have You Ever? I Have.

by Curt Steger, Past President & CEO

Commonwealth Bank, FSB

Mount Sterling, Kentucky

Have you ever taken loan documents to your customer’s house for signatures because one of those customers was in the final stages of cancer? I have.

Have you ever had a customer sit and talk to you for over an hour about their spouse committing suicide? I have.

Have you ever sat in an office with a married couple where one of them found out the other had taken the money from an advanced construction draw for drugs they needed? I have. (That spouse would later die.)

Have you ever let a customer that was four months behind on house payments sell their paintings and crafts in your bank’s lobby so they could try and make a house payment? I have. (And they kept their house!)

Have you ever had a customer ask you: “Can you help me figure out a way for my son/daughter to go to college; they want to go so bad?” I have.

Have you ever had a mother come into your bank late on a Friday needing a $500 loan to keep her daughter out of jail, and your staff stays after hours to process the application? I have.

Have you ever had a customer say: “Both of us have lost our jobs and we don’t know what we are going to do, can the bank helps us?” I have.

Have you ever had spouse after spouse come to you and say: “We’re getting a divorce, what am I going to do? Can you help me?” I have.

Have you ever had a struggling church that is behind on its payments to the bank come and say: “We need to replace our furnace, it’s not working. What can we do?” I have.

Have you ever had a customer at the Lexington airport, trying to fly to Texas for work, call you on a Sunday at home and say: “I need for you to talk to this ticket agent about my checking account at the bank?” I have.

Have you ever had hundreds and hundreds of customers come to you and say: “My son/daughter is on the _______ team. Can the bank help us with doing _________?” I have.

Have you ever walked out in your bank lobby and said: “Let’s go fishing” to one of your customers who lives in another county, and whose baseball cap looks like it has at least a quart of oil in it, and see the smile on their face when they say, “I just got back from fishing seven hours down eight miles of Elkhorn Creek for small mouth and Redeyes and we must have thrown a 100 back?” I have.

Have you ever found yourself on a lawn mower on a Saturday morning praying for a customer who was going to bury her 37-year old daughter that same day, and you wanted to be there at the private family service because you had also been at her husband’s funeral when he had died unexpectedly? I have.

Have you ever found yourself so thankful that that same customer drives 20 miles to still bank with you even though she had moved to the next county years ago? I have.

Have you ever had a father tell you that on a delinquent loan he made in order to pay off his daughter’s “cold checks” that she had stolen from his checkbook in order to buy drugs: “I’m going to pay you because it is a debt of honor?” I have.

Have you ever gone out back of your bank to a parked car to have a customer sign some documents because the husband didn’t like to be around people? I have.

Have you ever felt pride when a father comes to you and says: “Thanks for helping us get Jeff through college, we don’t know how we would have done it without your help?”

I have.

And have you ever seen a “Jeff” in your town have children and stay in the community as a productive citizen and be in his hometown for his mother when his father passes? I have.

Have you ever had a customer drive 20 miles from the next town to bank with you because the husband says: “The bank president never fails to come over and speak to me?” I have.

Have you ever had a customer drive over 30 miles every week to deposit their payroll check and have both of them tell you they: “wouldn’t think of banking anywhere else.” I have.

Have you ever felt part of your customers’ lives and thought both you and your customers felt like extended family?

I have.

Have you ever had the feeling that time spent on excessive regulations for compliance takes time away from taking care of customers? I have.

Have you ever thought: “Our policies and procedures don’t fit this customer’s specific needs, but is there a way that our bank can help them?” I have. continued on next page

November 2015 | 10

KENTUCKY BANKER continued from previous page

Have you ever thought: “Who changed all of the banking I once knew? Who had the power to do that and for what reasons did the banking industry fail in keeping that from happening?” I have.

Have you ever wondered: “How in the world did our customers get lost in all of this?” I have.

Have you ever wondered: “Who can help us get back the kind of banking our customers need and deserve?” I have.

Have you ever tried to make sense of it all and wondered: “Where did common sense go?” I have.

Have you ever thought: “Well, maybe it’s just me. I’ve gotten old. I must have been in banking too long and maybe nobody wants these things anymore. Maybe they’re not important to bankers, or our customers, anymore?” I have.

Have you ever wondered: “How can we get together as bankers and change things to make more sense again for our customers?” I have.

Well, have you ever…

Each of you as bankers has so many personal stories that make being a banker special. Our communities, our customers and our friends need us. They need us to stand up and

fight for them and their interests. We are the only organized voice they have. We shouldn’t shy away from the task that is in front of us.

It has been said: “Silence is the lack of freedom.” Being silent does no one any good, especially your customers. Speak up, my fellow bankers and friends, before it becomes too late to do so. If you don’t, no one else will; and I, for one, believe that what we do, and who we serve and help, is well worth the fight. When we fight, our customers win. When we don’t, most assuredly, others win.

Author’s Note: The “I have” part of this piece should not be confused with thoughts that I personally am somehow special; but rather that I, along with all of you, as bankers, have had the privilege and honor to be part of something that is special - our customers lives that they share with us daily. What a blessing it truly is, and has been, for me the past 37-plus years. May each of your careers be as rewarding as mine. Being a community banker has allowed me to receive far more than I have given.

Contact Tammy Nichols at the KBA for information: tnichols@kybanks.com

KENTUCKY BANKER

CFSB hosts Customer Appreciation Day CFSB’s Benton Banking Center recently held a Customer Appreciation Day. CFSB Team Members (Pictured L-R) Chase Bohannon, Russ Claborn and Jonathan Ellis cooked kabobs for customers to enjoy while conducting their banking business.

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KENTUCKY BANKER

Survey: More Using Mobile Deposit 54% of users do so at least once per month

WASHINGTON — One in seven Americans have deposited a check using a mobile device within the past year— up from one in eight Americans last year, according to a recent survey by the American Bankers Association. Of those who have used mobile deposit, 54 percent report using it at least once per month.

“Mobile deposit continues to attract more consumers because this bank service is incredibly convenient,” said Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments. “In the short time it takes to post an Instagram, you’ve deposited your check.” The annual survey of 1,000 U.S. adults was conducted for ABA by Ipsos Public Affairs, an independent market research firm, July 8-13, 2015. This is the second year the question was asked as part of ABA’s annual survey.

About the Survey These are some of the findings of an Ipsos poll conducted July 8-13, 2015. For the survey, a national sample of 1,000 adults aged 18 and older were interviewed by telephone.

Weighting was employed to balance demographics and ensure that the sample’s composition reflects that of the universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/- 3.1 percentage points 19 times out of 20 of what the results would have been if the entire population of adults aged 18 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

Fifteen percent of consumers replied “yes” when asked “In the past twelve months, have you deposited a check into your bank account by taking a picture of the check with your mobile device?” (82 percent said they have not, while 3 percent were unsure). Those who responded yes provided the following responses when asked “How often?”: Once per month – 27% (46% in 2014) Twice per month – 12% (23% in 2014) Three/or more times per month – 15% (11% in 2014) Less than once per month – 45% (19% in 2014) Unsure – 1% (1% in 2014) While the overall number of mobile deposit users increased this year, the number of people who utilized the feature at least once per month declined from 80 percent to 54 percent. Feddis noted that decreased use of checks—due in part to increases in direct deposit and electronic payments—likely contributed to this change.

“People are receiving checks less frequently, but when they do they’re increasingly turning to mobile banking to deposit them,” said Feddis. “Mobile has become a bigger part of how people interact with their bank, and we expect banks to continue to expand and enhance customer services available through mobile devices.”

November 2015 | 13

KBA VENDOR SOLUTIONS

TIB’s Agent Card Program Named KBA Vendor Solution KBA is pleased to announce that TIB’s Agent Card Program has been named a KBA Vendor Solution! TIB is a leader in helping community banks compete and win in the ultra-competitive Card Services arena. Consider the following: 1. Preferred By Community Bankers. One in every five community banks in America relies upon TIB for one or more aspect of their Card Services offering. It is one reason that TIB is the largest and most trusted bankers’ bank in the country.

2. Your Name & Brand. TIB’s Agent Card Program provides community banks with a range of competitive Credit Card products you can offer your customers and that can be branded with your bank’s name and logo.

3. No Risk. TIB’s Agent Card Program eliminates your risk. They service the credit and you collect your portion of the proceeds.

4. Rewards Program. TIB’s attractive Rewards Program is one of the most generous and flexible in the marketplace.

5. Stay Involved. TIB keeps you involved in the approval process. If a customer does not meet the approval standards, TIB will always contact you and try to work out a positive outcome for you and your valuable customer.

6. Your Partner. Never a competitor. Unlike so many other providers, correspondent banking is TIB’s only business. That means TIB will never cross-sell or compete for your customer.

For more information about TIB’s industry-leading Card Services Programs, please contact Selina Parrish at the KBA at (502) 736-1282 or sparrish@kybanks.com

BANK HAPPENINGS

Forcht Bank begins Clothing Drive 3rd Annual “Warm Hearts” Drive Began November 17, 2015

The general public is encouraged to drop off any new gloves, coats, hats, and scarves, sized infant to teen, at any of Forcht Bank’s 30 locations throughout Kentucky. Items may be dropped off between November 17th and December 31st.

All clothing will then be collected and delivered to School Resource Centers and other local charities for distribution to children in need beginning January 4, 2016.

“Helping the children in our communities stay warm during the cold, winter months is a priority for Forcht Bank. After the success of last year’s glove drive, we had requests for coats, hats, and scarves, so we decided to collect any new garment that would help kids stay warm,” said Forcht Bank President Tucker Ballinger. The bank will also donate $10 for every checking account opened during the clothing drive to purchase additional winter clothing.

November 2015 | 14

In 2014, Forcht Bank employees, customers, and the general public donated 1,930 new pairs of gloves, 2,342 hats, 477 scarves, and 260 coats for children in need. Forcht Bank also donated $5,600 to “Warm Hearts” in addition to the clothing contributions.

Forcht Bank is a Kentucky-owned community bank with approximately $1 billion in assets and 30 banking centers in 12 counties - Fayette, Jefferson, Boone, Grant, Madison, Taylor, Pulaski, Laurel, Whitley, Knox, McCreary and Green.

First Tennessee Correspondent Services offers a range of robust financial and business solutions to support community banks. When you work with First Tennessee, you’ll get the personal attention that’s made us a continuous provider of correspondent services for over 100 years.

First Tennessee Correspondent Services include:

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TALK TO A RELATIONSHIP MANAGER ABOUT YOUR BANK’S NEEDS. CALL 800-453-7686 OR EMAIL CORRESPONDENTSERVICES@FTB.COM © 2015 First Tennessee Bank National Association. Member FDIC.

KENTUCKY BANKER

PBK Bank Halloween Costume Contest For Halloween PBK Bank held a costume competition between branches to raise money for local Relay for Life efforts. Relay for Life is a fundraising walk for the American Cancer Society. PBK Bank asked its customers and community to make a donation to Relay for Life as a vote for the best costumed branch. The branch with the most donations won. The Hustonville branch Biker Chicks (pictured at left) were the victors.

PBK Bank Hustonville Branch Biker Chicks

PBK Bank Hwy 150 Branch Price is Right

November 2015 | 16

PBK Bank Hwy 27 Branch Three Blind Mice

KENTUCKY BANKER

Four Tips for Financial Institutions to Win Consumers’ Micro-Moments

by Andrew Bank, andrew@larky.com Life is not lived in years or days or even hours. Life is lived in moments. And right now, people all over the world are trying to make the most of every moment. As consumers increasingly rely on mobile devices for information, FI marketers can leverage these “micro-moments” to be there when their clients need them, and reap the rewards.

The old days of predictable, periodic media sessions have been replaced by numerous short bursts of digital activity throughout the day.

Sridhar Ramaswamy, Google senior VP The brainiacs at Google Think have defined a new term - “micro-moments” – and it has marketing professionals overhauling their approach to how they connect with consumers. What is a “micro-moment”? If you guessed that a micro-moment is a short window of time, you are correct. More than that, it’s a window of opportunity when your audience wants to know or do something – they have a need or a desire – and they reach for their mobile device. Google Think categorizes these scenarios as “I want” or “I need” moments such as: I want to buy…

I need to learn…

I want to know…

I need to go…

I want to do…

Each of these moments is in real-time, and the customer is intentionally seeking help or information. Usually, the customer is searching the Internet on their smartphone. Because the moment is so fleeting, and because people have such high expectations for fluid experiences, they probably don’t want to take time to navigate complex websites, talk with service people, move to their PC, visit a branch office, or make a phone call.

The consumer merely wants to know something RIGHT NOW. He or she might be shopping, waiting in line, sitting on a bus, dining at a restaurant. But wherever they are, they are trying to satisfy a need or desire. And that’s where you come in.

Why is this ground-breaking for banks? While most financial institutions have integrated some digital approaches into their marketing strategy (including mobile and online banking, email marketing, social media, search engine marketing), the savviest bank marketers are now analyzing their users’ daily routines to determine when those users might need the FI’s products, services, advice, or insights. Indeed, Amanda Rendle, HSBC’s global head of marketing for commercial and global banking markets, has created a new job title for some of her marketing team members. She calls them “customer journey engineers,” and they are working to pinpoint each moment when a connected consumer wants instant gratification for a need in the moment.

Your job is to identify the moments you want to win – or can’t afford to lose. For a financial institution, think about the moments when your users make pivotal financial decisions and then think about the outcomes you’d like to achieve, the behaviors you’d like to influence. continued on next page

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KENTUCKY BANKER continued from previous page

Here are four tactics financial institutions can use to win their clients’ micro-moments: Ask “WHEN?” Map your user’s journey and identify the moments that matter. When do users want to find financial information? Learn about your offerings? Make a purchase? When do they want to help themselves, and when might they want to talk to a human being? Start with the table above and add your own micro-moments, outcomes, and more of the details below.

Ask “WHY?” For each moment that you’ve mapped, put yourself in your user’s shoes, and imagine exactly why the user might need your help. What are his or her goals, needs, or aspirations in the moment?

Ask “HOW?” Anticipate Needs and Optimize Offers. Be there right when your users need you. Use context – time, location, and more – to anticipate your user’s needs and instantaneously satisfy them in the moment. Where are your clients when they need your help? What device are they using? Is it day or night?

Time for work or time for play? Are they retired or just starting their career?

And, how can your institution be most helpful in that moment?

How can you make your user’s life easier, more efficient, or more fulfilling? How can you help them save money or spend more wisely? What products or services can you offer to satisfy their needs or desires? And what technologies and content can you deliver to engage with them in relevant, meaningful ways?

Do they need auto loan rates when they arrive at the car dealership? Would they benefit from home loan rates when they meet with their Realtor? Are they looking for a discount when they go to their favorite retailer or restaurant -- and would they be more likely to use your credit or debit card if it offered just the discount they needed?

Measure the Moments That Matter. Then Iterate and Repeat.

The return on investment for a billboard or a radio ad is very hard to measure. But serving your clients in micro-moments is actually concrete and measurable. Giving users tangible offers (like discounts at local merchants) along with clear callsto-action (“Tap here to get pre-approved”) results in a traceable path and measurable results. Keep track of these results to gauge your micro-moment success. Start small and add more moments as you get smarter, or as software resources and capabilities get better.

Using context to anticipate needs and optimize offers will help you deliver personalized, meaningful, and relevant content to your users every time. When your financial institution delivers an informative, helpful, integrated experience for users – whether they’re in the branch, or during all of the micromoments throughout their lives – you show them that you’re there to address their needs in real-time, right when they need you most. You’re showing your users that you care about them throughout their lives, not just when they’re banking, and not just when they’re in the branch.

November 2015 | 19

BANKERS ON THE MOVE Barrett Coleman

Karin Buchanan

Community Trust and Investment Company is pleased to announce that Barrett Coleman has been promoted to Vice President, Portfolio Manager with CTIC’s Wealth and Trust Management (WTM) division. As a key member of the WTM Investment team, Mr. Coleman’s responsibilities include the research and selection of fixed income securities and managing individual client portfolios with an emphasis on institutions.

Kentucky Bank is pleased to announce that Karin Buchanan has returned to Paris as a Mortgage Originator.

Karin has been working with Kentucky Bank and its clients for 7 years, most recently in Georgetown, and has been in lending for 35 years. She is devoted to helping consumers obtain the right mortgage. She takes pride in creating an excellent customer service experience, working with clients to guide them through the loan process.

Adam Davis

Buddy Kittle

First Capital Bank is pleased to announce that Adam Davis has recently been named as the bank’s Senior Vice President & Chief Financial Officer.

First Capital Bank is pleased to announce that Buddy Kittle has recently been named as the bank’s President, Mortgage Lending.

Corey Beyerle

John Stratman

First Capital Bank is pleased to announce that Corey Beyerle has recently been named as the bank’s Senior Vice President, Bank Operations Director.

First Capital Bank is pleased to announce that John Stratman has recently been named as the bank’s Vice President, Treasury Management.

Kimberly Karst

Marc Prasch

First Capital Bank is pleased to announce that Kimberly Karst hhas recently been named as the bank’s Vice President, Human Resources.

First Capital Bank is pleased to announce that Marc Prasch has recently been named as the bank’s Senior Vice President - Retail Division.

David Hake

Linda Rumpke

Central Bank has announced the promotion of David Hake to Information Security Officer, Technology Services. Mr. Hake has been with Central Bank for three years; he began his career at the Bank as an Infrastructure Engineer before being promoted to Security Infrastructure Manager. David’s prior experience includes work as an IT consultant.

Traditional Bank announced the addition of Linda Rumpke to its Regional Board. Rumpke was recently named by Columbia Gas of Kentucky as the company’s new Director of Finance, resigning her position as Commercial Loan Officer and Senior Vice President with Traditional Bank.

Dave Ransdell

Mary Moorhouse

Traditional Bank is excited to welcome Dave Ransdell as a Commercial Loan Officer. Ransdell joins Traditional Bank with 23 years of banking experience. He will serve the bank’s Lexington market as part of the Palomar Banking Center team.

Mary Moorhouse has joined First Security Bank in a newly created position as Corporate In-House Counsel.

Moorhouse has over eight years experience in legal services and was most recently with Daymar College where she served as Director of Legal Services and Director of Benefit Administration and Associate Relations.

Want to announce a promotion? Email photos & announcements to Josh Fischer: jfischer@kybanks.com November 2015 | 20

BANKERS ON THE MOVE

Luther Deaton, Jr. Elected to ABA Board of Directors LEXINGTON - Kentucky Bankers Association past-chairman Luther Deaton, Jr. has been elected to the American Bankers Association Board of Directors. The election was made official at the business session held at the ABA Annual Convention in Los Angeles, California. In addition to being on the Board of Directors, Luther is Chairman of ABA’s 502(c)(4) FEAI-Financial Education and Advocacy Initiative.

In Kentucky Mr. Deaton is the Chairman, CEO and President of Central Bank & Trust Co. (Lexington) and CEO of Central Bank of Jefferson County. Both banks are longtime members of the KBA. The KBA is proud of Mr. Deaton’s accomplishments and his honorable representation of Kentucky banks; we know that he will represent our interests with esteem at the ABA board table.

Andy Parker has joined the bank as a Senior Vice President of Commercial Lending at our St Matthews Office.

President, CEO of First Security Set to retire

130 St. Matthews Ave • 502.479.7203 • www.wilsonmuirbank.com aparker@wilsonmuirbank.com • NMLS #1191900 Follow us on Facebook

M. Lynn Cooper is set to retire as president and CEO of Owensboro, Kentucky-based First Security Inc., effective Dec. 31, according to an Oct. 29 press release.

Mr. Cooper joined First Security as President and CEO of First Security Bank Inc. and the holding company in January of 2007. Mr. Michael Beckwith, current EVP and CFO, has been named president and CEO, replacing Mr. Cooper Jan. 1, 2016.

WMB is Pleased to Announce:

November 2015 | 21

KENTUCKY BANKER

Holiday Party Time DON’T LET RISKS TAKE THE FUN OUT OF THE FESTIVITIES

by Craig M. Collins, ccollins@onebeacon.com President, OneBeacon Financial Services

ered an extension of the workplace. Employees should not feel pressured to attend the party, and all invitations and announcements should stress that the event is opHoliday parties are a great chance for employees and tional and is not required for continued employment or other guests to come together, socialize, bond, and re- advancement. flect on the year’s accomplishments. The primary goal of any party is for guests to enjoy themselves, but careful planning is required to create an environment that ensures safety as well as fun.

Due to their infrequent nature, the liability risks of company-sponsored parties are often overlooked. Concerns such as liquor consumption, premises safety and security, discrimination and food borne illness are a few of the many issues that need to be addressed to help prevent over-indulgence, injuries or even harassment.

Not only could the pleasant atmosphere be ruined in a hurry, your bank could find itself liable.

To ensure the well-being of all who attend, it’s important to be aware of any potential liability concerns your bank may face if the event doesn’t go exactly as planned.

Additionally, policies that guide behavior in the workplace should apply to a party, including violence, harassment, discrimination and the general code of conduct. Avoid activities that promote physical contact, unwanted social pressure or inappropriate conversation, Guest Safety such as mistletoe or a game of Twister. And prior to the As with any event, the safety of everyone attending event, remind employees of proper party behavior and should be the number one priority. At a company spon- the standards to which they will be held. sored party, it’s important to note that any accidents or Management should also monitor employees’ behavior injuries may be considered work-related and could be throughout the event to ensure it conforms to company subject to workers compensation. Taking precautions policies. If activities stray beyond acceptable bounds related to venue selection, weather, security, and guest for a workplace environment, such as inappropriate disabilities may help avoid mishaps. dancing, prompt action should be taken. In this inIf you select a venue other than the bank, inspect it to stance, a manager could pull their colleague aside and ensure it meets your safety standards. Pay attention to address the incident before it becomes a bigger issue. the venue’s exits, emergency lighting, and flooring that If a complaint is made as a result of a holiday party, it might prevent slips and falls, particularly if bad weather should be taken very seriously. Treat the complaint like is possible. Inclement weather can also affect safe travel a workplace incident, documenting, investigating and to and from the party. If the event is outside of normal addressing the issue and parties involved. business hours, special considerations may have to be A strategy used to prevent poor behavior and impaired made to keep sidewalks and parking lots clear. decision-making is to limit alcohol consumption.

Emergency situations should also be reviewed for those Alcohol Service with disabilities who may require special attention. For example, if a disabled employee must use a wheelchair, One of the most important issues that should be adcheck that there is a safe way for him or her to enter and dressed at a party is whether alcohol is going to be navigate the event, and be prepared to deal with a safety served, and if so, which controls will be instituted. issue or concern.

Some companies have recognized the liability exposure that alcohol represents and have chosen to hold events Another factor in ensuring the safety of your guests is free of beer, wine or liquor. If it will be served, there are preventing harassment and discrimination. considerations that can help to limit potential problems.

No matter where your party is held, it may be considcontinued on next page

November 2015 | 22

KENTUCKY BANKER continued from previous page

In the party planning stage, develop guidelines for the management group and relay the importance of management to act as responsible role models. While formulating your menu, make sure there is plenty of food and of non-alcoholic beverage options available. Starchy and high-protein snacks will help slow the absorption of alcohol into the bloodstream, while salty foods should be avoided as they encourage more drinking. Instead of an open bar, consider passing out drink tickets to control the amount of consumption and enlisting the help of a professional to monitor tolerance.

event. When reviewing rental contracts, note any hold harmless or indemnity agreements that could release the vendor from liability and instead hold your company responsible for losses from situations over which you have no control.

Holiday parties are a time for celebration and appreciation, and everyone wants them to be memorable – but for the right reasons. Making smart decisions to provide a safe party environment can help ensure a healthy, happy holiday season.

To help prevent drinking and driving, stop serving alAbout the Author cohol well before the end of the event and provide an alternative form of transportation such as free cab rides. Craig M. Collins is President at OneBeacon Financial Services. He has more than 20 years of experience in Insurance the financial institution industry. To learn more about In addition to these safety precautions, it’s also im- OneBeacon Financial Services, visit www.onebeaportant to use vendors that carry their own insurance confs.com coverage in order to help manage the company’s liability. All catering firms, bartending firms, facilities or This article is provided for general informational purentertainers should be required to produce Certificates poses only and does not constitute legal or risk manageof Insurance (COI) with limits that protect your com- ment advice. Readers should consult their own counsel pany from damages. Firms or individuals that cannot for such advice. produce a valid COI should not be considered for the

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KENTUCKY BANKER

findCRA Honored as one of GLI’s Hot Dozen Companies Louisville, KY – findCRA is pleased to be chosen by Greater Louisville Inc.’s EnterpriseCorp as a “Hot Dozen” company.

Twelve of the region’s most innovative up and coming companies were honored on September 28th at Play Louisville.

The twelve companies were announced during the past three weeks leading up to the event via Twitter. “findCRA is thrilled to be selected as a Hot Dozen company in 2015, joining a very impressive group of local innovators. We know this is an important recognition of the progress we’ve made in Louisville and a vote of confidence in our future growth. We celebrate this honor with our team, our network of nearly 75 community and bank partners and our other supporters who have been instrumental to our success,” said Ben Loehle, CEO and Co-Founder of findCRA. findCRA is an innovative, online platform that connects nonprofits and other community partners with banks to build stronger communities. Their service allows community partners to list and promote their needs as projects on findCRA.com where banks can select specific projects to support under the Community Reinvestment Act (CRA). The

company serves clients throughout the Greater Louisville and Southern Indiana areas primarily and is an endorsed Kentucky Bankers Association vendor solution.

The companies were recognized at the “Hot Dozen Showcase” sponsored by Hilliard Lyons. Each company honored is a hometown, early-stage company that GLI’s EnterpriseCorp believes is positioned to improve the region.

The “Hot Dozen” is chosen by GLI’s EnterpriseCorp, the Louisville office of the Kentucky Innovation Network.

These companies exemplify some of the high-potential work being done in the region’s entrepreneurial community. Past winners of the “Hot Dozen” include stand-outs such as Interapt, GearBrake and MobileServe.

The 2015 “Hot Dozen” Companies include Clipper Data, Code Louisville, Edj Analytics, findCRA, Healthcare Asset Network, Inscope Medical Solutions, Logjustrips, NormaLyte, Onovative, Paddlewheel Brands, Portland Investment Initiative, and TriBlue Engineering.

BANK HAPPENINGS

Town & Country Bank and Trust Co. Employees present United Way Town & Country Bank and Trust Co. employees have been raising money over the last few months for the Tri-County Kentucky United Way. The first fundraiser was a drawing for a paid day-off. For $1 employees could purchase as many chances as they wanted for a chance to win a paid day off. Over 400 chances were sold and Pam Ball, Vice President of Branch Operations, was drawn as the winner.

their favorite recipes. The cookbook includes over 200 recipes for drinks, appetizers, side dishes, desserts and more! The cookbook will be available for purchase later this year.

Other fundraisers included dress down days on Fridays where employees could make a donation to wear jeans and their bank logo-wear as well as pancake breakfast fundraisers for employees held in the mornings at the Main Office.

Thanks to the generosity of Town & Country Bank and Trust Co. employees, $1000.00 was raised for United Way! Fundraising efforts will continue with the sale of a cookbook created by employees who submitted November 2015 | 24

Kenny Fogle, Executive Director of Tri-County Kentucky United Way, accepts a check from representatives of Town & Country Bank and Trust Co. Pictured from left to right are Carla Smith, Will McGinnis, Tammy Ballard, Linda Gordon, Carrie Masterson, and Raffo Wimsett.

KENTUCKY BANKER

Reaching Millennials; or, Generation Leaky

by Ron Daly, President/CEO My Virtual StrongBox Everybody’s talking about Millennials. Ask any marketing professional, and you’ll be told Millennials are the target audience. Pick up a B2B magazine, and there they are. And in the banking industry, where the average customer’s age is about 50, discussions center on how vital these 18-34 year olds are to your institution’s long-term survival.

vice, but there’s room for banks to reach out, especially online. Virtual financial advisor iQuantifi noted in its new Millennials Mindset Survey that while nearly three-fourths of this generation sets financial goals, only a fifth of them have a plan to achieve those goals.

Some 60 percent say increasing their overall savings is a major objective in the next year, and 76 percent say they would consider turning to a free app or online tool for help. Most know they need advice; their question is where to go where they will be respected – not patronized.

Of course, banks have always been more or less available to young adults; they just weren’t a very lucrative demographic. There were plenty of more profitable But they’re also tech-dumb accounts to service, and it wasn’t that easy to change banks. Now, that’s changed. The 80-million-strong Even after growing up with the Internet since grade Millennials have money to spend and influence with school, Millennials also could use some financial edutheir peers and others. cation about taking data protection seriously. Given the large volumes of data they produce, you’d think MillenMillennials are tech-smart nials would know the importance of keeping personal Compared with past generations, Millennials are more information private. Instead, they tend to place conveeducated, politically independent, convenience-driven, nience or personal fulfillment ahead of safety. And for environmentally aware and socially connected. And that, they’ve earned the nickname “Generation Leaky.”

they’re tech-smart. No surprise – their world has been A USC Annenberg Center for the Digital Future and shaped by the Internet, smartphones and instant access Bovitz Inc. survey suggests that 70 percent of Milennito … everything. als say no one should have access to their data, yet 25 Millennials’ connection to technology is what many of percent will trade it away for more relevant advertising; them believe makes their generation unique. A White 56 percent will share their location for coupons or deals; House Council of Economic Advisors’ 2014 study says, and 51 percent say they’ll share info with companies “their unprecedented enthusiasm for technology has the if they get something in return. Security professional potential to bring change to traditional economic insti- Chris Rouland said it well, blogging on CSO online tutions.” Further, the report notes, this includes raising news that “[Millennials] will pay double for organic capital for startups from online crowdfunding sources, bread … but place seemingly no value on the integrity instead of traditional sources like banks to grow their and security of their PPI, let alone the consequences a hack could have on their friends, family, colleagues and businesses. employers.”

Still, Millennials represent $200 billion in buying power and they are open to financial options. Banks that Should financial institutions be doing more to educate meet them on their own technology turf have new op- this population? It will take some effort to earn their portunities to respond to their felt needs – such as finan- trust, but it’s an effort worth making to engage the generation that will soon overtake all others in spending cial planning. power. Millennials are known for preferring to work Most Millennials rely on their parents for financial ad- for – and buy from – companies that make a difference, continued on page 27

November 2015 | 25

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We are endorsed by the Kentucky Bankers Association and have earned the trust of more Kentucky community banks than any firm in the country.

So when you want the best for your BOLI portfolio and a firm that is dedicated to Kentucky community banks, talk to Lou Moore & Lon Haines at Banc Consulting Partners.

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KENTUCKY BANKER continued from page 25

Reaching Millennials; or, Generation Leaky

those that give back to their communities. So think At Virtual StrongBox, Inc., we’ve designed specialcreatively, and offer services that make a difference in ized document storage that blends Internet convenience their financial wellbeing. with safe deposit security. My Virtual StrongBox® stores bank customers’ files online, in a secure docuGive them more than a cookie ment library or, if preferred, behind online banking – A story goes that a New York City artist conducted an not simply in a temporary storage drop or transfer staunscientific survey during a street fair last year, offer- tion. Customers’ data is housed in SSAE 16 certified ing Millennials gourmet cookies in exchange for shar- data centers and encrypted at rest and in transit via our ing personal data. More than half provided the last four patented process. digits of their social security number and about a third What better way for banks wanting to earn the trust of provided fingerprints and driver’s license information. Millennials than by offering them a free service they For a free cookie! both need and have the tech smarts to appreciate it?

Serving Millennials’ means understanding how they And give them cookies, too, if you want. differ from other generations, and one important way is the huge volume of data they generate, like videos, photos, online purchase details and personal files. They create online documents like no other population … and they need a protected place to store them. Today, Millennials are also graduating from college, landing first jobs, getting married, making larger purchases – life events that come with diplomas and academic records, car titles, insurance policies, medical records and wedding certificates, items that ought to be safely stored.

Ron Daly is the president and CEO of Virtual StrongBox, Inc. Inc., a company known for protecting personal data the“financial institution way,” providing credit unions with a host of automated file exchange and file storage services For more information, visit: www.myvirtualstrongbox.com

November 2015 | 27