The difficulty in separating the wheat from the chaff is one of the most challenging dilemmas faced by customers who find themselves increasingly dogged by the paradox of choice. Whether it is choosing amongst white, wheat, gluten-free, and pumpernickel bread or deciding whether to purchase whitening, cavity-protection, sensitive, or tartar-control toothpaste, consumers can easily become overwhelmed or choose to become more discerning in their decision-making process.

In a nod to the increasingly technical nature of business, mobile applications, especially those of banking institutions, are presenting the latest challenge to customers who are becoming ever more sophisticated in the battle of ‘choice.’ This increasing sophistication is a direct response to exhaustive options:

Spotlight on M&A Systems and Data Considerations

This blog will focus on the technology component of M&A and secondarily recognize the impact to people and processes that any large change in technology engenders. Technological systems are a critical piece of any business today and are instrumental in supporting large scale growth without proportional expense growth.  While a merger creates technological risk, it also provides an opportunity to upgrade systems in a way that seldom can be organically justified.  Mergers present a time for courage and clear direction as succumbing to the inherent political battles over system superiority will create decades of extra expense and reduced agility.

M&A: Focusing on the Employees

In prior blogs, we have talked about the importance of preparation and planning for any major growth strategy, especially M&A activity.

The Art of Defensive and Offensive Merger Prep

As with most other business scenarios, M&A negotiations often force a company to take a defensive or offensive position on M&A due to timing and company priorities.  Many organizations are reactive (though they prefer the term opportunistic) and force their organization into a defensive position at the mere rumor of a consolidation.  Other organizations recognize that business consolidations are part of their growth strategy and therefore invest more in planning in order to ensure a degree of readiness.  The more proactive an organization is in their targeting and internal readiness, the more that effort and resulting assets can be turned into an offensive strategy.  The executive team will build off your preparation and confidence.

                          M&A: An Event or a Discipline? How Ready Are You For Growth?

            The consolidation of two businesses may start with marketing or distribution agreements, a joint venture or a CEO call.

Compliance Lifecycle

Reform, Comply, Report. STOP!!!!

Implementing some form of Regulatory Reform & Compliance Management in an organization could be as simple as the title indicates but rarely is, nor should it be. Quite the opposite, in recent years governing bodies and shareholders have been demanding increased accountability and management transparency resulting in a progressively more complex regulatory environment.

The BASEL III Accord is now requiring immediate action for those financial institutions doing business in the Eurozone, with most elements anticipated to be adopted in some fashion within the US in this decade.  A by-product of this regulatory framework highlights how a financial institution's real-time understanding of the dynamic relationships between assets, liabilities, and cash flow can become a key strategic advantage when deciding how to best allocate these resources to maximize profitability while simultaneously managing risk.  Along with the BASEL Accords, Dodd-Frank is raising the bar for risk management standards, and recently-modified FDIC assessment rules add another consideration necessary to properly balance risk and profitability.  Combined with the reduction of fee opportunities and the likelihood that interest margins will remain thin by historical standards, strategic asset-liability management and pricing are ever more critical to profitability.&nb

The The McKinsey Quarterly has released a new paper on the short term future of banking.  The paper is straight forward and not overly technical.  It discuss the two types of accounting (fair value and hold to maturity) that have contributed to our current economic situation.  The full paper requires registration which is free.  http://www.mckinseyquarterly.com/Whats_next_for_US_banks_2368