5 STEPS TO INCREASE ORGANIC LOAN GROWTH - FIS

5 STEPS TO INCREASE ORGANIC LOAN GROWTH

5 Steps

3

to increase organic loan growth

Many bank executives are anxiously scrambling to grow their lending business. This priority is highlighted in the findings of a recent FIS survey of community bank CEOs.

The No. 1 concern found in this 2016 survey of financial institution executives was growing loan revenue.

A second priority was improving lending margins.

1

2

Top Issues Facing CEOs

Issues

Growing Loans

Improving Lending Margins

Improving Customer/Member Service and Experience

Increasing Non-interest Income

Reducing Non-interest Expense and Managing Cost

Increasing Core Deposits and Customer Acquisition/Retention

Responding to Compliance Requirements

Implementing New Systems and Technologies

Leveraging Data and Analytics for Strategic Decisions

Realigning delivery channels: branch, Internet, mobile, call center, selfservice

Minimizing Impact of Non-traditional Competitors

Responding to potential changes to Capital Requirements and Reserve Calculations

Implementing an Enterprise Risk Management Program

Consolidating New Acquisitions and/or Operations

5

4

Importance 92% 84% 83% 80% 85% 71% 75% 56% 61% 56% 51% 44% 38%

24%1

5 Steps

to increase organic loan growth

Not surprisingly, margin income continues to decline as the industry has failed to return to the kind of profitability prior to the recession of 2008.

The adjacent graphic depicts the overall banking industry return on assets for the last ten years.

Precent

FDIC Insured Institutions Average Return on Assets

2.5

2 1.5 1.21

1

0.5

0.18

0.97 1.10 0.96 1.03 1.04 0.65 0.76 0.03

0

-0.5

-0.94

-1

-1.5

-2

-2.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fourth Quater Figures

Average ROA

2

The Key Question

Economic improvement will only generate a finite level of new loan demand. The real question is, which banks are going to earn the business and book new loans (and renew existing credits)?

It's crucial for banks to address this challenge without engaging in irrational price competition, or taking on inadequately structured credits.

5 Steps

to increase organic loan growth

5

This e-book describes a comprehensive approach to achieving profitable, quality organic loan growth. The approach entails five steps to optimize the relationship potential of existing customers, and add new customers -- often by taking business away from competitors.

3 4

2 1

The following steps will help improve the competitive

posture of any bank in today's

challenging lending environment.

4

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download