Published in Wisconsin Banker
December 2011

Capital considerations
Bankers must have a plan for raising money, advisers say

By Becky Nelson

“There is always plenty of capital for those who can create practical plans for using it,” author Napoleon Hill once wrote.

Whether that is true in banking today is debatable. These days, capital is hard to come by – although it is more accessible for those institutions that have a good plan in place.

Compared with other states, Wisconsin banks are generally well-capitalized. Out of the 238 banks in the state, 16 of them – or 6.7 percent – had Tier 1 capital ratios under 8 percent as of June 30, 2011, according to Mike Mach, banking administrator at the state Department of Financial Institutions.

But as recent events have proven, changes can occur quickly and banks need to be prepared.

Published in Wisconsin Banker
September 2011

Social awareness
Wisconsin bankers say Facebook, Twitter can be useful for connecting with customers

By Becky Nelson

Social media sites Facebook and Twitter offer community banks a public forum to connect with customers, highlight community involvement, and raise brand awareness.

On the flip side, these social networking tools require policies in place to avoid compliance problems, staff time to maintain them, and faith that they are worth the effort, since measuring ROI can be difficult.

Managers at Wisconsin community banks say they’re using Facebook, and sometimes Twitter, to complement other channels in the marketing mix. It’s where their customers are likely to be, since some of them no longer read the newspaper, listen to radio, pay attention to TV commercials or come into the bank.

But simply creating a presence isn’t enough – banks have to continually promote their Facebook or Twitter page, post relevant content, and respond to comments.

Published in Wisconsin Banker
August 2011

Change comes at a cost
Wisconsin banks try to prepare for the expense and needed expertise to comply with Dodd-Frank

By Becky Nelson

As the one-year anniversary of the passage of the Dodd-Frank Act approached, Wisconsin banks found their own individual ways of preparing for the anticipated changes.

For many banks, increasing regulation has required an analysis of where to further cut expenses. In preparation for the new rules to come, some banks have added compliance staff or outsourced more of their compliance work. Dodd-Frank provisions have become a frequent topic of discussion at board meetings and staff meetings, and bankers are keeping pace with the steady stream of requests to send comment letters and e-mails.

Bankers’ “general overriding theme is uncertainty about what the impact is, exactly,” said Maureen Fassbinder, a partner in the Financial Institutions Group at Wipfli.

Published in Wisconsin Banker
May 2011

Are your customers an easy target?
Banks can help prevent small businesses from becoming victims of online scams

By Becky Nelson

Malicious computer programs have the potential to wipe out the bank accounts of small or mid-sized businesses in just minutes.

Along with that loss is the potential for bad publicity and a damaged reputation for the bank, as well as possibility of a high-dollar lawsuit.

That’s why security professionals believe banks have a responsibility to educate their customers about these threats and advise them on the relatively simple precautions they can take.

The tricky part is that banks cannot be directly involved with protecting the customer, because the scams target the customers’ computers – not the bank’s system.