July 18 – It has been 13 months since the Financial Accounting Standards Board (FASB) issued its final standard on accounting for credit losses, ASU 326. Since that time, financial institutions have been doing research, preparing for the change and discussing next steps for their calculation. Based off of findings over the past year, what has been clarified and what is to come?
Studies & Reports
July 14 – The Federal Reserve Bank of New York today released results from its June 2017 Survey of Consumer Expectations (SCE) Credit Access Survey. Regarding consumer experiences, the release shows an increase in application rates for credit over the past 12 months. The share of “discouraged” credit applicants reached a new series low, but a larger share of applications were rejected compared to the previous survey fielded in February.
Consumers wrote nearly two-thirds fewer checks per household in 2015 than in 2000, while total noncash payments per household, which includes not only checks but also card payments and electronic transfers via the automated clearinghouse (ACH) system, expanded almost 95 percent, according to additional results released today from the 2016 Federal Reserve Payments Study.
An Accenture survey of nearly 800 financial services executives across Europe, Asia and North America found that more than half of financial institutions plan to increase their investments in major corporate transformation initiatives, or “change programs,” over the next 12 months, primarily due to cost pressures, new regulations, increased customer expectations and digital disruption.
June 21 — Three out of four consumers, 73 percent, say they are aware of their credit standing and 61 percent say their credit standing is important to them right now, but far fewer check their credit score more than once a year, according to a recent independent survey commissioned by Discover. (more…)
June 21 — TimeTrade, a provider of intelligent customer engagement, announced the results of a new study—The State of Retail Banking 2017—which show that banking consumers still like to conduct business at a local branch, but they expect knowledgeable, highly personalized service from bank employees when they visit.
Retail banking has long been a tech-intensive industry. However, a new study from the Clayton Christensen Institute for Disruptive Innovation, in collaboration with Tata Consultancy Services (TCS), examines the competitive impact of recent digitized banking products and services, and how fintech providers – which have few similarities to traditional banks – are attacking virtually every product category in banking.
June 19 — Billions of dollars could be saved if Congress revises a law to allow regulators to be more aggressive in reducing losses from insolvent banks, according to a recent study co-authored by a faculty member from Florida Atlantic University’s College of Business.
June 13 — Sageworks, a financial information company that provides lending, credit risk and portfolio risk solutions to banks and credit unions, announced the launch of the company’s biennial Bank and Credit Union Examination Survey, which is open to all U.S. banks and credit unions that undergo federal examinations.
June 12 — A new study released by the Consumer Financial Protection Bureau found that the way consumers establish credit history can differ greatly based on economic background. Consumers in lower-income areas are more likely than those in higher-income areas to become credit visible due to negative records such as a debt in collection, the bureau reported. Conversely, consumers in higher-income areas are more likely than those in lower-income areas to establish credit history by using a credit card or relying on someone else. The study also found that the percentage of consumers transitioning to credit visibility due to student loans more than doubled in the last 10 years.