First Principles Thinking in the Banking Industry

First Principles thinking is an idea popularized by entrepreneur Elon Musk, although it has roots with other minds like philosopher Aristotle, inventor Johannes Gutenberg, and military strategist John Boyd.³ First principles thinking is like taking a scientific approach to your thought processes. A first principle was defined by Aristotle as, “the first basis from which a thing is known.”³ As Musk describes, “you kind of boil things down to the most fundamental truths […] and then reason up from there.”² 

The Correlation Between Health and Finances

Information abounds about the need for physical health. Our society is largely driven by physical health and fitness, and yet, we still see heart disease, stroke, cancer, and diabetes on the list of top causes of death.⁴ Common advice stays constant: eat right, exercise, avoid smoking and drinking. But is it possible that physical health reaches beyond just these few lifestyle choices? Research suggests that finances also play a role in a person’s physical and mental fitness.

What the Small Business Index is Saying About a Coming Recession

Although there was a slight dip in December, the NFIB (National Federation of Independent Business) Small Business Optimism Index saw one of the highest yearly survey readings in 2019 since the creation of the survey in 1973. According to the December survey results, “an increased number of small business owners reported better business conditions and expect higher nominal sales in the next three months,” and “small businesses continued to hire and create new jobs with actual job creation.”

Integrating Technology in 2020

In a recent article by Tina Giorgio, president and CEO of ICBA Bancard, she discusses the top three industry developments that “should be on every community bank’s priority list in 2020 and beyond.” Change is the most consistent factor of the banking industry; new technologies will continue to emerge and new solutions will be created. Giorgio urges bankers to take full advantage of these opportunities. In her article, her top three developments are Internet of Things (IoT), Digital Wallets, and Customer-first approach.

Acquire or Be Acquired 2020 Recap

Last week’s Acquire or Be Acquired conference was fantastic. The weather was warm and the conversations were superb. The feedback we received from banking leadership was remarkable.

It was exciting to meet with both well-established and growing, up-and-coming banks. We loved seeing and reconnecting with several Teslar clients from across the US as well as many from our home state of Arkansas.

A Case for Robo-advisors

Technology is changing the day-to-day operations of banks and their employees. Many are hesitant and resistant to a technology takeover, but many of these digital services can revolutionize the banking industry, giving employees more opportunities to do work that generates more revenue and has more meaning.

Why America Needs Real-time Payments

There are two types of people: those who never let their bank account get close to zero and those who at some point get near or below zero in their bank account. According to Aaron Klein, a fellow at the Brookings Institution (a government research center in Washington, D.C.), half of Americans have enough income and expense volatility that their bank accounts hit or get close to zero. Klein relents, “once you start getting near and hitting zero, the world becomes incredibly expensive: $35 for an overdraft, $50 for a payday loan, interest rates of 300-400%, late fees.”

Employee Resistance With Your Digital Transformation

It’s true nobody likes change, but it’s particularly frustrating to face changes that seem completely unnecessary. Chris Maher, CEO of OceanFirst Financial, noticed the biggest problem when going digital was a cultural and training gap among employees, “not surprisingly, if you work all day within a bank branch, you don’t personally have a big need to use mobile banking and wouldn’t be an advocate of that technology because it’s not important to you in your life.”

Banking Jobs of the Future

As digital banking continues to grow in popularity, it’s evident that the traditional model of banking is not coming back. Yes, there is still a demand, and therefore need, for in-person interactions and brick-and-mortar stores (read more on that here and here), but many aspects of traditional banking are more than likely gone for good. If the future of banking is digital, we can’t help but wonder, what does that mean for the future of banking jobs?

How Banks Can Attract Young Talent

The introduction of AI and digital technology has “forced banks to realize that human connection is what will set them apart and give them an edge. You can use all the technology you want but without the right people to deliver it, manage it, and embrace those changes, you will fail.”¹ Collaboration, empathy, creativity-- all of these new things are humanistic by nature.