Street Talk Episode 78: The case to build deposits in a market flush with cash
Summary
Presenters at S&P Global Market Intelligences annual community bankers conference talked about lending to industries most heavily impacted by the pandemic, investing in technology to remain relevant and how banks should take a contrarian view to the challenging revenue environment and build core deposits. Jeff Marsico, president at bank advisory firm Kafafian Group, and Jeff Weaver, president and CEO at Dallas-based American Bank NA, kicked off the community bankers conference as guests on a live episode of the "Street Talk" podcast and said even in the face of mounting excess liquidity across the industry, it is worthwhile to keep the deposits flowing in. Banks currently sit on an unprecedented amount of excess cash due to explosive deposit growth and lackluster loan demand that persisted since the beginning of the pandemic. Marsico said community banks should utilize technology to migrate back-office transactions such as reconciliation of accounts or interventions associated with past-due loans to artificial intelligence. Weaver said American Bank rolled out online account opening during the pandemic and believes the offering is necessary to compete since some people might not ever come back to branches.
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