Early and Co.

Change is tough! But ignoring change and burying our heads in the sand only sticks our rear ends in the air!!!

This week I spent some time with a bank senior management group reflecting on many events of the past 18-24 months. Just three I'll mention briefly could lead every bank into lengthy discussions: 1. The raise in FDIC coverage from $ 100,000 to $ 250, 000, and the public's knowledge/lack of knowledge of the raise , 2. The consistent and mainly negative media coverage of " the banks ", and their supposed " unwillingness " to make loans, and the failures of some financial institutions, and 3. The changes, and anticipated changes, in regulatory reqirements for financial institutions.

Regarding FDIC coverage, much research, including what Early & Company has done, has shown that the majority of Americans are still unaware of the change! Banks need to address this, each in ways that are specific and effective to the public (s) in their specific markets.

The old adage, " All generalities are false, including this one" certainly applies to " the banks" media coverage. Knowing the dangers of generalities, I'll make this statement anyway:
A major focus NOW for banks...the vast majority of whom are sound and committed to lending and to serving their markets... should be to develop, implement, and change as needed, specific plans and actions for their specific institutions in this envirionment. We all tend to complicate banking way too much. Banking is basically two functions: Performance and Perception! Banks must consistently and effectively address both for long term success.

Regulatory changes. Some are needed, many are not. Change is inevitable, but how we react to change is our choice. Burying our heads in the sand only sticks our rear ends in the air!
Plan. Get whatever help you need. And implement. And change what you can control that needs to be changed. For the banks who do that, odds are great that 2010 will be a GREAT year!

Quote of the day: "In every adversity lies the seed of an equal or greater benefit."