The Banker Next Door

AI has a deployment problem. As GenAI has experienced sky-high adoption a disconnect has grown due to a lack of bottom-line profitability. McKinsey calls this the “GenAI paradox.” Is GenAI developing according to the Gardner Hype Curve or is the technology a bust? This is what we consider in Part 1 of this 4-part series on AI profitability. This episode examines a blog post from PCBB titled “Cracking the GenAI Paradox.” In addition...

KPMG, one of the big four accounting firms in the U.S., was the audit firm for Silicon Valley Bank, Signature Bank, and First Republic Bank, the three major banks that failed in the banking crisis of 2023. A new report from The Senate Permanent Subcommittee on Investigations examined KPMG’s role in the bank failures. Does KPMG bear any responsibility in the failure of these banks? This episode examines two articles one from Banking...

Bank Director’s 2025 Technology Survey examines decision-making, data strategies, and how banks are using artificial intelligence. Banks are continuing to grapple with data, AI maturity, and technology costs. This episode examines an article from Bank Director titled “2025 Technology Survey: Banks Grapple with data, AI maturity.” Links to both the article and report are included below. 

Link: 2025 Technology Survey: Banks Grapple W...

Cross-border payments reforms continue to take shape. It is important for community banks to understand opportunities and significant changes in this space. The G20 roadmap continues to take shape around three key areas. 1) Payment system interoperability and extension, 2) Legal, regulatory, and supervisory frameworks, and 3) Cross-border data exchange and message standards. This episode examines an article from Independent Banker ...

This episode examines the results from the OCC 2Q 2025 Bank Trading and Derivatives Activities report for banks in the U.S. Bank trading revenue increased $16.6 billion in the 2nd quarter. Derivative notional amounts increased by $13.1 trillion to $223.5 trillion.  Links to the press release and report are included below.

Link: OCC Reports Second Quarter 2025 Bank Trading Revenue | OCC

Link: Quarterly Derivatives Report Second Quar...

A new report from NAEP on public school performance in the U.S. shows catastrophic results with 1 in 5 Americans functionally illiterate! The public school system in the U.S. has consumed trillions of dollars only to deliver worse results. This episode examines two articles from the Epoch Times (subscription required) title “Latest education scores reveal failure of regulatory accountability and DEI” and “She couldn’t read her own ...

With the passing of The Genius Act and other potential legislation on the way, Banks will soon have a full regulatory framework around Stablecoins. This new legislation has brought expectations around Stablecoins, with some people seeing major change while others think not much will happen. In this episode we consider myth versus fact by reviewing an article from Bank Director titled “Stablecoins and Banking: Separating Fact from F...

National and regional banks have been pulling back on Multifamily lending. Does that create an opportunity for Community Banks? The pullback in lending by the largest banks is due, in part, to higher interest rates on existing debt and tighter liquidity. We consider some tips for Community Banks that could lead to multifamily lending success. This episode reviews a blog post from PCBB titled “Can you fill the Multifamily Lending Ga...

Capital markets are open for banks that need to raise capital, which is great. The question is what will banks use the capital for? Outside of M&A, investors are going to be looking for banks to invest raised capital in ways that will boost a bank’s profitability. At the same time, banks have a lot of pressing needs, particularly with technology. While all these needs are important, they do not all return an immediate impact to...

As interest rates are set to decrease U.S. Treasurys remain a go to investment for income and safety but are there other alternatives? Municipal bonds, agency mortgage-backed securities, and preferred stock are three potential alternatives. An additional consideration, what is better, a tax-exempt municipal bond or a taxable bond?  This episode reviews two articles from The Wall Street Journal (subscription required) titled “Three ...

The SBA has launched a new loan program focusing on manufacturers. The 7(a) Manufacturer’s Access to Revolving Credit (MARC) Loan Program will offer working capital to small manufacturers, which make up 98% of all U.S. manufacturers. The 7(a) MARC loans of up to $950,000 will have a 0% up front fee. The MARC loan limit will be $5 million. Reviewed in this episode is an article from The Business Journals (subscription required) titl...

Treasury Secretary Scott Bessent has unleashed on the Fed in his new article “the Fed’s New ‘Gain-of-Function’ Monetary Policy.” The article discusses the Fed’s potential loss of independence, widening inequality in America, how the Fed’s actions have distorted the market, and ends with a call for reform. This article is monumental and historic. Change is coming to the Fed, whether they like it or not.  A link to the article is inc...

A new analysis from ICBA shows that Credit Union purchases of community banks do in fact have a harmful economic effect on the communities which they mean to serve. This episode reviews an article from ICBA titled “New Analysis Shows Credit Union Acquisitions of Community Banks Harm the Communities That Can Least Afford It.” The analysis looks at the impact on SBA lending and residential mortgage lending in various communities afte...

This episode reviews a series of articles from S&P Global Market Intelligence (subscription required) detailing the events of the last week as a potentially massive fraud was uncovered involving a subprime auto lender named Tricolor Holdings. The fraud is alleged because, as of yet, no criminal charges have been filed. The potential losses are currently rippling through multiple banks including JPMorgan and Fifth Third Bancorp....