IBANYS President & CEO (66 member banks) gives a nod and shout out to SeeTek!!!

The President's Message:
IBANYS News and Updates
By John Witkowski, President & CEO

August 26, 2020

In just over one month, IBANYS will host our 2020 Virtual Annual Convention, which will be held September 30 - October 2.In the midst of the changes caused by the pandemic, our virtual convention is an innovative way for all of us at IBANYS to provide important and timely educational programming to New York community bankers -- just as we have always done in the past in our in-person programs. Please take a moment to read the many updates in today's newsletter about this new and exciting approach, learn how your bank can participate and be a part of this event in our new “normal”. We have information on topics, speakers, sponsorship opportunities and the opportunity for banks to make the virtual convention available to all bank employees. It's our way of continuing to provide the important information your banks need.

The Banking New York Magazine is reaching out to our industry leaders and partners asking you to nominate exceptional and qualified candidates for the New York Women in Banking Awards. Please take a few minutes to nominate a friend or colleague who you believe is deserving of being honored in our New York Women in Banking feature. Please click here to submit your nomination or view additional information.The deadline to submit your nomination is Thursday, September 4.

IBANYS newest endorsed vendor Bankers Healthcare Group (BHG) is pleased to invite you to an exclusive free meet & greet webinar on Wednesday, September 2nd at 10:00 a.m. ET

Meghan Crawford, SVP Bank Relationships will provide in depth details on how you can purchase high-quality loans using their state-of-the-art delivery platform, the BHG Loan Hub, designed for community Banks.

Click here to learn more and to register for the exclusive event.

Mark your calendars and registered today!! Don’t wait this is an outstanding opportunity to hear how you could grow your loan portfolio.

Here is a link to an article in Forbes on the unbanked and underbanked. The under-banked and un-banked population has always been an interesting question for banks. There are new ideas covered in this article to help 25% of the population have a bank account. While it's not mentioned in this article, IBANYS works with a company called SeeTek who has an answer to eliminating payday lenders and other high cost check cashing businesses. We are working with Kevin Kerridge, President and CEO of SeeTek to schedule a webinar for banks in Article -What Banking For The Unbanked Means For You click to read article

The FDIC's Quarterly Banking Profilereported that Community bank net income increased 3.2 percent in the second quarter from the same time last year.That contrasts with the overall banking industry's 70 percent decline in net income, due to the economic impact of the coronavirus pandemic. More than half of community banks reported higher net income despite a 273.2% increase in provision expenses. The increase was driven by gains on the sale of loans (up 142.2%) and securities (up 130.7%). Community banks reported year-over-year loan growth of 13.5%, driven by Paycheck Protection Program lending. The net interest margin for community banks decreased 17 basis points year-over-year to 3.51%, as the decline in average earning asset yields outpaced the decline in funding costs

  • The Deposit Insurance Fund (DIF) balance rose $1.4 billion from the previous quarter to a record $114.7 billion. The reserve ratio declined 9 basis points to 1.30 percent due to an influx of more than $1 trillion in new deposits.
  • During the second quarter, one new bank opened, 47 institutions were absorbed through mergers, and one bank failed.


What Banking For The Unbanked Means For You

Jul 10, 2020

The COVID-19 pandemic has highlighted the plight of the unbanked and underbanked in America. For all of our progress as a nation over the past decade, more than a quarter of US households lack access to a basic bank account or other basic financial services.

Here is the Article on Unbanked discussed on our call:

Or Click here to load the pdf.


Why Remaining Demographic Agnostic Is Vital For Fintech In Payments Convergence

Shai Stern Forbes Councils Member
July 26, 2019

Despite mobile payments providers and credit cards, my mother and other members of the Silent Generation will continue to pay by check. Paper check remains the most common method of paying rent, even among millennials and Gen Z. Many medical bills, utility bills, taxes and nonprofit donations are also still made by check. On the business side, companies continue to pay vendors by check and accept check payments, alongside electronic methods.

Some financial technology (fintech) businesses have ignored check payments, focusing instead on card and mobile payment processing, and card companies that ignore cash and check are only touching a portion of payments. The most successful fintech providers are able to remain demographic agnostic and adapt to payments convergence by aligning their business to these three pillars: checks, Automated Clearing House/electronic and cards. To ensure these pillars function together, fintech companies should consider both integrated receivables and integrated payables to assist with all aspects of a payment from start to finish.

The Federal Reserve Payments Study: 2018 Annual Supplement

Check use up 7.5%
Debit card use up 10.4%
Prepaid up 10.5% which makes you ask...
Wouldn’t Debit be up 21.1% if people had access to a basic bank account?
INSTEAD of EXPENSIVE prepaid cards that were a grass roots payment solution BECAUSE there wasn’t any other choice AND Deposit & GO wasn’t available at time of study...

This brief provides 2017 national estimates and 2016 to 2017 growth rates for card payments. These estimates are based on survey data from a census of general-purpose card networks, payment processors, and issuers of private-label cards. The surveys covered four types of debit cards (non-prepaid, general-purpose prepaid, private-label prepaid, and electronic benefits transfer (EBT) supporting certain government assistance programs) and two types of credit cards (general purpose and private label).
This brief also provides new estimates of 2016 to 2017 growth rates for ACH and check payments as well as ATM withdrawals.

Click here to load the PDF.

National Alliance of Buy Here, Pay Here Dealers

National Independent Automobile Dealers Association

NABD/NIADA Newsletter Email

May 15, 2019-07-09

Leveraging Your Location with a FinTech

Feb 13, '19

I'm sure you've heard the term FinTech being thrown around lately in regards to tech giants Amazon, Google and how they might threaten the banks. Tech giants may affect the traditional bank space but does that really affect your non-traditional market space? Probably not, here's why and what you can do to leverage your dealership locations.

Banks have started to embrace FinTech's and their state of the art technology to help grow their footprint and offer "digital" services to their "bankable" clients. Retailers have started enhancing their locations with online delivery, pick up and financial services. But what about the auto dealer and their subprime customer? Chances are your dealership is located in a "Bank Desert". Bank Deserts have formed all over the US covering as much as one third to half of your State. Bank Deserts form when expensive traditional branches close due to a change in the neighborhood or a $3 million branch is just not viable to build. Or low to moderate income areas are redlined by the bank ie not enough income to support a bank branch. It's against regulations to redline addresses but the banks get caught doing it more often that you would think. The most telling feature of a Bank Desert are the number of check cashers, presently growing at 15-30%, as the bank move back into the cities. That doesn't mean Bank Deserts don't exist in cities. Most major cities have large pockets of low income people living in Bank Deserts. California has 5 of the top ten most unbanked cities in America and two more are runners up! The highest percentage of the Unbanked live in a large region of States from North Carolina through the entire South East and West across to California.

But what is a FinTech and how might it apply to your operation?

We've all heard the words, "Game Changer" before. Financial Technology (FinTech) companies developing state of the art bank and payment systems have been around for a while but are now just starting to make waves across many markets and concern in some. Recently the Banks themselves were terrified FinTech's would somehow impact their market. Then they embraced prepaid cards as a solution to servicing the subprime market. Prepaid cards are NOT bank products at all, far from it in fact! A new true bank product and delivery system was required.

Enter a FinTech which now offers mini bank branch terminals partnered with a bank in the same model as you would find an "Bank Branded" ATM in a retail store. The smaller POS footprint terminal banks anyone, "bankable" or the "unbanked" non-traditional subprime person we call "Bank Challenged"©. No or poor banking history, no or poor credit history, no questions asked, instant issue bank account with a Debit Card printed on the spot. And allows for automatic vehicle loan payments from the bank account that add up for you with no staffing or cash handling issues or long lines to be serviced on pay day! These are real "entry level" basic bank accounts not to be confused with non bank prepaid cards that are now rendered obsolete by this new bank product. This new mini bank branch opens your doors to become a Destination Dealership for banking and thus leveraging your location plus driving traffic and increasing vehicle sales! Put up your hand if you are selling too many cars... Put up your hand if you don't want a leg up on your competition!

And by the way, why are you letting your customers use a check casher when handling all that cash gives you a headache? Remember your Customer Service Course? Service, Service, Service ie customer contact w products your customer wants to buy! The check casher knows... now your dealership knows and you can compete!

Here's why you should be more than interested in Servicing your customers
How can I Service my Customers like a check casher does?
Am I letting found money walk out the door?
What if there was a service that combined your $70 billion market share and yet captured some of the $68 Billion check cashing market AND other financial products your customer buys?
The subprime market you service is valued in excess of $325 Billion and yet buy here pay here auto dealers represent only about $70 Billion of that. And check cashers $68 Billion...
Said mini bank branch offers check cashing (deposit), with a financial product inventory that the subprime "Bank Challenged"© market would normally purchase elsewhere... well why not from you?
All the inventory items are electronic without any need for physical inventory. Money Remittance, Bill Pay, Cell Phone Top Up, eGift cards to name a few items. And every single purchase nets the dealership a revenue stream adding to your bottom line!

In the end, if you save your new customer the predatory fees that the check casher charges, 10% of their annual income ($2400-$4500)... didn't that just make their vehicle payments for the year? What did the check casher give them...?
Ride with Me & Bank for Free!© Could be your new campaign!

What other areas of your business can FinTech's assist in?

Having trouble with recurring vehicle payments?
Paper checks may be going the way of the dinosaur but don't kid yourself, 20 billion paper checks per year are still written and if not paper, electronic checks or ACH transactions count for another 24+ billion. Then there's the massive number of credit and debit card transactions... 47 billion debit transactions alone in 2012... many of these are recurring transactions. Sure that vehicle payment stream went well for a while and then those debits started bouncing. NSF payments are the bain of any Merchant. The over head to handle NSF payments is huge. Staffing, letters, legal and court time, the black holes of profit margins, sucking up cash and you probably don't even realize how much, until year end! Hopefully you do and there's a fix.

ACH NSF Electronic Payment recovery, falls under NACHA rules and regulations. NOT Check Collection Agent rules and regulations that employ antiquated, expensive methods and DO NOT recover recurring credit or debit charges commonly found in a buy here pay here contract. This means a new profit margin for your operation as you are NOT paying for Collection Agencies high fees ONLY to recover 50% of NSF items, the industry average, with 40-50% fee on top of that or .25 cents on the dollar back to you. NSF Electronic Payment Recovery services offer free recovery services, free web portal reporting, 70-90% of items collected, 100% of funds returned and electronically deposited into your bank account with free support for as long as you require!

Now take a moment, have a coffee and think about this... all electronic, no staff, 100% of recovered funds returned (not 25%) and 70-90% of items recovered (not 50%) and all other services included are FREE!
Equals "found money" by moving into the future!
How is that possible?
Some pretty smart FinTech guys with a fancy algorithm and state of the art computers!
Under NACHA rules for NSF Electronic Recovery Services, the company is allowed to present the NSF item more often than the bank and charge a State approved fee to the account holder on each NSF item. That's how the service is free to you... and the company makes a few bucks...

When's the last time you brought your POS card processing up to speed?

FinTech's are pushing change more often than you take your wife out on a date... unless you're "that guy".
Specialized Credit and Debit card processing for dealerships like you've never seen!
How about a free quote with aggressive rates even if other processors turn you down! And a comprehensive report of their rates...
But there's more! Free terminals, free support, free custom web portals with full reporting and no contracts!
The FinTech for you, crunches mammoth amounts of data and is laser focused on dealerships, the spin off information they can offer
you is mind boggling. To get your business they are happy to Service, call it over Service, you!

What about a virtual marketing program that targets the shopping habits of your prospective clients via their cell phone with a text message within a defined geo-fenced area using Google Maps®? Sounds like Star Wars and you're not far off... but that's another entire story...

No matter what you do, you owe it to yourself to research what a FinTech can do for your operation to make it more streamline and ultimately more profitable than your Dinosaur competition will be down the street!

Drive your dealership into the future today with a FinTech and realize increased profits that impact your bottom line!

Mr. Kerridge is the CEO of SeeTek, LLC. Inventor and US Patent holder of SWORD® technologies.
More information may be found at
Buy Here Bank Here is a registered Trade Mark.

The people have spoken "Bricks not Clicks"™ to open a new bank account!

62.5% would rather open a new bank account at the branch with a person!

The SWORD Mini Bank Branch Terminal may be installed anywhere and everywhere!





Why We Still Need Bank Branches!

By Chris Skinner
December 1, 2017

One, it supports a community and specifically the business community in the area. Businesses have different needs to consumers, and do often need access to a human. People forget that.

Two, money isn't the same as a Facebook update. If you lose a post saying what a nice time you're having, it's not the same as losing a deposit of $10,000. In fact, I often state that if you woke up today and find your bank app confirms the balance you expected, then you're happy. But how do you feel if the balance is -$10,000 short of what you expected? You're just going to sit and ignore it? Of course not – you'll call the bank or go to the branch to eyeball someone. This is because money is different; it's far more emotional than other parts of our life, because it's the controlling factor in our lives.

Read More

Raddon Reseach (a FiServ Company)

August 30, 2017

Mobile Bankers STILL want Branch Convenience!

The #1 Reason People Select a Financial Institution is Because of BRANCH Convenience!

78% of Mobile Bankers Live Near a Branch that's Convenient!

Mobile Banking Creates "Stickiness" Even if the Person Moves!


Find Out More. Watch the Video!

Bank Branches: Is The Writing On The Wall?

June 22, 2017

[Or... Mobile Bankings Rush to Fill the Bank Desert Void? Not so Fast! At Least Here in Traditional America...]

In a counter to sluggish interest rates, ever more complicated and taxing compliance regulation, and a weakened consumer market segment, bank executives across North America and Europe are taking the ax to "superfluous" brick-and-mortar bank branches. And while macro-economic factors, most of which represent the residue of the 2008 financial crisis, certainly led banks to water, a meaningful transition to digital channels requires a critical mass of customers willing to migrate to mobile or desktop banking in lieu of more traditional means.

Facts On The Ground

The last few years have bore witness to a somewhat jarring pace of bank branch closures, and the process has morphed from 'pruning' excess to deep cuts in infrastructure. Since 2012, JPMorgan Chase has trimmed national network coverage by 9 percent, while Bank of America has pursued a more aggressive strategy, shuttering the equivalent of 15 percent of its brick-and-mortar posts.

Read More

Banks could lose 60% of retail profit to tech startups: study

Globe & Mail
March 25, 2017 September 29, 2015

Banks could lose up to 60 per cent of their retail profits to nimble fintech firms within the next decade, according to global consultancy McKinsey & Co., offering a particularly alarming outlook as new financial technology players nibble away at some of the more vulnerable areas of traditional banking.

Read More

Adults Don't Use Mobile Banking

While mobile banking app use took off in 2015, with member adoption of credit union apps growing by 35 percent on average, nearly 88 percent of U.S. adults did not use mobile banking because they felt their needs were being met without it.1

1 Source:

Bank Failures Since 2009

There are bank closures... and then to make matters worse... there are bank failures...

number of bank failures since 2009


Year Bank failure cost to DIF Number of bank failures
Total: 491
2016 (estimated) $9.6 million 1
2015 (estimated) $894 million 8
2014 (estimated) $398.8 million 18
2013 (estimated) $1.165 billion 24
2012 (estimated) $2.785 billion 51
2011 (official) $7.945 billion 92
2010 (official) $22.904 billion 157
2009 (official) $38.732 billion 140


Payment Journal

August 23, 2016

Trend is consistent with Mercator Advisory Group Banking Channels research, which has found that customers and members strongly desire the option of having face-to-face contact at a branch -- when and where desired. This access to subject matter experts, even if only agree occasionally, can be an important driver of customer satisfaction and increased product deepending and long-term loyalty.

Bank executives argue, however, that branches remain crucial for acquiring new customers and doing more business with new ones. Closures, they say, would hurt revenue more than help reduce costs.

“Our customers still want to visit us,” Jonathan Velline, Wells Fargo's head of ATM and store strategy, told Reuters in an interview. “They're still coming to our stores and our ATMs at pretty consistent rates.”

Washington Post: Say goodbye to your neighborhood bank branch

Former Barclays chief executive Antony Jenkins laid it out in particularly stark terms in a speech last fall: The global industry, under pressure to meet customer demands for automation and cheaper services, will slash employment and branches by 20 percent to 50 percent over the next decade, he estimated.

“I have no doubt that the financial industry will face a series of Uber moments,” he said in the late-November speech in London, referring to the way that Uber and other ride-hailing companies have rapidly unsettled the taxi industry.

And that's not just the opinion of one well-informed man.

Francisco Gonzalez, CEO of BBVA Bank, said about “In 10 years, only 100 banks will have survived the digital wave.

Realize these figures and representations are indicative of the "banked market" who have the education and unlimited access to online banking technology and therefore need not frequent a bank branch as a "bank challenged" person would have the need to. As proof of that, Check Cashers "thrive" in "Bank Desert" regions. Growing at a rate of 11% in 2014.

Life in a Banking Desert

Without access to basic financial services, poor and minority communities are more likely to use dangerous, high-cost options.

Mar 2016

A neighborhood saturated with fast-food restaurants and bodegas but lacking a grocery store would make it difficult to stick to a healthy diet. It would be similarly hard to manage finances and build wealth without a bank branch nearby. Unfortunately, that is exactly what an increasing percentage of U.S. households are being told to do: manage their finances and build wealth without access to a nearby mainstream bank branch.

Read More



Biz Journal: More than 1,600 bank branch closures in the U.S. last year

Overall, there are 1,614 fewer bank branches in the United States today than there were a year earlier [2015]. Banking companies of all sizes continue to close offices as more consumers turn to digital banking and as a means to trim expenses. [Note many low income people do not have access to the digital world. They may be older, not trained or, according to AARP studies, just not be able to afford PC's, lap tops and smart phones. Having said that, to be fair and balanced, we have witnessed many homeless people with state of the art smart phones!]


Wall Street Journal: The number of U.S. bank branches has fallen to the lowest level since 2005

The number of branches in the U.S. dropped to 94,725 as of June 30, [2014], down 1,614, or 1.7%, from a year earlier and down 4,825 from the peak in 2009, according to the FDIC data.



NY Times: Criticism Grows as Check-Cashing Stores Expand in Poorer Areas

By WINNIE HU AUG. 5, 2012

Many of New York City's poorest residents do not have bank accounts, so these window transactions, repeated hundreds of times every day, are their primary contact with the financial system. Check cashers are as familiar to them as corner bodegas, and as reliable.

But an industry built on mutual convenience has come under increased scrutiny over the past decade as its stores have continued to become full financial centers, improving services like electronic bill payment, wire transfers and prepaid debit cards.

The expansion has spurred renewed criticism from advocates for poor residents and from bank officials, who say the check-cashing industry takes advantage of those who have no other options, and it has prompted more calls for consumer protections. Many of the industry's leaders say that they have been unfairly tarnished, that they provide needed services and that they are making improvements to their operations.