SDBA eNews

November 7, 2019

More Than 70 Attend SDBA's First Emerging Leaders Summit

Photo of Emerging Leaders Summit AttendeesMore than 70 emerging bank leaders from across the state attended the SDBA's first NEXT STEP: Emerging Leaders Summit in Sioux Falls yesterday. Attendees heard from a variety of speakers on topics such as connecting with people, the DISC universal language of observable behavior, growing the workplace culture you want and what makes a great leader. 

"It isn't about becoming the president of anything. It might not even be becoming a vice president or a director.  It is about how you are changing things that you are engaged with right now. What impact do you have? How do you influence other people, the way they think, the way they live," Avera Health President and CEO Bob Sutton told emerging bank leaders. "Leadership is about every single day modeling behaviors that other people can sincerely and genuinely appreciate."

The event is designed to help cultivate, connect, engage and empower South Dakota's future bank leaders. One goal is to encourage bank leaders to find and express their voices within their organizations, communities and the banking industry and provide opportunities to network and exchange ideas with other industry professionals. 

The event also included a speed networking session and a networking reception the evening prior. Be watching for the date of next year's NEXT STEP: Emerging Leaders Summit.

2020 High School Scholarship Program Application Now Available

The South Dakota Bankers Foundation has allocated $90,000 for the High School Scholarship Program for 2020. Matched by recipient banks, the program will result in a total of $180,000 in high school scholarships awarded to high school seniors throughout South Dakota in 2020.

Scholarship are available in $500 increments to the first 180 banks/branches who agree to match an equal amount. Banks who participated in the High School Scholarship Capital Campaign are eligible to apply for funding. 

Students who receive the scholarships must be high school seniors who plan to attend an accredited South Dakota college, university, vocational technical school or community college on a full-time basis. Winners must agree to have their names released to the media. Other scholarship eligibility requirements may apply as determined by the sponsoring bank.

The deadline for SDBA banks to apply for high school scholarship funding is Dec. 20, 2019. Learn more and apply.

Governor Noem Continues to Oppose Industrial Hemp in South Dakota

On Tuesday, Gov. Kristi Noem issued a statement in regards to the U.S. Department of Agriculture’s new regulatory guidelines for industrial hemp released last week.

“USDA’s guidelines are out, but my position on legalizing industrial hemp has not changed. I remain opposed to industrial hemp in South Dakota because of the impact it will have on public safety and law enforcement’s ability to enforce drug laws," Noem said in the statement. "USDA does not preempt a state’s ability to adopt stronger requirements or prohibit production. South Dakota state law prohibits industrial hemp production, and that statute still stands. The guidelines do require the state to permit interstate transportation of hemp. My team is working to ensure we have proper procedures in place so this doesn’t become something that weakens our drug laws."

"Conversations around hemp will continue, and I will continue to make the case that legalizing hemp will legalize marijuana by default," she said.

The USDA last week issued a long-awaited interim final rule establishing new regulations and procedures for the legal production of industrial hemp, as required by the 2018 Farm Bill. The regulations provides a standardized framework for how USDA will approve regulatory plans from states and Indian tribes that wish to oversee hemp production, as well as a federal plan for producers in areas without approved local plans. The framework covers how to maintain information on the land where hemp is produced, test THC levels and dispose of plants that do not meet the necessary requirements. They also address licensing requirements and compliance.

The interim final rule will remain in place for 730 days after publication in the Federal Register; comments will be accepted for 60 days following publication. Read the interim final rule. For more information, contact ABA’s Ed Elfmann or Rob Rowe.

ABA Continues to Push for Telephone Consumer Protection Act Reform

The ABA this week shared bank-provided data with the Federal Communications Commission to bolster its advocacy efforts for new rules from the FCC that would ensure that customers can receive important communications from their banks. The FCC is considering issuing new Telephone Consumer Protection Act rules in light of a federal appellate court’s decision last year to strike down two key aspects of the FCC’s prior rules.

The data shows that banks are not able to place time-sensitive informational calls and text messages to millions of customers because of the FCC’s past, expansive interpretation of the types of dialing equipment that falls under the TCPA’s restrictions. ABA has urged the FCC to issue an interpretation of an “autodialer” such that the statute’s restrictions would apply only to dialing equipment that generates telephone numbers in random or sequential order. Read the letter. For more information, contact ABA’s Jonathan Thessin.

NSU Master's in Banking and Financial Services Now Offered Fully Online

Northern State University’s Banking and Financial Services master’s degree program is now offered completely online, making it even more convenient for professionals looking to advance their career.

The program used to require a summer residency, but students would often have to use vacation time to come to campus, said NSU School of Business Interim Dean Dr. Doug Ohmer. If it didn’t work out, they would have to wait an entire year before they could finish the program.

“Now with it fully online, they can take the course when it comes naturally in their sequence of courses and be done,” Ohmer said. “So that’s the real benefit.”

Ohmer said the program is good for individuals who have already established themselves in the banking and financial services industry and now might be looking to move upward in their responsibilities. 

The undergraduate program, offered both face to face and online, prepares students for any professional, entry-level position in the banking and financial services industry, including management training programs, entry-level loan officer or assistant branch manager.

NSU is also kicking off a new scholarship program for banking and financial services students at the undergraduate level. Four undergraduate scholarships will be available to new, full-time students. These scholarships will be offered on a competitive basis, so students will have to apply.

For more information, visit NSU Banking and Financial Services online or contact the School of Business at 605.626.2400.

Podcast: With Rebrand, WaFd Puts its Bank Identity Front and Center

Washington Federal—a $16.4 billion regional institution based in Seattle—had a problem: many in the general public didn’t realize exactly what it did. Was it a federal government agency? Was it a credit union? To make it clearer, the company recently rebranded itself to WaFd Bank.

“Banking is a noble profession,” says WaFd President and CEO Brent Beardall on the latest episode of the ABA Banking Journal Podcast. “We were very happy to put the word ‘bank’ in our name and tell people what we do.” Among the unique things that WaFd Bank does: holding consumer mortgage loans in portfolio, allowing it to be more flexible with customers in tough times; as well as making paycheck replacement loans to government employees during the most recent government shutdown.

Beardall also discusses WaFd Bank’s performance and growth in markets that range across the west from Washington state to Texas; the role of midsize regional banks in the nation’s financial ecosystem; and WaFd Bank’s technological and cultural evolution to be a digital-first institution, including being more tolerant of failure and experimentation. Listen to the episode.

New ABA Working Group to Gather Feedback on CAMELS Rating System

As part of a broader initiative to increase transparency and support innovation, the Fed and FDIC recently issued a request for information on the CAMELS rating system. The agencies are asking for feedback on the use of CAMELS and their application and enforcement processes. The comment deadline is 60 days after publication in the federal register. ABA is forming a working group to gather member feedback and draft its comments. For any questions or to participate in the working group, please contact ABA’s Alison Touhey.

Eide Bailly to Hold Annual Bankers Seminar in Sioux Falls

Eide Bailly will hold its 39th annual bankers seminar Expanding Horizons: Planting Seeds for Success on Tuesday, Nov. 12, at the Sioux Falls Convention Center.

Uncertain times does not mean a lack of opportunities, and change moves ahead, with or without us. Now is the time to be thinking strategically about the future of your bank and planting the seeds that will position you for success. Eide Bailly invites bankers to attend the complimentary seminar to hear about the different ways you can expand your horizons when it comes to the banking industry and your organization. 

The seminar will feature speakers who understand the issues bankers face in the current economic and regulatory environment and provide an opportunity to interact with professionals who possess a broad spectrum of knowledge in tax, accounting, regulatory, legal and other areas of banking. Learn more and register to attend.

Compliance Alliance

Question of the Week

Question: What are the risks/concerns to the bank if we allow a customer to view multiple accounts under the same log in in our online banking? The customer would have “view only” access to these accounts. The accounts are a mix of business accounts (LLCs, partnerships, sole proprietorships, etc.) and personal accounts. Would this be a risk based decision, or is there regulations against it?

Answer: This is a risk-based decision. It is generally not considered best practice, except for sole proprietorships. Some banks do allow "view only" so that the customers can at least see everything in one place but do not allow the customer to transfer funds. Allowing transferring of funds would run the risk of commingling funds, possible tax fraud, etc. When there are multiple owners, it could cause issues if one owner is transferring money out to their personal account. Although that is ultimately the responsibility of the owners and not the bank, the bank may still be involved if a dispute were to come up.  

Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email.

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Contact Alisa Bousa, SDBA, at 800.726.7322 or via email.