IRA Fall Update | Friday, Nov. 3 via Zoom

The South Dakota Bankers Association will host its 2023 Fall IRA Updated via Zoom on Friday, November 3. The IRA Update builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their financial organizations may handle. This course includes how the SECURE Act really changes our two biggest topics: RMDs and death distributions and discusses any pending legislation. This is a specialty session; some previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations. IRA administrator, personal banker, or member services personnel who has a working knowledge of basic IRA operations and wishes to expand their expertise and provide enhanced customer service; A financial professional who recognizes that IRAs play an integral role in retirement planning; A compliance specialist with procedural oversight of IRA policies and practices; or support personnel responsible for promotional materials that describe the services provided by your financial organization are encouraged to attend. Click here to review the full agenda and register.

Registration Open for 2024 National School for Beginning Ag Bankers

Registration is now open for the SDBA's 2024 National School for Beginning Ag Bankers set for June 24-27, 2024, at Black Hills State University in Spearfish.

Fundamentals of Ag Lending: National School for Beginning Ag Lenders is an intensive school designed to train in all facets of agricultural lending with emphasis on credit analysis, credit scoring, risk rating, problem loans and group case study. Attendees will receive personalized instruction and continual peer interaction fostered through a limited class size, case study and group exercises.

Set in beautiful Spearfish, S.D., right in the center of the United States, students will have ample time to enjoy the scenic Black Hills of South Dakota. Whether you enjoy hiking in Spearfish Canyon, rock climbing in the Black Hills National Forest, viewing monuments such as Mount Rushmore and Crazy Horse, or just testing your luck at the tables in historic Deadwood, S.D., Spearfish has you covered!

For more information or to register, visit www.sdba.com/ag-school.

ABA Foundation: National Family Caregiver Resources Available

ABA Foundation has a variety of resources for guidance on the caregiving journey, whether you’re a banker helping those through this time, a potential caregiver looking for ways to help or a senior needing caregiving information. Explore the ABA's resources:

What You Need to Know About Financial Caregivers, Formalizing the Caregiving Arrangement, Power of Attorney, Tips for Financial Caregivers, and a downloadable Financial Caregiver guide.

National Survey: Bank Customers Use Mobile Apps More Than Any Other Channel to Manage Their Accounts

For the fourth year in a row, U.S. consumers are conducting their banking via mobile apps more often than any other method, according to a new survey conducted by Morning Consult on behalf of the American Bankers Association. The national survey found that consumers continue to embrace digital banking channels, with 48% of bank customers using apps on phones or other mobile devices as their top option for managing their bank account and 23% using online banking via laptop or PC the most in the past 12 months. The next most popular banking methods include visiting a branch (9%), ATMs (8%) and telephone calls (5%).

“Mobile banking use accelerated during the pandemic and has only grown in the years since as people continue to enjoy the convenience of banking on the go,” said Brooke Ybarra, ABA’s senior vice president of innovation strategy. “While digital channels are used most frequently, and people clearly appreciate having their bank as close as their mobile phone, consumers continue to have a wide array of banking options to meet their needs. For those who prefer to conduct transactions in person, branch visits remain a widely available option.”

A breakdown of age demographics shows preferences vary among different generations. More than half of Generation Z (57%), Millennials (60%) and Generation X (52%) use mobile banking apps most often, while a plurality of Baby Boomers most often utilize online banking (39%). One in six Baby Boomers (16%) visit bank branches the most often, while only 4% of Gen Z and Millennials prefer to visit a branch. [See infographic for a full breakdown of top banking preferences by age].

ABA released an accompanying infographic highlighting the survey results. The data released today are the latest in a series of results gauging U.S. consumers’ preferences and opinions regarding banks and their services. ABA recently released additional survey data on credit union policy issues as well as data revealing that Americans are highly satisfied with their bank and competitive financial services marketplace, highly value overdraft protection and want Congress to allow banks to serve cannabis-related businesses. The full results for today’s survey questions are as follows:

When asked “In the past year, which method did you use most often to manage your bank account(s)?” consumers responded as follows:

Mobile (apps on smartphone or tablet) – 48%
Internet/Online (Laptop or PC) – 23%
Branches – 9%
ATM – 8%
Telephone (calls to your bank) – 5%
Mail – 2%
Don’t Know/no opinion – 5%

Age breakdown:

Gen Z (1997-2012)

Mobile — 57%
Online — 11%
ATM — 10%
Telephone — 9%
Branches — 4%
Mail — 2%

Millennials (1981-1996)

Mobile — 60%
Online — 14%
ATM — 9%
Branches — 4%
Telephone — 4%
Mail — 3%

Gen X (1965-1980)

Mobile — 52%
Online — 17%
ATM — 9%
Branches — 9%
Telephone — 6%
Mail — 2%

Baby Boomers (1946-1964)

Online — 39%
Mobile — 31%
Branches — 16%
Telephone — 5%
ATM — 5%
Mail — 1%

About the Survey

This poll was conducted by Morning Consult on behalf of the American Bankers Association from September 20-22, 2023, among a national sample of 2,211 adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

ABA Statement on Community Reinvestment Act Final Rule

By Rob Nichols, ABA President and CEO

“ABA and our members have long supported the goals of the Community Reinvestment Act to make sure people in every corner of the country have the chance to succeed. In demonstration of that commitment, banks of all sizes invested $287 billion in capital in low- and moderate-income areas in 2021 alone. We have also strongly supported modernizing the Community Reinvestment Act rules to reflect the realities of modern-day banking. The test for a CRA modernization rule is whether it incentivizes investment in underserved communities with requirements that are transparent, promote consistency and align with Congressional intent.

"We are still reviewing the nearly 1,500-page final rule released today, including changes from the proposed rule, to assess whether it meets our criteria. We are also closely examining whether the final rule can be reconciled with other major regulatory changes in play including the Basel III capital proposal. Feedback from our members will guide us moving forward."

ABA Statement on CFPB Personal Financial Data Rights (Section 1033) Proposed Rule

By Rob Nichols, ABA President and CEO

“As we have stressed throughout this rulemaking process, America’s banks firmly believe that customers own their own financial data, and no industry goes to greater lengths to protect that data than the banking sector. Today’s long-awaited proposed rule brings us one step closer to achieving our common goal of enhancing consumers’ access to their financial data and allowing them to share it safely with companies of their own choosing, whether that sharing is from bank to bank, bank to fintech, or fintech to bank.

"The principles-based approach taken by the CFPB to date has allowed for market-led efforts to innovate and standardize secure data access, and we hope this proposal will continue to support this progress. While we are evaluating the full scope of the proposal, we welcome the contemplated move away from screen scraping, the role of an industry standard-setting body, and the clarification around nonbanks' obligations to protect consumer privacy. However, it is critical that the Bureau right-size the scope of the rule pertaining to the types of accounts involved and the information data providers are required to share, as well as addressing the question of liability if something goes wrong. In addition, we remain concerned with the significant implementation costs our members will face, as well as the ambiguity caused by the CFPB’s parallel efforts in amending the Fair Credit Reporting Act.

“Further, as we stated in our 2022 petition to the CFPB, we firmly believe that other entities that are granted access to consumers’ data must be held not only to the same high standards but also to the same level of supervision related to data security, privacy, and consumer protection that banks must meet every day. We look forward to continuing to work constructively with the Bureau to achieve these and other vital objectives in the final regulation.”

CISA News: Fake Browser Update Scam

Make sure your organization understands how your software is updated! And though an old article – the premise is the same. 3 Basic Rules for Online Safety!

QUESTION OF THE WEEK

Q. We have a loan that was locked at 7.25% and disclosed on the LE at 7.25% but mistakenly changed to 7% on the Initial CD and then corrected on the Final CD back to 7.25%. Do the bank need to honor the 7% or can the loan close with 7.25%?

A. Assuming that the loan was locked via a rate lock agreement, whether or not the bank would be required to honor the lower rate on the initial CD may come down to the language in the rate lock agreement. However, the regulation itself does directly address when rates are mistakenly disclosed which do not align with the bank's rate that was locked pursuant to a rate lock agreement. If the agreement does not address this, the bank may want to consider honoring the lower rate to mitigate against potential UDAAP and/or contractual risks. See: https://www.consumerfinance.gov/rules-policy/regulations/1026/19/#f-2-ii

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 [email protected] and ask for our Membership Team.

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