Industry News, Articles and Events Blog

StartFresh Checking®

7/14/2020

by IZALE Friend, Tim Bode, Stratis

The popularity of courtesy overdraft programs combined with recent COVID financial stress has resulted in many potential checking customers not qualifying for a traditional checking account. With fewer customers qualifying, checking account growth rates are lower, and account acquisition costs are higher. To help financial institutions overcome this challenge, the value of a product Stratis created has become even more viable to change this trend. Over the past 12 years with great success they installed it's StartFresh Checking® program in over 50 banks and 2 credit unions.

At Banterra Bank, Head of Retail Debra Becht saw that they were turning down about 15% of checking applicants due to past closure history. She didn't like losing potential customers, and more importantly not helping people with their banking needs. Further, their small business customers were also experiencing frustration: they wanted to pay all of their employees via direct deposit, but many employees don't qualify for a traditional checking account due to previous closure history.

The StartFresh program has been a great solution. It helps Banterra Bank serve a previously underserved segment in a way that meets their needs, is profitable, and earns compliance favor. As Debra recently shared:
"...we had our quarterly compliance committee meeting yesterday. We love this product and the performance. It was a great CRA factor in our recent exam. Just wanted to say thanks for all you do."

What worked for Banterra can work for your bank or credit union as well; through this program, your StartFresh account holders will:

Avoid the embarrassment and inconvenience of not qualifying for a checking account
Rebuild their financial reputation
Feel more empowered and more "in control" of their finances
Get direct deposit for payroll and government checks
Avoid costly check cashing fees, and
Eventually "graduate" to a more favorable traditional checking product!

By implementing StartFresh Checking, your bank:

Serves more customers
Increases customer satisfaction
Establishes longer lasting and more loyal customers
Grows deposit and checking accounts
Enhances fee income
Opens accounts more efficiently
Creates cross-sell opportunities
Serves a new segment of customers in a consistent and compliant manner.

Stratis has pioneered this program, implementing it most effectively since 2007. No other firm has more experience in the "second chance" space. With unemployment at an all time high, there is a population that truly needs this option.

Stratis is available to speak with you about your particular challenges to see if StartFresh Checking can work for you!

For more information, contact your IZALE Representative.

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COVID19 Financial Next Steps

7/2/2020

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by Todd Taylor, Taylor Advisors

As financial institutions across the nation cope with market and economic challenges created by COVID-19, anticipating next steps to manage balance sheet "risks" AND improve or protect profitability is becoming increasingly more difficult.

Below are excerpts from Taylor Advisors' four-part Pandemic Mini-Series. Please click the corresponding hyperlinks below to read the eBriefs associated with the four ALCO positions of liquidity, capital, investments, and interest rate risk.

In Part 1 of our mini-series, we discussed the importance of robust liquidity stress testing, a comprehensive contingency funding plan, and anticipating potential changes in loan and deposit portfolios.

In Part 2, we discussed potential impact on capital from asset quality deterioration, margin compression, and other balance sheet changes.

In Part 3, we discussed investment strategies, as portfolios and cash usually make a meaningful contribution to institution's overall interest income.

In Part 4, we turn our attention to interest rate risk management and look at challenges relating to exposures to falling/low rates. Many financial institutions are beginning to feel pressure on interest income and earning asset yields, frequently compounded by funding costs already at historically low levels.

We hope the topics covered will benefit you and your clients as you progress through these unprecedented times.

If you have questions, contact your IZALE Financial Representative. 855-492-5334

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A True Story of Long Term Disability Insurance Helping with Peace of Mind

5/14/2020

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by Scott Richardson, Founder/CEO IZALE Financial Group

After almost 20 years of practice, my friend, John*, became a well-respected Ob/Gyn. He had become an expert in DaVinci robotic surgery. In addition to performing it on his own patients, he traveled the country demonstrating the benefits of DaVinci and training others to use it.

During his down time, John loved to fish and watch his kids enjoy water activities. We spent many days each summer soaking in the sun and unhooking Walleye and Northern Pike and Crappies.

John is “retired” now, forced into by the age of 50 due to Multiple Sclerosis or MS. His disability progressed quickly before stabilizing, but it took away his ability to operate DaVinci. His gait changed and he became less stable. Not only could he not work, his fishing is far less frequent than it used to be.

As tragic as John’s situation is, it could have been far worse. John worked for an employer who valued its people enough to offer a strong group long-term disability or LTD plan. Since John met the requirements for benefits (and there’s no current cure for MS to allow him to recover), 60% of his salary is replaced until he’s eligible for full Social Security benefits.

Like all group LTD, however, there’s a maximum benefit that is far below John’s pre-disability earnings. John had a good neighbor and friend, however, who showed him the value of insuring the risk that his employer didn’t. The individual policy that John bought “covers the gap” and nearly 70% of all of John’s pre-disability earnings have been replaced.

His children have been able to attend college. He’s kept his home. And while John wishes every day that he could see patients (and fish!), he sleeps better at night knowing his financial foundation is solid.

May is Disability Insurance Awareness Month. Ask us at IZALE how we can help you to help your people sleep well at night, too.

*Not his real name.

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May Is Disability Insurance Awareness Month!

5/1/2020

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Did you know not all Disability Coverage is the same for every employee?

Disability. When most of us hear the term, we picture someone injured in an accident. But the reality is far different: Multiple sclerosis. Parkinson’s. Anxiety. Musculoskeletal issues. Heart conditions. Back disorders. These are some of the leading causes of disability. They can strike any of us at any time. In fact, before age 65 the risk of having a long-term disability is almost 30% greater than the risk of death.

An employer-provided group long-term disability or LTD plan is a great foundation and one of the best benefit dollars to spend.

But group LTD was never intended to serve the needs of your highest-paid people who are often driving the most value for your organization. Group LTD formulas always have a cap on the benefit amount and rarely cover anything other than base salary.

What sounds like a strong enough benefit (“66 2/3% of salary is covered”) falls far short of actual cash compensation. This Graph charts the results of actual analysis for one client.

What’s worse is that you may discover this limit when it’s too late to do anything about it. May is Disability Insurance Awareness Month, and we invite you to have a conversation with us to learn how we helped this client bridge the gap and provide greater financial security for their key people.

Call to Request the Group LTD Analyzer

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A Special Message from CEO/Founder

3/18/2020

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By Scott Richardson, JD, CLU, ChFC

IZALE Financial Group is well-prepared to respond to the rapidly-changing environment triggered by COVID-19.

We have mostly been a remote workforce, with just the national administrative office staffed. Employees there have worked remotely from time-to-time to balance family life, so moving to more frequent remote work is fairly simple. We will still staff the administrative office since it is our main source of mail, however, we will do so on a staggered basis so that employees minimize contact with each other.

Protecting information security is critical. We have a robust Written Information Security Protocol or WISP plan in place. In addition to other practices, we use MFA for accessing systems and a VPN for working remotely. This applies to employees as well as independent representatives.

We have asked all of our representatives to stop having face-to-face meetings. Going from one client or prospective client to another is not in accordance with current guidance from public health experts. We greatly enjoy the personal interactions we have with you and look forward to getting back to normal, but in the meantime we can serve clients via phone calls, emails, and even video calls.

While we expect no disruption to monthly reporting for BOLI or quarterly reporting for Split-Dollar Loan plans, we rely solely on the carriers to provide us with policy values. We have been in contact with them and while they have plans in place to continue timely reporting, that could be disrupted by further outbreaks affecting their workforce or limits imposed by authorities. We will clearly communicate any change in our reporting commitment.

We understand that many of you had plans for buying or adding BOLI or executive benefits and those plans may be put on hold in the short-term. We understand there are other priorities on which your institution and communities need to focus. IZALE is well-positioned to weather this delay. We will continue to send our newsletter and add relevant information to our online blog. We will work to update and expand the content of our online library and encourage you to visit it to learn more about how we help our clients and your peers.

We are grateful for the opportunity to serve our clients, and wish you the best as you implement your own plans. We’ll get through these challenging times together!

R. Scott Richardson, JD, CLU, ChFC
President & CEO
IZALE Financial Group
2400 Big Timber Road, Suite 103A
Elgin IL 60124

Contact Scott by Phone Mobile or by Email