Banking – Page 3 – Community Broker News and Views

5 Ways to Get More Bang for Your Banking Buck

by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First

Summer wouldn’t be summer without fireworks. But there’s another way you can experience a big bang this summer — by reducing your banking fees. Here are some smart and easy ways to lower fees and get more banking “bang for your buck.”

Eliminate costly checking accounts. Why pay a fee to access your own money when you can take advantage of free checking? Many banks promote free checking, but require you to maintain high minimum balances or to jump through transactional hoops. Be sure to read the fine print.
Leverage your banking relationships. If you have multiple accounts – checking, savings, and loans — take advantage of a relationship checking package. These accounts let you pool balances to earn special rewards, such as better rates and fee waivers.
Avoid overdrafts. One of the biggest expenses people face in their day-to-day banking is paying overdraft fees. According to a report from the Consumer Financial Protection Bureau, consumers paid $34 billion in service charges in 2012, with a staggering 61% from overdraft fees. In fact, if you’re not careful, a $2 cup of coffee can cost you as much as $35 in overdraft fees. The best way to protect yourself is to get overdraft protection, by linking your savings account to your checking account or by obtaining a line of credit. If you have online banking, you can also sign up to receive email alerts that notify you when your balance is low.
Pay more than the minimum due on credit cards. If you have a credit card, you probably know that interest charges can be costly. The best way to avoid them is to pay off your balance in full before you even accrue interest. If that’s not possible, always try to pay more than the minimum balance.
Watch ATM fees. While it’s great to be able to get cash wherever you go, it’s not worth it if you end up paying costly ATM surcharge fees, which can range between $2 to $4 per withdrawal at some banks. Try to use ATMs within your bank’s network, or get a checking account that offers rebates when you use other banks’ ATMs.

Take the time to review your banking fees and to implement these smart tips. You may end up with even more money in your pocket to have fun or, in the spirit of summer…have a blast!

The Future of Banking: It’s Still Personal

by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First

Technology. It’s constantly changing the way we live – and bank. Where we once took out our checkbooks in the grocery line, today we’re swiping debit cards. Where we once trekked to the bank to make deposits, we’re now making them in a snap from our smartphone cameras.

There’s no question, banking is changing in ways many of us never thought possible. And it’s not just banks that are the catalysts for this change. With services like Apple Pay and Google Wallet, which let you use your mobile device to pay for purchases, technology companies are putting new ways to transact into consumers’ hands. And that brings up an important question:

Will you even need to have a bank in the future?

In short, the answer is yes. Banks offer a very significant benefit that these technology companies can’t – a relationship. Maintaining a relationship with a bank will allow you to –

Access a range of financial services – under one roof. Technology companies may bring you the latest innovations, but they can’t do something banks do very well – offer multiple financial services in one place. Banks can provide you with checking, savings, mortgage, even retirement solutions – allowing you to simplify your financial life and leverage relationship benefits.
Get personal service. Technology companies are great on convenience, but often not so great on service. Smaller technology companies, in particular, usually operate with fewer staff, which means if you encounter a problem or have a question, you can’t get assistance as easily as you could from your bank. And when it comes to something as important as your money, getting personal assistance is critical.
Be protected. Banks understand the importance of protecting your account and personal information and are vigilant about dedicating resources and staff to ensure the highest level of security. Knowing you’re with an institution that’s dedicated to guarding your money can help you sleep better at night.

The bank of the future.

The good news is that having a banking relationship in the future doesn’t mean you have to sacrifice technology. The optimal solution is to choose a bank that’s dedicated to investing in technology and partnering with technology companies to deliver the high level of convenience you want without sacrificing the protection and personal service you need.

At DNB First, for example, our customers can access a full range of financial services that allows them to bank when and where they want. If or when they need assistance or guidance, they can simply pick up the phone or visit one of our branches for personal service. And let’s face it, no matter where technology takes us in the future, the importance of that will NEVER change.

7 Ways to Improve the Health of Your Business

by Vince Liuzzi
Executive Vice President and Chief Banking Officer
DNB First

We live in a health-conscious world. If we’re not stepping on the scale or analyzing labels on groceries, we’re counting steps and calories on pedometers in order to live longer and healthier lives.

However, what many of us, at least those who own businesses, neglect, is regular assessment of the health of our businesses to maximize their longevity, too. It’s not difficult. and you don’t need a scale, a pedometer, or even a doctor. You simply need to look at your cash flow.

Cash flow is one of the most important predictors of business health. If you have positive cash flow (more money coming in to your business than going out), your business is likely in good shape.

Here are some important exercises to help improve the health of your cash flow – and ultimately, your business:

Know where you stand. At any point in time, you should know your cash position. If you’re spending more money than you’re bringing in, it’s time to take a long hard look at the future of your business. Online and Mobile Banking services are quick, convenient ways to help manage cash.
Cut expenses. A key part of understanding your cash flow is knowing and understanding your expenses. Be sure to track monthly expenditures and regularly think about ways to reduce them.
Expedite collections. One of the biggest culprits behind cash flow problems is managing receivables. Do customers pay your invoices in a timely manner? Many banks offer cash management services that help you collect and manage customer payments more efficiently.
Accept credit or debit card payments. Another way to improve collections is to offer customers convenient ways to pay, including debit and credit card payments. With these merchant services, funds are deposited into your account quickly, maximizing cash flow.
Deposit funds more efficiently. If your customers pay by check, utilize Mobile Deposit or Remote Deposit, which allow you to deposit checks more conveniently, eliminating trips to the bank and providing faster access to your funds.
Maximize idle funds. Don’t leave extra cash sitting in an account where it doesn’t earn interest. Sweep accounts allow you invest those funds and put idle balances to work for you.
Pay efficiently. Use electronic services to pay suppliers and other vendors more efficiently. By scheduling automatic payments on the dates they’re due, you’ll get full use of the funds for the maximum amount of time.

At DNB First, our knowledgeable business specialists are available to review your cash flow position, and suggest ways to strengthen the health of your business. And the best part is, they won’t make you step on the scale!

When Soaring College Costs Hit Home

“Poverty is hereditary – it comes from your children.”

Comedian Phyllis Diller may have been joking when she said that, but anyone who is raising a child today knows that there’s nothing inexpensive about having kids. In fact, according to a report from the U.S. Department of Agriculture, “it will cost an estimated $241,080 for a middle-income couple to raise a child born last year for 18 years.”

If that doesn’t shock you, consider an even more eye-opening fact: that figure doesn’t include one of the most expensive costs for parents – financing a college education. According to The College Board, an “in-state public college for the 2013–2014 academic year averaged $22,826 while a private college averaged $44,750.” In the last 30 years, college costs have quadrupled.

A shared burden

The burden of financing college education isn’t just falling on parents; today’s students are amassing significant debt. As the infographic below shows, the average student graduates with nearly $25,000 in debt, giving them an uphill climb on the road to financial success. The burden of this debt may be why they delay getting married and purchasing homes.

So how can parents help their children finance the costs of college and fill the gap where Financial Aid and other student loans leave off? One popular solution is actually close to home — home equity credit. With home equity, parents can borrow off the equity in their homes to pay for college costs, and take advantage of some very significant benefits, including:

Lower rates than those available with private student loans.
Potential tax savings.
The ability to borrow and repay funds with a home equity line.
Interest-only options to keep payments low.
The flexibility to use funds to cover any educational expense — from books to computers to room and board and tuition.

Here to Help.

At DNB First, we have competitive home equity options, including a special rate on a home equity line. Stop by or call us today to learn more. Of course, as with any financial decision, it’s important to carefully weigh your options. After all, college is one of the biggest investments you will make as a parent, so you’d better do your homework.

10 Mind-blowing Facts About The Cost of College Tuition Created by: TakeLessons

Avoiding Jeopardy with Reverse Mortgages

It’s Final Jeopardy. Contestants eagerly await as Alex Trebek, the man with all the answers, smugly reads the final clue of the game.

“A type of mortgage where the bank pays you.”

Within a millisecond, the Jeopardy champion pounds the buzzer and proudly declares “Reverse Mortgage.”

After the dreaded “fail” buzzer goes off, Alex disdainfully declares, “No sorry, that is incorrect. The correct answer is “What is a Reverse Mortgage?”

In reality, this question – What is a reverse mortgage? – has been posed more and more frequently today as mature adults and baby boomers struggle with rising expenses and their adult children worry about how they can help their parents manage them.

So what exactly is a reverse mortgage?

By definition, a reverse mortgage is a type of home loan that lets borrowers age 62 or older receive cash payments based on the equity in their homes. So instead of a borrower making payments to a mortgage lender, the lender makes payments to them, hence the term reverse mortgage.

A growing trend for those growing older.

Reverse mortgages offer some unique benefits, not the least of which is that they generally allow aging homeowners to remain in their homes (borrowers usually do not have to pay back loans until they are no longer living in their homes). Reverse mortgages can also provide a steady stream of income to help seniors manage rising expenses – a benefit that’s become increasingly attractive as cost of living and healthcare expenses have risen.

But despite their popularity, reverse mortgages come with many drawbacks, including risk of foreclosure and higher costs than those associated with traditional loans. Because of the risk involved, potential borrowers must complete a counseling program from a government-approved agency to help them evaluate the pros and cons of obtaining a reverse mortgage. And, they must be careful to avoid overzealous lenders who might try to sway them toward reverse mortgages when a traditional option, such as a home equity loan, or no loan at all, may be a wiser decision.

A model reverse mortgage success.

If used properly, a reverse mortgage can be a very wise investment decision as demonstrated by a retired family friend. The friend had inherited an older home in an affluent community. Though he owned the home outright, the home needed major renovations, including upgrades to the electrical and heating systems. Without the savings to finance these expenses, my friend was faced with three choices: to sell the home and rent, tap into his retirement savings to pay for the repairs, or obtain a reverse mortgage. He chose the latter and received a lump sum distribution that he used to finance repairs and renovation in the home. It proved to be a wise decision as the renovations helped improve the home’s value, and of course, allowed my friend to remain in the home and avoid renting or depleting his retirement nest egg.

Not always the best move.

Reverse mortgages are not for everyone. Because of their high cost, and the risk involved with putting one’s home at risk, borrowers and their children must be careful to use reverse mortgages wisely and not for frivolous purposes. Such decisions can put a homeowner in a more tenuous situation than they were in before they sought the reverse mortgage – in real jeopardy.

Employee Engagement 2.0 – A Holistic View of Engagement in Today’s Workplace Environment

Statistics show that 78% of business leaders rate employee retention and engagement as critical or important to the success of their business. Organizations are looking for new and different ways to understand and improve employee or team member engagement. Effective and meaningful, active employee engagement is truly a competitive differentiator for the high performing business.

Active employee engagement goes far behind an annual survey facilitated by human resources that companies use as a measurement for employee morale. It speaks to the culture an organization fosters, and its willingness to make the right investments within the environment benefitting much-loved employees. In a recent study by Deloitte, three key areas of strategic focus on employee engagement were identified: Lead and Develop, Attract and Engage, Transform and Reinvent. These three priorities go far beyond a typical survey “temperature check” followed by an executive summary turned into an action plan – many companies still call that an engagement program. Its en excellent study with rock solid conclusions and some pretty interesting tools and resources.

In past decades, Gallup and other leadership organizations have led the way around the concept of employee engagement program surveys. Employee engagement has in reality, been a topic companies have considered since the industrial revolution. These concepts were essentially rooted in the late 1800’s by an industrial engineer Frederick Taylor who was looking for ways to improve industrial efficiency. In his book “The Principles of Scientific Management” Taylor theorizes that four principles of scientific management center around the engagement of employees and how their attitude impacted productivity in the steel industry. It was ground breaking work for its time – but that was over 100 years ago!

Developing, enhancing and maintaining a high performing work environment is truly a complex issue to tackle. It blends an organization’s mission and values with its people, culture and performance. Once people join an organization, companies must continuously improve, redesigning and developing the work environment to make it more enjoyable and rewarding, making the employees happier and more productive. In today’s environment, companies need to update the way they look to engage employees. With the influx of younger workers and the proliferation of technology, organizations need to change the way they think about engagement making the workplace environment more flexible, modern, humane and enjoyable. Organizations must build an environment that is fun, meaningful, stimulating and rewarding to attract and retain high performing employees in today’s workforce.

Forward thinking companies truly understand the critical need to go beyond traditional engagement survey programs to create more productive and successful work environments. They design jobs, change the work environment, add benefits, invest in people and develop managers. New employees hired into these organizations are screened for culture and job fit to ensure success. Effective hiring, on-boarding, training and development programs have never been so important.

Josh Bersin Principal and Founder of Bersin by Deloitte was recently quoted in a recent study published by Forbes magazine stating, “Let’s change our thinking and move beyond the concept of engagement. If we really achieve the goal of making organizations “irresistible”, we can make work fun, meaningful and enriching for everyone.”

Vince Liuzzi

EVP, Chief Banking Officer

DNB First, Banking since 1860

Community Banking – a critical role in the US economy

Recently, I made the switch from a mega-national bank to DNB First, an authentically local, community-based bank in the Greater Philadelphia suburbs operating in the region since 1860. It’s been an absolutely wonderful experience and I am left wondering why it took me so long to make the switch!
Some well known mega banks deliver products, services and pricing nationally, and yet attempt to compete and win business on a local, market level. Few are successful in keeping the customer at the center, maintaining local focus and presence, while complying with national big-bank policies, procedures and expectations. Customers can get lost in the shuffle.

I came across this article about local banking and the impact it has on the economy, and the community we live and work in. The article highlights some of the obvious (and not so obvious) comparisons between community and mega-banks. Of course selecting a financial services partner is an important and highly personal choice. At the end of the day, consumers must work with those trusted professionals that are committed to helping them achieve their most important hopes, dreams and desires.

The article cites some pretty important distinctions to make when evaluating financial providers. Read more…..

Vince Liuzzi
EVP, Chief Banking Officer at DNB First

Community-based banks have long played a critical role in the U.S. economy and this has never been more important than in today’s unprecedented times. The central principle driving community banks is “The Relationship”.

This approach provides customers financial services based upon the ongoing personal interactions that improve the flow of information, resulting in an understanding of all of your financial needs and allowing for customized solutions.

Community bank executive officers, including the President & CEO, are typically accessible to their customers. Megabank CEOs are headquartered in far-away office suites with little customer dealings.
Community banks focus attention on the needs of local businesses. Conversely, many of the nation’s megabanks are structured to place a high priority on serving large corporations and investment banking activities on Wall Street.
Community banks are strong supporters of local nonprofits both with their dollars and volunteer hours.
Community banks channel most of their loans to their depositors’ neighborhoods, helping to keep local communities vibrant and growing. Megabanks may take deposits in one state and lend in others.
Community bank executives and directors typically are deeply involved in local community affairs, while large-bank executives are likely to be detached physically and emotionally from the communities where their branches are located.
Many community bankers are willing to consider character, family history and discretionary spending in making loans. Megabanks, on the other hand, often apply impersonal qualification criteria, such as credit scoring, to all loan decisions without regard to individual circumstances.
Community bankers can offer nimble decision-making on business loans because decisions are made locally. Megabanks usually have limited loan decision-making authority at the local level.
Community bank boards of directors are local businesspeople, leaders and your neighbors who often played a role in starting the bank. It’s unlikely that big bank corporate board members live, work or operate businesses in your neighborhood.

Get Ready for Tax Season!

If you haven’t done so already, taxes will be due before you know it! Here are some helpful resources to assist you in preparing:

1) Bonnie Lee of Fox Business outlines 5 tips for preparing for taxes this year.

2) Need help preparing your taxes? If you qualify, the IRS has Free Tax Preparation by volunteers.

3) H&R Block put together this helpful checklist of everything you should put together in order to file your taxes.

4) Finally, know anyone filing for the first time? Teenagers with their first job? This is a very simple to understand video that lays out the basics of filing.

If you have more questions, consider seeing a personal finance expert to talk you through. Happy Filing!

Vince Liuzzi

Thinking of a refinance – what’s holding you back?

Since 2012, many consumers across the United States took advantage of low rates and refinanced their high rate mortgages, lowering monthly payments and freeing up cash for other purposes. If you happen to be one of the approximately 20 million households who have never refinanced, and are paying 6% or more on your mortgage, you may want to take advantage of the current environment and refinance now, but hurry – time’s a wastin!

Continue reading “Thinking of a refinance – what’s holding you back?”

How to Choose a Mortgage Lender

Reminds me of an earlier post here. Another topic your community wealth adviser can help you with!