Credit Crisis
Soon we will begin to see signs of the holidays showing up in our stores. It is a reminder that the years move faster and time is ticking down on 2015. I have always found September to be a great month for reflection. We can look back on what happened this year and how will fourth quarter begin to prepare us for 2016. Many of you that I have been speaking with or calling over the last 16 years know there is only one thing I fear.
Where are the future banking leaders going to come from and how are banks going to replace the Credit Experience that is departing by the day. Credit Analyst are seeing the biggest wage increase annually because demand today and for the future will be through the roof. Many banks are balking at the salary demands because when the managers were 2-3 years into their career their salary was not even close to an entry level credit analyst now.
The issue gets even bigger when you realize many of the best lenders have typically gone through a formal credit training program in their career. So with a lack of supply of credit analyst will greatly reduce the strong Relationship Managers and Approval Officers.
In my opinion this is really going to create a major challenge for those smaller and regional banks because their cost are going to go up and put more pressure on earnings. Again another year will pass and we kick this issue down the road as very few banks are investing in credit training programs.
Consultant
9 年Sixth C is also known as CYA......Cover Your Assumptions.
Senior Private Wealth Banker & Mayor Pro Tem, Allen, TX NMLS #747488
9 年Good post Jeff. The "dinosaurs" like us add the sixth "C" of lending, common sense.
Vice President at Valley Bank
9 年I have been a Banker for 25 years + and have completed a formal Bank Credit Training Program. Over time it has been proven that it is far cheaper to hire Credit Training Grads than to provide a formal training program. Nevertheless, in the lower Middle Market regulation and compliance has turned the lending officers job into more science than art. It is metrics driven with common sense taken out of the equation. The Banks are trying to model financials into an approval formula with Human interaction and overrides kept to a minimum. That being said as the "dinosaurs" retire they are being replaced with far less experienced people. There will always be a place for Banks where the lending officer not the model makes the decision Banks will be forced to train people on the job in an apprenticeship role.