October 15, 2021

NMBA Associate Member Abrigo, Announces Strategic Growth Investment from Carlyle Abrigo, a leading technology provider of compliance, risk, and lending solutions for financial institutions, announced today it secured a strategic growth investment from funds managed by Carlyle. Abrigo will use the investment to accelerate its commitment to helping financial institutions manage risk and drive growth. […]

In the first half of 2020, the business outlook for many industries was uncertain. The abrupt decline in consumer demand caused many small business owners and corporate treasurers to seek the safety of increased liquidity and to pursue efficiency in cash flows. Since then, we have seen a dramatic change in business payment practices, prompting many community banks to reevaluate their current payment solutions and reconsider future investments.

As a community bank, nothing is more important to your success than understanding your customers and delivering value. What’s different today? There was a time when understanding your customer’s needs and overall financial behavior was, well, easy. Unfortunately, that’s simply not the case anymore.

The Federal Reserve’s development of its instant payment infrastructure, the FedNow Service, is making “good progress,” according to FedNow Program Executive Kenneth Montgomery. The industry-wide launch timeline has moved to 2023, and the pilot program started with various financial industry players, including PCBB. FedNow will increase the instant payment service options for financial institutions and their customers.

In June 2021, the National Student Clearinghouse Research Center released its Spring college enrollment data. The Spring 2021 semester found that college enrollment had dropped nearly 5% overall, a jarring decrease. This means there were approximately 727,000 fewer students than the year prior. There was hope that the spring semester would increase enrollment, but that didn’t prove the case. Now, given a myriad of factors, there is concern that the decrease in enrollment in higher education could become a permanent issue barring significant changes.

The New Mexico Bankers Association held its 109th Annual Convention on August 25-27 at the lavish Ritz Carlton Grande Lakes Hotel in Orlando, Florida. For many, this was the first time in nearly two years that we’ve had the opportunity to travel and enjoy face-to-face interaction with our fellow bankers, sponsors, and vendors.

There was a time when building a top-notch management team seemed to be a relatively straightforward task. Times, however, have certainly changed. Traditional benefit programs and merit pay systems often fall short as tools for attracting and retaining such talent. Banks of all sizes compete for experienced lenders with relationships/portfolios they would like to have at their bank. With the growing demand for quality performers, how can your bank secure the management team needed to ensure maximum bottom-line results?

America’s banks have a longstanding commitment to helping reduce the number of unbanked and underbanked individuals and families in the U.S. July marked a major milestone in that endeavor, with an announcement from the Cities for Financial Empowerment Fund that the number of Bank On certified deposit accounts now available has surpassed 100. At the time this column was written, it was up to 114.

In this quarterly Digest message, I wanted to touch on two important Congressional issues and a couple of state legislative matters that are likely to be considered by the 2022 Legislature.

Well, it is that time of year again when Balloon Fiesta is upon us and fall is in the air. This year is even more special because New Mexico will sponsor a live, in-person Balloon Fiesta event. Exciting to see us beginning to make progress in reopening our state for business.