Welcome To
The Bottom Line

This year’s edition of Money20/20 was back in full force. It was a well-attended event by all players in the ecosystem, a definitive difference from last year when lingering COVID-19 travel restrictions kept many would-be attendees on the sideline.

The conversation among the 13,000 registered attendees in Las Vegas, and countless others working the periphery, expanded beyond last year’s darling – cryptocurrency – to encompass other issues financial institutions will face as they head into a potentially turbulent 2023. This year’s top themes included safety and security, innovation, and evolving regulation.

Here are a few recurring observations from our time there...

Federal regulators continue to advise on how banks and credit unions conduct due diligence for digital assets solution providers.

A lapse in vetting could expose FIs to an array of risks, ranging from reputational impact to non-compliance with government sanctions and BSA requirements.

We're beginning to get some clarity from the White House regarding its approach to digital assets, including the potential development of a Central Bank Digital Currency (CBDC).

With the release of a wide-ranging report, the White House appears to be embracing digital assets and their potential for transparent, cost-efficient, and inclusive financial services. A background press call provided even more insight into the Biden Administration's thinking.

The Biden Administration's March executive order seeking information on digital assets' usage and security set a flurry of activity into motion. This included a mandate for the Treasury Department to deliver a report on the future of money and payments systems. The agency issued a public request for comment in July, and SRM quickly responded, drawing from our detailed and ongoing coverage of cryptocurrency and other digital assets.

You can read our complete submission here; however, the condensed version below highlights the key points we believe every financial institution should consider as policies toward digital assets take shape.    

Sometimes it’s hard to believe 30 years have passed since our founder Curtis Downs took the concept of developing contract benchmarks and applying them to help banks, credit unions, and others achieve critical savings – the underlying value proposition behind SRM. That foundation has allowed our clients to add more than $5 billion to their bottom line over the years.

It's fascinating to look back three decades and see the rate of change that has taken place in the financial services industry. As we acknowledge our company’s 30^th anniversary this year, I want to highlight some significant changes in financial services that have also challenged and motivated SRM to evolve.

Many financial institutions have decided now is a better time to hire talent rather than buy another bank or credit union, enter new markets, or add business lines. The proof is in several high-profile recruiting announcements from small and midsize financial institutions.

CapStar Financial Holdings in Nashville, TN, will expand outside its home state for the first time after hiring a First Horizon banker in Asheville, NC. Encore Bank in Little Rock, AR, will move into Boulder, CO, after recruiting a former market president at Great Western Bancorp.

IC Federal Credit Union in Fitchburg, MA, hired former Avidia Bank executive CarrieAnne Cormier as its chief operating officer. Citadel Credit Union in Exton, PA, hired a team of bankers from Santander Bank with plans to launch a business banking division in August.

Columbia Banking System in Tacoma, WA, and Western Alliance Bancorp in Phoenix, AZ, are entering Salt Lake City after recruiting bankers from large competitors such as Bank of America, U.S. Bancorp, and Zions Bancorp.

Banks are also going after talent to grow or add new lines of business. RBB Bancorp in Los Angeles hired three bankers to beef up its Small Business Administration lending. Encore hired a banker to build a business banking community association.