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Building a Strong Credit Culture

By Eric E. VanDoren, CRC, Director, Wipfli

Building and maintaining a strong credit culture at your financial institution is no easy task. But that culture will go a long way in affecting the long-term success, or lack thereof, of your organization.

The COVID-19 pandemic brought with it plenty of stresses as lenders navigated various challenges and solutions. However, banks are coming out of a period in which credit losses are at historic lows, and problem loan reports and watch lists are about as small as they ever were.

Most lending institutions ended 2022 in a strong capital position (notwithstanding unrealized losses in the securities portfolio) with minimal credit issues, regardless of the strength of the institution’s credit culture.

However, current economic uncertainties are a reminder of the need to revisit your lending approach. Your institution needs a strong credit culture to weather volatility in market conditions and the economy going forward.

Here are the key components of a strong credit culture and some changes you may need to adopt to build yours.

An Effective Loan Policy

It starts with an effective, well-defined loan policy. This is not a one-size-fits-all document. The policy should be tailored to the institution based on the local area and economy, as well as the characteristics of your institution: size, strength, expertise, types of lending offered and the borrowing needs in the local economy.

This policy document should provide for effective supervision by senior management and the board of directors. It should not be a static document and should be reviewed and approved on an ongoing basis as the circumstances of borrowers, the economy and the institution itself change. The policy also provides guidance and outlines expectations for loan officers and staff.

Careful Underwriting

Gone are the days of the handshake loans with minimal to no underwriting. Effective loan underwriting is critical in understanding the risks in a borrowing relationship. Detailed underwriting and risk analysis will help management determine whether the level of risk in each credit application is acceptable given the expected reward.

Effective loan underwriting analyzes and discusses the five Cs of credit: character, capacity, capital, collateral and conditions (and some also add control and common sense). In most instances, underwriting is performed by the credit department, providing a view independent from loan production — although in some smaller institutions this may not be possible due to limited staffing.

Credit personnel should be knowledgeable and well-trained to provide the proper analysis and uncover the risks lurking within a credit and loan request and be able to effectively articulate any concerns held by internal staff, the credit committee, board of directors or others.

A Grading Matrix

To determine and quantify the level of risk in a credit application, a clear, measurable and objective-based loan grading system should be used. A grading matrix is a great tool to assist in determining the proper loan grade and helps provide consistency in grading throughout the organization.

While a perfect grading matrix does not exist, these key objective criteria carry the most weight:

  • Debt service ability
  • Collateral coverage
  • Leverage
  • Liquidity

Other criteria — including industry, type of collateral, guarantor strength and payment history — also matter but are typically weighted less.

Once the matrix determines the score, consider whether it seems appropriate. (If it doesn’t, an adjustment to the weightings or risk factors should be considered, and an adjustment may be appropriate.

Possible reasons for an adjustment might be the sudden loss of a significant customer or the untimely death of an owner or key employee.

A grading matrix is not a one-size-fits-all tool. The expectations for a commercial real estate credit may be different than a commercial and industrial credit. Underwriting and grading an agricultural borrower would not be the same as it would for a construction or development borrower. An institution may want to consider having three or four (or even more) different grading matrices in its arsenal.

A Diligent Credit Committee

The credit committee reviews new credit requests as well as previously approved and funded loans not just for approval but also to ensure the depth and detail of the credit underwriting and analysis is commensurate with the subject request. Is the type and structure of the loan appropriate and within policy parameters as dictated by senior management and the board?

If there are exceptions to policy, are they appropriately mitigated so the level of risk in the credit is reasonable given the risk appetite of the institution? The credit committee is also frequently a learning opportunity for junior personnel to become further immersed in the credit culture of the institution.

Proper Credit Administration

Another important but often overlooked part of the credit process is loan documentation and administration. This effort includes pre-lien searches, proper titling, approved terms and conditions and accuracy of documentation. Proper checks and balances and review of loan documents are needed prior to closing. It is too easy for something to slip between the cracks due to pressure from a loan officer, borrower or attorney, as well as myriad other distractions that administrators must face.

After the loan is properly booked and funded on the system, there may be follow-up filings and post-lien searches.

Thorough Portfolio Management

Effective loan portfolio management is imperative. More than just monitoring payment performance, it involves keeping in touch with the borrower performing a site visit, if appropriate. The institution may need to obtain and review periodic financial reporting from the borrower and/or guarantors as required in the loan agreement.

Check whether the financials raise any red flags or trip any covenant requirements. If so, investigate and find out why. Do not wait until a loan becomes past due to raise concerns with the borrower.

Effective loan portfolio management goes beyond individual loan monitoring. Is the level of risk in the portfolio changing and, if so, why? Stress testing is an important tool in determining the potential risk in individual credits as well as the portfolio.

Concentration levels need to be monitored. Are the various loan types within the concentration parameters outlined in the loan policy? If not, what is the plan to return to the policy threshold? Are those threshold levels still appropriate? If exceptions are made to the policy, consider whether the level is appropriate and be sure the exceptions are being tracked and reported to senior management and the board.

Another important aspect of loan portfolio management involves the management of problem loans. Even an institution with a strong credit culture will have the occasional hiccup. The question becomes how does the lender deal with the hiccups. The earlier the loan officer can identify a potential problem, the easier it is to consider more potential solutions.

Many pieces must come together to build a strong credit culture. For management to be diligent in its oversight, having the right people in place is critical. The quickest route to financial decline for a lender is to allow complacency to take hold in any critical aspect of the lending process. While every loan is a good loan at the point of origination, a strong credit culture improves the chances it remains so.

How Wipfli Can Help

At Wipfli, we are tuned into the concerns of financial institution clients on underwriting risks. The appropriate policies help build lasting relationships and create a positive impact. Our team’s seasoned lending professionals are ready to provide guidance on best practices and help your organization achieve its goals.

Contact us today, so that we can help gain confidence in the integrity of your loans.

Content Sponsored by Wipfli, a WBA Silver Associate Member.

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Under Pressure: Cost of Funds Strategies in a Rising Rate Environment

By Achim Griesel and Dr. Sean Payant

When rates were at record lows for long periods of time, the true value of low-cost funding may have faded into the background; however, low-cost core deposits continue to be the driver of long-term franchise value. Now, with rates continuing to rise — the one-year treasury exceeded 4% in September 2022 — the importance of low-cost funding is once again at the forefront.

The chart below is for a financial institution with strong low- and no-cost funding. In record low-rate environments, its cost-of-funds advantage over its peers was relatively small at 20–30bp. When rates started to rise from 2017–2019, it tripled to 60bp. For a $1 billion institution, that represents a $6 million increase to the bottom line. The current rising rate environment will lead to similar increases in profit.

In addition, deposit growth has stagnated in Q2 of 2022. On the macro level, FDIC insured deposits were down for the first time in a long time, and they were down significantly at 1.85% from the prior quarter. On the micro level, our data for consumer and business checking account deposit balances shows balances are down 3% and 7%, respectively, from the beginning of 2022. Even more importantly, the entire balance decline happened in May and June 2022, a trend we anticipate will continue.

Large institutions are aware of the value created by low-cost deposits, and they have the budgets to target core relationships that drive these benefits. For example, Chase is back to its $600 offer for opening a checking and a savings account. BMO Harris pays up to $500, and Citi has an offer of up to $2,000 for relationships with extremely high balances.

In addition to the cost of the offer, these largest banks spend a significant amount of marketing dollars to gain new core relationships and the benefits that come with them. When a financial institution does not commit to an always-on marketing strategy, it must provide above market offers to “buy” new relationships.

Community-based financial institutions (FIs) cannot compete by following a similar strategy. Unlike their large competitors, community-based FIs do not have the budgets for acquisition incentives of $500+ or the expansive budgets associated with marketing to acquire these relationships.

Compared to community-based FIs, large banks generally have more products and services as well as marketing teams who dwarf their smaller competitors. Given this reality, what does a community-based FI need to do to thrive?

To grow low-cost deposits, it is essential you follow a disciplined approach:

Step One: Your Institution must have a Sales and Service Culture. Good products are the foundation of a sales and service culture. You cannot ask your teams to sell, or consumers to buy, inferior products. If you want to know if your institution has good products, ask your customer-facing employees; they can tell you how consumers respond. Equally important is ensuring your team members are well-trained, understand and believe in your products and consistently execute your service expectations.

Step Two: Your Institution must be Strategic. Large institutions have the staffing and marketing budgets that allow them to frequently change offers, products marketed and/or desired prospects. For community-based FIs to compete, they must make data-driven, always-on marketing part of their core growth strategy. Your always-on marketing strategy supported by your sales and service culture will drive tangible results even when large banks are in periods of very high offers.

Step Three: You Institution must be Aligned. Your FI’s training and execution at the branch and through online channels must be aligned with your strategic marketing. Aligning marketing and execution is what reduces the acquisition costs for new core relationships. Without this alignment, your FI is left trying to compete on the offer alone, making it expensive to match those large bank offers previously mentioned.

Step Four: Measure, Inspect, and Reward! Any strategic initiative needs to be measured. Your core relationship growth strategy should have periodic — quarterly at least — goals. In addition, determine benchmarks to evaluate success. Inspect what you expect in order to ensure your sales and service standards are being consistently executed. Reward success! When your team members are fully aware of where they stand compared to their goals, it possible to evaluate results and reward successes.

Growing core relationships in order to grow low-cost deposits should be of primary importance in any rate environment; however, it is paramount in the current rising rate environment. Ultimately, out-performing your peers by 60bp will be welcomed by your board and celebrated by your management team. When you strategically align your culture, products, and people, competing for core relationships becomes easier and the $500+ offers from large banks become less effective. David will beat Goliath!

 

Griesel is president and Dr. Payant is chief strategy officer at Haberfeld, a data-driven consulting firm specializing in core relationships and profitability growth for community financial institutions. Haberfeld is a WBA Associate Member.

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Cinnaire Closes $86.3 Million Fund to Support Much Needed Affordable Housing in MidAtlantic Region

Cinnaire has announced the closing of the largest MidAtlantic Low Income Housing Tax Credit (LIHTC) Fund in the organization’s history. The $86.3 million fund will bring more than 691 units of affordable housing to the region. Since 2013, Cinnaire has partnered with financial institutions and insurance companies throughout the MidAtlantic to raise more than $417 million to support more than 4,800 units of affordable housing.

The financial intuitions investing in the 2022 Cinnaire MidAtlantic Fund each demonstrate a firm commitment to investing in the people and communities they serve.

The 2022 MidAtlantic Fund will support ten properties including The Flats – Phase V, the latest phase of a large-scale redevelopment of property built in the City of Wilmington in the early 1900s into newly constructed, high-quality affordable housing. The Flats – Phase V will provide 53-units of affordable homes for seniors and will include professional on-site management and supportive services coordination. The project will feature a community room, wellness room, lounge area for resident use, a fitness center, library, patio and gazebo, and a community garden.

“We are inspired and grateful for the tenacity of our developer partners who are committed to increasing quality, affordable housing in our MidAtlantic communities as well as the demonstrated commitment of the investors participating in this fund,” said Matt Hodges, Cinnaire senior vice president, business funding. “This fund will increase financial stability for families while creating jobs and boosting the local economy.”

“We recognize that safe, affordable housing has never been more meaningful, serving as a school, workplace, health center, and even church in recent years,” said Mark McDaniel, Cinnaire president and CEO. “Our team was inspired to reach higher and bring together developers and investors committed to increasing opportunities for affordable housing, the cornerstone of healthy communities.”

“Cinnaire’s capital raising team including Matt Hodges, Pam Hetz, and Josh Ghena, work in synergy with our business development team, Susan Frank and Jacob Stern, to bring investors and developers to the table to advance Cinnaire’s mission,” said Brett Oumedian, Cinnaire chief financial officer. “We’re proud of the collaborative efforts of our team members and we look forward to strategically deploying these funds to create a positive impact across our footprint.”

The 2022 MidAtlantic Fund will provide a tax advantaged investment and return to investor, positive Community Reinvestment Act consideration from bank regulators, and supports Environmental, Social, and Governance (ESG) investment strategies.

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Cinnaire Closes $211 Million Affordable Housing Fund

Largest Fund in Cinnaire’s History Targets Support of 1,900 Affordable Homes

Cinnaire announced the closing of a $211 million Low Income Housing Tax Credit (LIHTC) Equity Fund with capital raised from fifteen institutional investors. The fund is the largest single equity fund in Cinnaire’s 29-year history and will infuse capital investments into 25 affordable housing properties to create or preserve more than 1,900 homes in five states. Cinnaire’s 2022 Community Fund (Fund 38) raised equity from 12 repeat and three new investors.

“We recognize that safe, affordable housing has never been more meaningful, serving as a school, workplace, health center, and even church in recent years,” said Mark McDaniel, Cinnaire president and CEO. “As the need for safe, affordable housing has grown, our team was inspired to reach higher and bring together developers and investors committed to increasing opportunities for affordable housing, the cornerstone of healthy communities.”

The Fund will support 25 multi-family developments in Michigan, Indiana, Wisconsin, Illinois, and Minnesota. These developments include Terrace Heights in Wausau, WI, the revitalization of an aging affordable housing community that will provide 4 two-bedroom and 10 three-bedroom units for families in a largely Hmong community serving residents natively from Laos, Thailand and South China and Restoring Waters in St. Paul, MN, a 60-unit supportive housing community providing affordable housing with support services for women and families recovering from trauma. Overall, the fund will create 1,900 units equating to 3,055 bedrooms serving more than 3,800 individuals including 662 units for seniors or individuals and families with special needs.

“As demand for affordable housing continues to skyrocket, our team has leaned into our commitment to building strong, equitable communities by delivering financing options to increase high-quality, affordable options in our communities,” said Brett Oumedian, Cinnaire chief financial officer.

“We are inspired and grateful for the tenacity of our developer and investor partners who have demonstrated their commitment to expansive local prosperity, the human spirit, individual potential, and well-built communities through their record setting participation in this fund,” said Susan Frank, Cinnaire executive VP, business development. “This fund will increase financial stability for families while creating jobs and boosting the local economy.”

The fund brings Cinnaire’s total equity investment raised since inception to more than $5 billion.

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First American Capital Corporation, Inc. Celebrates 20 Years

After 20 years of providing Native American and other disadvantaged business enterprise entrepreneurs and small businesses with financial and technical assistance, the First American Capital Corporation, Inc. (FACC) is celebrating this milestone by launching a new brand and website. While the identity is updated, the commitment to its clients and partners will be stronger than ever.

Created in 2002 by the American Indian Chamber of Commerce of Wisconsin (AICCW) as a revolving loan fund, FACC has shared a website and associated communication systems with that organization since 2014.

As the organization has grown and needs have increased, Gary Mejchar, FACC Co-executive director/development and acting director of AICCW, said readers, clients, and stakeholders could no longer clearly differentiate between the two non-profit organizations.

“We did not want that to continue with funders and prospective funders and most importantly among those seeking AICCW services or FACC loan products,” he said. “It is time for us to differentiate ourselves from the AICCW, and more clearly delineate respective missions, products, and services.”

The new brand features a feather with vibrant, yet natural and warm colors, as well as First American Capital Corporation’s full name and its abbreviation, FACC. The remarkably simple geometric abstraction of the feather works well as it carries a strong upward movement signifying growth and prosperity, along with the varying levels of lending support that FACC provides. These elements combined with the tagline of “we honor your business” conveys trust, respect, and commitment to the client’s business endeavors.

“We are sharing the message that FACC is proud to be your partner, help you on your business journey and honor your commitment,” said Bill Beson, FACC’s Co-executive director/finance.

The new website is faccwi.org and its social media channels are @FirstAmericanCapitalCorporation on both Facebook and LinkedIn. With a more robust online presence, Mejchar said FACC will change its monthly e-newsletter to a quarterly endeavor.

FACC chose November, which is Native American Heritage Month, to launch its new brand to emphasize that the organization provides ongoing support through its lending programs and technical assistance programs with Native American-owned businesses, Tribal Enterprises, and other eligible markets in Wisconsin. Its work helps to benefit the statewide communities in which business owners operate and live.

FACC worked with O’Connor Connective, a strategic communications consultancy in De Pere, on creating its new brand and website.

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Financial Abuse of the Elderly

According to the Federal Bureau of Investigation (FBI), millions of elderly citizens are targeted annually with some form of financial fraud, and many of these attempts are successful. It has been estimated that seniors lose approximately $3 billion per year as a result of these scams, which are becoming more widespread and sophisticated. Surprisingly, much of the criminal activity is initiated by a friend or family member. A recent study by the University of Southern California revealed that 55% of respondents reporting any type of elder abuse categorized those acts as financial, and that family members were the most alleged perpetrators of elder financial abuse.

With these facts in mind, banks should maintain heightened sensitivity around transactions that involve elderly clients, particularly if these clients have historically managed their own finances and may be exhibiting signs of cognitive decline. Increased vigilance, in general, can assist in uncovering fraud.

Knowing the customer, coupled with a comprehensive employee training program, can act as a strong front-line tactic to help banks prevent and expose elder financial abuse.

Here are some best practices for recognizing “at-risk” clients:

  • Be on the lookout for non-family members being added to banking or investment accounts.
  • Monitor large money transfers and changes in spending patterns, as these could be signs that some form of abuse is occurring. A senior’s spending habits are often predictable in frequency, volume and payees.
  • Be alert for large amounts of funds exiting accounts to payees who had not been previously paid in any manner.
  • Keep detailed notes in the form of dated, journal-type entries, recording any spending or personal behavior that seems unusual. These notes would be in addition to those kept on risk tolerance, goals, objectives, etc.
  • Follow up with clients via phone or email to discuss any sudden financial decisions that seem out of character.
  • In addition to making personal contact, encourage the client to engage an independent attorney to assist in their financial matters.
  • Understand the laws that apply to the financial abuse of an elder client. Follow prescribed protocols if any illegal activity is suspected.
  • Implement internal procedures to elevate circumstances which may present the need for further inquiry and analysis to the appropriate decision-makers.

“It’s important not just to have a system in place to detect elder financial abuse, but to also act on situations where potential fraud or malicious intent has been identified,” said Kristin Roger, vice president and head of financial institutions at Travelers. “We know banks want to serve as trusted advisors to their customers, and by taking simple steps, they can better protect their customers from potential financial harm.”

Elder financial fraud is on the rise and counts as one of the more heinous abuses of trust that senior citizens might endure. Along with the financial damage inflicted on customers, incidents of elder financial fraud can cause serious reputational harm. Therefore, implementing a sound method of prevention, detection, identification and reporting of this criminal behavior is paramount.

Travelers is committed to managing and mitigating risks and exposures, and does so backed by financial stability and a dedicated team — from underwriters to claim professionals – whose mission is to insure and protect a company’s assets. For more information, visit travelers.com.

Travelers is a WBA Associate Member

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Cinnaire Awarded $55 Million New Markets Tax Credit Allocation from CDFI Fund

The U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded Cinnaire a $55 million New Markets Tax Credit (NMTC) Allocation. The NMTC award supports Cinnaire’s mission to advance healthy communities and will focus on projects supporting education, including early childhood, school-age children, and adults seeking vocation training opportunities throughout the Midwest and MidAtlantic regions.

Chris Neary, Cinnaire SVP – policy, research, and advocacy, joined Treasurer of the United States Chief Lynn Malerba, U.S. Senators Benjamin L. Cardin and Chris Van Hollen, U.S. Representative Kweisi Mfume, and CDFI Fund Director Jodie Harris to celebrate the announcement last week, which was made at Baltimore’s Lexington Market, a project made possible with NMTC investments from Cinnaire and Enterprise Community Partners.

“Lexington Market demonstrates what can be accomplished when projects in low-income communities can access needed financing for initiatives that will help revitalize them,” said Director Harris. “We often associate the New Markets Tax Credit with new buildings, but just as frequently, the tax credit allows for a new use of an existing property. The Lexington Market will breathe new life into this neighborhood by making fresh food available to residents, build local businesses and wealth, and provide a community gathering place.”

Since 2009, Cinnaire is a nine-time NMTC recipient with awards totaling $474 million.

“We’re excited to join our partners from the CDFI Fund, congressional leaders, and our industry colleagues at the Lexington Market to celebrate this announcement, which will further support projects like this,” said Chris Neary. “The NMTC program provided the financing needed to preserve the oldest public market in the country while creating jobs, bringing healthy food options to the neighborhood, and providing cultural opportunities for all residents to enjoy. Lexington Market is a prime example of the impact made possible thanks to the NMTC program.”

Over the history of the program, Cinnaire has leveraged NMTC investments to finance 47 high-impact projects in disinvested communities with a total development cost of $1.6 billion. Cinnaire’s NMTC investments stimulate communities economically and provide the most vulnerable residents with access to critical services such as vocational training and childcare.

“From the Marygrove Early Childhood Education Center, a project providing transformative cradle-to-career education opportunities for Detroit families, to the Automotive Technology Center at Ivy Tech, the NMTC program supports a wide range of impactful community projects in urban and rural communities across the country,” said Peter Giles, Cinnaire SVP – business development. “We encourage our congressional leaders to prioritize this proven tax incentive for bringing investment to communities that need it most by making the NMTC program permanent.”

The CDFI Fund announcement brings the total amount awarded through the NMTC program to more than $71 billion. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government.

“Twenty years ago, the Treasury Department announced the first New Markets Tax Credit awards, and for many economic development projects across the country since then, the New Markets Tax Credit has been a vitally important piece of the puzzle,” Treasurer Chief Malerba said. “This program has created or retained hundreds of thousands of jobs and spurred economic growth in many low-income communities across our country. It is important that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent.”

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Bankers’ Bank Announces a New Addition to the Team and Two Promotions

Bankers’ Bank, a leading correspondent bank for community banks located in Wisconsin, Illinois, Iowa, Indiana, Michigan, and Ohio, has announced the addition of new talent to the team and two promotions.

Brian Mickey

Brian Mickey – Bankers’ Bank is excited to welcome Brian Mickey as first vice president, risk management solutions. In this new role, Mickey is responsible for managing and developing the bank’s loan review and portfolio analysis services. He has three decades of experience in the banking industry with experience at small to medium sized commercial banks. He’s worked in many different facets of credit including underwriting, administration, loss mitigation, asset management, and business development with a primary focus on commercial real estate lending. Mickey is excited to partner with community banks and deliver a solution to better meet their needs. He holds a bachelor’s degree in finance from Loyola University of Chicago.

 

David Paxton

David Paxton – Bankers’ Bank recently promoted David Paxton as the new senior vice president, risk management solutions. In his new role, he is responsible for building and executing strategies to grow the bank’s risk management solutions. Paxton joined Bankers’ Bank in early 2022 as first vice president, business solutions. He has worked in community banking for more than 10 years, most recently at Amalgamated Bank of Chicago as the manager of their government services and union services departments. Prior to that role, he worked for ten years in Washington D.C. as a commercial banker. Paxton holds a bachelor’s degree in recreation management from West Virginia University. Paxton is looking forward to building relationships with community banks and providing solutions to meet their risk management needs.

 

Jim Kluck

James “Jim” Kluck – Jim Kluck has been promoted to first vice president, risk management solutions. Kluck is responsible for the management of the bank’s asset liability management and enterprise risk management solutions. He has been with Bankers’ Bank for 5 years, most recently as vice president, asset liability management. In that role, he was responsible for growing the business from five bank customers to over 50 bank customers. Kluck is focused on building long-term relationships with his customers and spends time to understand each customer’s unique circumstances and challenges to help deliver solutions to help banks better manage their risk. Kluck is a graduate of Marquette University with a masters of business administration. He is also a Certified Managerial Accountant.

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The Importance of Communication: How to Assist the Non-Technical in Understanding Technology

By Rob Foxx, CCBTO

As an information technology or information security professional, have you ever had a conversation with a member of your team and watched their eyes glaze over and think to yourself, ‘did they just understand a word I said?’ Welcome to the industry — this is part two in my series assisting technical and non-technical staff to better communicate on the subject of technology. Before breaking down a few simple ideas tech professionals can keep in mind when communicating with non-technical peers — we should first discuss where (and why) we as technology professionals falter in our communication.

Gaps in Experience

Like many of my peers, I spent my younger years studying both in college and independently to absorb as much information as I could in preparation for my career. In many ways, college helped me build my baseline for what I would need to learn both on my own as well as on the job. In addition to the standard classes within my major, I was also required to take speech classes like many college students. I did very well in speaking classes, however, my speeches were often on topics far more engaging to the audience than disaster recovery, firewalls, or server specifications.

Since then, I’ve spent much of my career working in teams with non-technical co-workers and, considering my target audience is usually within the banking industry, more than likely you too are a single individual or part of a very small team supporting your enterprise with minimal contact with those sharing your understanding of technology.

If you are of my generation or older, you were likely told somewhere along the way that you were very gifted or had aptitudes that leaned towards the up-and-coming field of information technology. Unfortunately, if you had any degree of awkwardness, it may have also been sold to you as something that would not require you to regularly communicate with people — a detail probably very few people have found to be true.

Having technical skills, aside from communication, is one of the most important skills one can have. On the upside, many of us have found being an effective communicator does not mean being a master orator or an excellent writer. As proof to that, I will tell you in all honesty that I am neither. I stumble over my words, and I need someone to proofread anything holding more content than a short email or technical report.

Four Things to Keep in Mind

As I continue through my career and often work closely with non-technical individuals, I have found that there are a few ways our profession can not only communicate better, but also build relationships for better future communications.

  • Do not get frustrated with your audience.

None of us learned our profession overnight, so do not set the expectation that your non-technical team members will learn yours after one chat. By getting frustrated, you do a great disservice to the effort of everyone who was patient enough to make sure you understood your profession well enough that you could work successfully and independently.

In further developing good communication skills, technical people will realize the importance of asking co-workers to be specific in their requests. You may frequently get calls from peers saying, “my computer does not work.” By asking follow up questions such as “what are you trying to do,” “what does the computer do when you do that,” or “walk me through the problem,” tech professionals will generally get a better overall response and diagnosis of the issue at hand.

  • Know your audience.

Knowing who you’re talking to and their level of understanding in the subject you are talking about is the major difference between public speaking and speaking with business leaders. Never make assumptions about their level of understanding or be afraid to ask how familiar they are with virtual environments. The least technical executive at your bank most likely still receives business articles that could offer a baseline understanding of the subject matter at hand. Either assuming too much or too little could lead to your target getting frustrated with you expending their limited time.

  • Find a beta user.

My original career goal was to become a software developer. I said from day one that I would want to hire someone who is older and less tech savvy to work with my team and test my product. If my non-technical mother could operate it without significant guidance, then I would have succeeded in developing a product that offers an intuitive and user-friendly design and would be well accepted for its ease of use.

To apply this idea in dealing with business leaders, remember that if you can explain it to someone non-technical — be it a spouse, parent, or even a helpful co-worker — business leaders should have a better chance of understanding what thoughts you are trying to convey.

  • Don’t be judgmental.

Make sure to have a non-judgmental way of communicating if a decision that is being made or considered is problematic. In technology, it may be stating that “this is a band aid to the problem,” or “we will need to readdress this problem sometime in the near future.” In information security, the cue is often “we can do that if you are willing to accept the risk and sign a risk acceptance form.”

Now that we have looked at the issues and a few things to help keep in mind, I encourage you to keep in mind that learning complex concepts and making decisions is a process. Talking over the heads of your coworkers and business leaders may only make this process more difficult. Remember, technology is your profession — not theirs.

Foxx is director – infosec and IT audit services for FIPCO, a WBA Gold Associate Member.

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Three Emerging Ways to Tap into Telemedicine

By Dr. Donna O’Shea, Chief Medical Officer of Population Health, UnitedHealthcare

One silver lining of the COVID-19 pandemic has been the wider adoption of virtual care, a trend that has staying power even as many people have returned to in-person appointments. In fact, 73% of people expect to access health care services virtually even after the pandemic ends.

While many people may think about telemedicine primarily as an alternative to in-person urgent care, technology is making it possible to access various health care services spanning routine, wellness and specialty. Importantly, virtual care has expanded from delivering care to people who are already sick, to helping prevent, detect and more effectively manage chronic conditions.

Virtual care may be appealing for a variety of reasons, including improved convenience, affordability and access, especially for the 46 million Americans who live in rural areas. As Wisconsin residents increasingly look to tap into technology to meet their health care needs, here are three emerging virtual care resources to consider:

Primary care. Primary care is a crucial part of helping people get or stay healthy. In fact, people with access to a primary care physician are more likely to receive high-value services, such as preventive screenings, and report better experiences compared to people without this type of care provider. Unfortunately, the number of Americans with a primary care physician has declined in recent years. To help reverse that trend, many local primary care physicians are now meeting with patients virtually, while some health plans have introduced options to help people establish and maintain an ongoing relationship with this type of care professional.

Physical therapy. For the 50% of U.S. adults affected by musculoskeletal conditions, such as back, knee or shoulder pain, physical therapy (PT) is often among the recommended initial treatments. With that in mind, some local physical therapists are now offering virtual appointments, allowing for education and coaching, and as a supplement for in-person care. When it comes to quality, a recent study confirms virtual PT was similarly as effective as traditional care for people rehabilitating after knee surgery. To make at-home PT support even more accessible, other programs use a smartphone’s front-facing camera and motion monitoring to provide people on-demand, 24/7 exercise feedback powered by artificial intelligence.

Dental care. If a toothache emerges at night or during the weekend, it may be difficult to know where to go for care. As a result, dental care ranks among the most frequently avoidable emergency room (ER) visits, despite the fact most ERs are not equipped to handle oral health issues. Virtual dental care may be able to help, offering people 24/7 access for advice and guidance to an appropriate setting for in-person care, such as a local dentist or a primary care physician. Some dentists and dental plans now offer virtual dental appointments, important resources given the connection between proper oral health and overall well-being.

As more and more people turn to technology to see or talk to health care professionals, these and other emerging virtual care options will play an increasingly important role in helping people get and stay healthy.

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