Tag Archive for: Associate Members

Posts

AI’s Hidden Risk: What Will You Do With the Time It Saves?

Brent Hafele

By Brent Hafele, president & CEO performance architect at Vibrancy Unlocked, a WBA Bronze Associate Member

What if the biggest risk of AI is not adopting it too slowly?

What if the bigger risk is what happens after it starts working?

Across banking, leaders are exploring how AI can save time, streamline work, and improve efficiency. The gains are real. Yet if AI creates hundreds of hours of additional capacity over the next few years, there is an important question almost no one is asking:

What should leaders and employees do with the time they get back?

That question kept coming to mind while attending Ben Udell’s AI Masterclass at the recent WBA BOLT Summer Leadership Summit.

Udell did an excellent job helping bankers understand practical applications of AI and how it can improve productivity, communication, critical thinking, and efficiency. The session reinforced something many leaders already know: AI is no longer a future technology. It is a present opportunity.

But efficiency alone is not the finish line.

Email made communication faster. The internet made information easier to access. Mobile phones made us constantly reachable. Automation reduced countless manual tasks.

Yet many leaders would struggle to argue that work has become less stressful, less demanding, or less overwhelming.

In many cases, the time we saved simply became filled with more work — more emails, more meetings, more requests, more expectations, and more noise.

Without intentionality, AI may follow the same path.

That is the hidden risk.

The danger is not merely that banks fail to use AI. The greater risk is that banks use AI successfully, create meaningful new capacity, and then unintentionally convert that capacity into more activity rather than more value.

Research on time poverty suggests this is not a harmless outcome. Feeling pressed for time has been associated with lower well-being, poorer health, increased stress, reduced creativity, and lower relationship quality. Other research on goal conflict found that when people experience competing demands, stress and anxiety increase, which makes them feel even more time-constrained.

In other words, more efficiency does not automatically create more breathing room. Without intentionality, it may create room for more pressure.

This is why leaders need to think beyond AI adoption and begin asking how they will invest the time AI creates.

I have begun referring to this opportunity as The Capacity Dividend™.

The Capacity Dividend is the time, attention, and organizational capacity created when efficiencies — such as AI, automation, delegation, or better systems — reduce the effort required to complete work.

For CEOs and executive leaders, their capacity dividend may be particularly valuable because some of the most important work they do — thinking, discerning, coaching, building relationships, developing successors, and shaping the future of the organization — rarely feels urgent, even though it is essential.

The question is not whether AI can create this window; the question is whether leaders will use it intentionally.

For some leaders, that time may need to become strategic thinking.

For others, it may become reflection, prayer, planning, relationship building, customer conversations, professional development, coaching, mentoring, succession planning, or innovation.

For some, the highest-value use may be rest.

That should not be dismissed.

Professional athletes do not perform at their best by ignoring recovery. Executives, managers, lenders, operations leaders, and frontline employees are no different. A tired leader making rushed decisions is not a strategic advantage.

The same principle applies to employees.

If AI helps employees complete work more efficiently, leaders should not automatically assume that every saved minute should be converted into more tasks. Some of that capacity may need to be reinvested into learning, collaboration, problem-solving, customer care, or the kind of human interaction that strengthens culture and engagement.

A Harvard Business Review article on generative AI and work fulfillment reported that employees who used AI for certain professional development and focus-work tasks experienced higher joy and effectiveness. The article also noted that many employees reinvested saved time into more enjoyable work such as problem-solving, interpersonal interaction, and learning.

That matters.

Because the better question is not simply, “How much time did AI save?”

The better question is, “What did that saved time make possible?”

Bankers should be asking:

How much time are we saving?
Where is that time going?
Is it reducing pressure or increasing expectations?
Is it improving customer experience?
Is it strengthening employee development?
Is it giving leaders more time to think, coach, and lead?
Is it giving CEOs more time to focus on strategy, succession, culture, and stakeholder relationships?
Is it helping people do more meaningful work?
Or is it simply creating a faster version of the same exhaustion?
AI may become one of the most powerful productivity tools banks have ever used. But productivity alone has never been the goal.

The goal is stronger banks, better leadership, healthier teams, more engaged employees, better customer service, and stronger communities.

That will not happen automatically.

Technology can create capacity. Leadership must decide how to invest it.

AI helped me write this article.

With the time it saved, I took my dogs for a walk.

The technology created the capacity.

Choosing how to invest it was still my job.

 

References
Engeler, I., Stan, A., Trupia, M. G., Bernardino, A., & Quoidbach, J. (2025). What do you do with the time saved by generative AI tools? Many waste it, managers included. SSRN. https://doi.org/10.2139/ssrn.5127094

Etkin, J., Evangelidis, I., & Aaker, J. (2015). Pressed for time? Goal conflict shapes how time is perceived, spent, and valued. Journal of Consumer Research, 42(3), 394–406.

Giurge, L. M., Whillans, A. V., & West, C. (2020). Why time poverty matters for individuals, organisations and nations. Nature Human Behaviour, 4(10), 993–1003.

Lovich, D., Sargeant, R., & Smith, J. (June 2024). How Gen AI Can Make Work More Fulfilling. Harvard Business Review.

/by

Rising Gas Prices May Be Quietly Hitting Bank Employees

Brent Hafele

By Brent Hafele, President & CEO Performance Architect at Vibrancy Unlocked, a WBA Bronze Associate Member

For many bank executives, rising gas prices may feel like an annoyance. For some bank employees, however, they can feel much more like a pay cut.

That pressure is already showing up in the broader economy. Walmart CFO John David Rainey recently warned that consumer behavior is shifting under the weight of higher fuel prices, saying, “I think consumers are going to feel more of that pressure from higher fuel prices.”

Bank employees are consumers, too. For team members with longer commutes, lower wages, young families, or existing financial stress, a sharp increase in fuel costs can quickly become a meaningful burden. And when employees feel financially strained, that stress does not stay in the parking lot. It can follow them into the branch, into customer conversations, and into their overall level of engagement at work.

That matters. Employee engagement is directly tied to productivity, service quality, retention, and the customer experience. At a time when banks across Wisconsin are already working hard to attract and retain talent, even “temporary” financial pressure can create lasting organizational consequences.

According to Gallup’s 2025 State of the Workplace research, U.S.-based employee engagement has dropped to just 31%, the lowest level since 2017. Even more concerning, 50% of surveyed employees reported they are watching for or actively seeking a new job.

Gas prices alone are not the cause of disengagement. But they can become one more stressor layered on top of an already stretched workforce.

Hopefully, the current spike in fuel prices is temporary. Still, bank leaders would be wise not to dismiss the impact. When employees feel squeezed, banks feel it too.

Here are a few practical ways banks can support employees without immediately raising wages:

  1. Adjust schedules where possible. Consider longer workdays with fewer commute days for roles where coverage allows.
  2. Encourage carpooling. Help team members coordinate rides, especially across branches or shared geographic areas.
  3. Offer hybrid flexibility where feasible. Not every banking role can be remote, but some back-office, administrative, or leadership functions may allow occasional flexibility.
  4. Provide temporary fuel support. Gas gift cards, mileage stipends, or short-term transportation assistance can help soften the blow.
  5. Listen for financial stress. Managers do not need to pry, but they should pay attention. Increased irritability, distraction, absenteeism, or turnover risk may signal that employees are carrying more pressure than usual.

The best banks do not wait until employees disengage or leave before responding. They notice the pressure points early and take practical steps to support their teams.

Because when employees are under pressure, service, culture, and retention are never far behind.

/by

2026 Shows Signs of Renewed Optimism to the Housing Market: Here’s What Real Estate Professionals Should Know

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

After several years of high mortgage rates and tight housing inventory, the real estate landscape is beginning to show signs of potential progress. While it will take time to restore broad affordability, market indicators point to 2026 as a year that could bring more balance, opportunity, and predictability for buyers, sellers, and investors alike.

Positive Market Trends Taking Hold

A range of promising developments are creating favorable conditions for borrowers and the professionals who serve them:

  • Mortgage rates are trending downward. As rates gradually decline from recent highs, homeownership may become more accessible for a wider range of clients.
  • Inventory is increasing. More homes are coming onto the market, giving buyers greater choice—and allowing agents and lenders to better match clients with the right fit.
  • Buyer activity is on the upswing. Renewed confidence is drawing more people back into the market, fueling opportunities for real estate transactions of all types.

What Does This Mean for Your Business?

These positive shifts translate to more options, more stability, and more opportunities for your borrowers to achieve their real estate goals—whether they’re searching for a primary residence, a second home, or a promising investment. It’s also an ideal time for mortgage and real estate professionals to re-engage with clients who may have put their plans on hold during the past few challenging years.

At QRL Financial Services, we’re here to help you and your team navigate these evolving conditions and explore new opportunities. We offer deep market knowledge, proactive support, and streamlined lending solutions designed to help you better serve your clients and grow your business.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender, QRL, a division of First Federal Bank, NMLS: 208902, 4705 W US Highway 90, Lake City, FL32055.

/by

2026 Housing Market Outlook: Why More Moves May Be Ahead

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

The market may have felt stuck, but 2026 is set to regain momentum. Closing out Q4, we’re seeing signs of increased mobility ahead which could open more doors for buyers, sellers, and the institutions supporting them. Partner with QRL Financial Services to finish the year strong and be January-ready with integrated, cost-effective mortgage solutions customized to your needs.

More Homes Will Sell

Pent-up demand is real. Life events such as new jobs, growing families, downsizing, and lifestyle changes which don’t pause for market cycles. As conditions gradually improve, more of these delayed moves are expected to happen in 2026, lifting sales from recent lows.

Mortgage Rates Could Continue to Ease

The number one thing buyers have been waiting for is lower mortgage rates. After peaking near 7% earlier this year, rates have started to ease. Many forecasts suggest that trend could continue into 2026, though not in a straight line. Expect modest improvement with occasional volatility as new economic data rolls in. Even small dips can meaningfully improve affordability and monthly payments.

Home Price Growth Will Be Moderate

On a national scale, prices are expected to rise. As rates ease and more buyers return, demand should keep some upward pressure on prices and help prevent broad declines. While a few markets are seeing slight pullbacks, a major nationwide drop isn’t in the forecast, and most areas remained up substantially versus five years ago. Local trends will vary based on inventory.

Bottom Line

After a quieter stretch, 2026 is shaping up to bring more movement and more opportunity. With sales projected to rise, mortgage rates trending lower, and price growth at a steadier pace, the stage is set for a healthier, more active market. Use Q4 to prepare, so you start the new year with momentum. Partner with QRL Financial Services for fully integrated, cost-effective mortgage solutions, a dedicated coordinator, and nationwide execution, so you can scale confidently, elevate the borrower experience, and capture next year’s opportunity now.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender. First Federal Bank NMLS: 408902, 4705 W US Highway 90, Lake City, FL 32055

/by

The Time for Asset Recycling is at Hand!

Submitted content by Tom Evans, CFA, Senior Consultant with HUB | Taylor Advisors, a Division of HUB Financial Services, a WBA Associate Member.

Liabilities have dominated the Net Interest Margin (NIM) equation since the Fed started the most aggressive hiking cycle in a generation. Traditional interest rate risk simulations broadly understated the repricing nature of funding and liability sensitivity within balance sheets. As short-term rates escalated, liability repricing broadly outpaced longer-duration assets. A shifting Fed policy with rate cuts to close out 2024 has provided welcomed reprieve on the short end of the yield curve. Rationality has largely returned to deposit competition and funding costs are coming under control, with many banks seeing interest expense stabilize and start to decline. This article will break down the NIM for each side of the balance sheet and emphasize why bankers need to shift their focus to assets in order to sustain and expand NIM through the coming quarters.

The Liability Story
Since the onset of the hiking cycle, funding costs escalated by ~200bps within the first six quarters of the cycle (Figure 1). Old and new competition emerged to challenge the traditional bank deposit market, including money market mutual funds, US Treasuries, brokered deposits and other FinTech alternatives. Technology and the ease of transferring balances did no favors for bankers, with liquid, safe, high-yield alternatives just a few clicks away. Customers willfully exercised deposit optionality in their favor as rates increased to the detriment of bankers’ NIMs.

 

Source: S&P Capital IQ

The good news is that 100bps of rate cuts helped to bend funding cost curves. The bad news remains multifaceted: rates are still elevated, many deposits remain at-risk earning well below market-rate alternatives, and many banks are slow to invest in deposit technology and products to meet evolving customer needs. Over a long enough time horizon, cost of funds should converge with Fed funds. Further funding cost pressure is a lingering risk for NIMs, albeit less pressing than in prior years.

The Asset Story

To keep pace with 200bps of higher funding costs within 6 quarters, banks would need ~40% of assets to reprice in a similar time period. The truth is that many bank assets were tucked away into longer duration loans and investments to achieve some semblance of a return during the zero-interest rate environment. As rates escalated, customers within these loans and investments willfully ignored their optionality, preferring to savor the benefits of below-market coupons and foregoing any prepayments. Asset duration and repricing extended beyond initial expectations.

The good news is that time is the ultimate remedy for interest rate risk, and time is beginning to tilt in bankers’ favor. Figure 2 details the 5-year US Treasury over the last 5.5 years. Historically, the 5-year tenor on the Treasury curve is a widely used benchmark for the majority of asset pricing, with the most common loan being a 5-year fixed rate loan priced at a spread of 250-300bps, broadly speaking.

 

Source: Bloomberg

Using that spread as a benchmark, 5-year fixed rate loans refinanced/originated in 2020 and 2021 likely priced off of a 70bps 5-year Treasury. Odds are these assets can be recycled at maturity/repricing from coupons in the 3.25-3.75% range (+/-) to current market rates ranging from 6.5-7% (+/-). Similar duration investments made during that same time range were purchased at even tighter spreads, with roll-off yields potentially ranging from 70bps to 2.5%. The next six quarters of asset cash flow recycling will likely be THE key determinant of NIM performance, similar to the first six quarters of liability recycling to start the rising rate cycle.

Opportunity to Optimize the Asset Mix
As bankers eye a potential wave of asset recycling, now can be the ideal time to optimize the asset mix. At HUB Financial Services, we talk a lot about asset mix, selection and pricing, with mix being the primary driver of earning asset yield performance. Bankers should be planning a roadmap for asset recycling, understanding the unique cash flows within their loans/investments and targeting the optimal asset mix and selection allocations. Additionally, key risk positions must be considered, including:

  • Liquidity:
    If investment cash flows are recycled into the loan portfolio, how will this impact the level of on-balance sheet liquidity in the future? What strategies can be evaluated to free up investment collateral for lending and liquidity?
    How will this asset recycling opportunity impact future secured borrowing capacity at the FHLB and the FRB? Are banks being strategic about pledge-ability within lending?
  • Capital:
    How will concentration risk be managed if the bulk of lending opportunities continue to be in sectors with higher regulatory scrutiny (i.e. C&D and CRE)?
    How will shifts within assets impact risk-based capital metrics (i.e. low risk-weighted investments recycled into higher risk-weighted loans)?
  • Interest Rate Risk:
    Given lessons learned from 2022-2024, how can asset duration be managed better moving forward? What types of loans might complement the interest rate risk profile?
    What other tools can be implemented to manage interest rate risk within new loan production or for the entire balance sheet?

HUB Financial Services’ Take:
The time for asset recycling is at hand! Those institutions that have strategically planned for asset optimization and addressed their risk positions will be best suited to capitalize on this opportunity. Stable to growing loan portfolios should see outsized NIM benefits for the coming quarters. Customer optionality should not be ignored. Those risks that cannot be controlled within the balance sheet should be evaluated for off-balance sheet management. Derivates can be a tool for bankers to buy back optionality and protect the NIM for the next interest rate risk stress test.

An Associate Member of WBA, HUB Financial Services provides consulting and advisory services in the areas of ALCO, capital, liquidity, interest rate risk and investments to community-based financial institutions throughout the country. To learn more, visit www.tayloradvisor.com or contact Tom Evans at tom.evans@hubinternational.com and Brett Walburn at brett.walburn@hubinternational.com.

/by

What Cybersecurity Framework Is Right for You?

Sponsored content by Wipfli LLP, a WBA Silver Associate Member.

By Pedro J. Pinto, CISA, Manager

Cybersecurity is vital to any organization that deals with sensitive data, especially financial institutions. Cyberattacks cause significant losses, reputational damage, regulatory fines and legal liabilities for financial institutions.

Therefore, it is essential to have a robust and comprehensive cybersecurity strategy that aligns with the organization’s business objectives, risk appetite and regulatory requirements.

One way to achieve this is to adopt a cybersecurity framework that provides a structured and consistent approach to managing cybersecurity risks, implementing best practices and measuring performance. Common benefits of implementing these frameworks include:

  • Enhancing the security and resilience of information systems and assets.
  • Reducing the likelihood and impact of cyber incidents.
  • Establishing a common language and understanding of cybersecurity risks and controls.
  • Improving the communication and collaboration among stakeholders, including regulators, auditors, partners and even customers.
  • Facilitating the continuous improvement and adaptation of cybersecurity practices.

Common cybersecurity frameworks

Several cybersecurity frameworks are available today, each with its own scope, objectives and methodology. This table lists some details about the most common frameworks used by financial institutions:

Organization  Framework  Benefits  Features 
National Institute of Standards and Technology (NIST)  Cybersecurity Framework (CSF)  Provides a common language for understanding, managing and expressing cybersecurity risk.  Consists of five core functions: identify, protect, detect, respond and recover. 
Federal Financial Institutions Examination Council (FFIEC)  Cybersecurity Assessment Tool (CAT) 

  

 Helps banks assess their cybersecurity preparedness.  Consists of a series of assessment statements to determine an institution’s inherent risk and cybersecurity maturity. 
National Credit Union Administration (NCUA)  Automated Cybersecurity Evaluation Toolbox (ACET)  Helps credit unions assess their cybersecurity preparedness. 
Center for Internet Security (CIS)  Critical Security Controls (CSC)  Provides a prioritized set of actions for improving cybersecurity posture.  Consists of 20 critical security controls for effective cyberdefense. 
Financial Services Sector Coordinating Council (FSSCC)  Cybersecurity Profile  Provides a scalable and efficient approach for financial institutions to assess and manage cybersecurity risk.  Consists of diagnostic statements to determine an institution’s cybersecurity risk and maturity level. 

Which cybersecurity framework works best for your institution?

Any of these frameworks would do the job, but the question remains: Which one is best for your institution? Here are some considerations to help you choose:

1. Regulators

As regulators are the ones who ultimately have the final say on the adequacy of your institution’s cybersecurity preparedness, it is important to understand their expectations. The FFIEC CAT has been the standard used by banks and credit unions. In 2019 the NCUA published an updated assessment tool (ACET) specific to credit unions, though CAT and ACET are very similar.

In 2019, the FFIEC published a press release encouraging institutions to use a standardized approach to assess and improve cybersecurity preparedness and listed several frameworks that could be used for that purpose, signaling that the adoption of other standards, including industry-agnostic ones, was acceptable. In addition to the CAT/ACET, the list included the FSSCC Cybersecurity Profile, the NIST Cybersecurity Framework and the Center for Internet Security (CIS) Controls.

In 2023 the OCC published Bulletin 2023-22: Cybersecurity Supervision Work Program (CSW). They made it clear that institutions could use any framework they chose, but that the new program would more closely align with the NIST CSF.

2. Third-party providers

Another consideration is your third-party providers, especially if they play a more hands-on role in your institution’s cybersecurity. In some cases, the provider will help you complete the cybersecurity assessment, so it’s worth considering what frameworks they are familiar with so they can better help you or better understand requests you may have for improving certain controls.

3. Leadership

One consideration that sometimes gets overlooked is how the results from assessments can be reported. Depending on the level of comfort your board of directors and leadership team have with more technical information, it might be beneficial to choose a framework that provides the information in a more easily understandable format.

4. Internal teams

Lastly, it is important to consider who in your organization will be responsible for performing information security and cybersecurity assessments. This individual or team needs to be comfortable with the framework and understand its components to make it truly useful to the institution and not just a “checkbox” report to provide to regulators and auditors once a year.

Consider using one of the many risk management platforms available today. These platforms allow you to choose one or more frameworks as the basis for your information security and cybersecurity risk assessments and are automatically updated if the frameworks themselves are updated.

How Wipfli can help

Choosing and implementing a cybersecurity platform is essential to the long-term health and well-being of your financial institution, and our team of dedicated cybersecurity professionals can help put you on the path to long-term peace of mind. From selecting and refining a strategy to measuring performance, we’re with you every step of the way to help keep your data secure and your workflow safe. Learn more about our cybersecurity offerings.

/by

Understanding the RMD Delay: What Retirees Need to Know

Submitted content by Lisa Haberman, Ed.D., QKA, ChFC, CLU,  with Ascensus, a WBA Associate Member

The SECURE 2.0 Act has brought significant changes to retirement planning—especially for retirees aged 72 and older. One of the most significant updates is the delay for retirees to take required minimum distributions (RMDs), which now begin at age 73 (age 75 in 2033). While this offers flexibility, it also introduces new challenges that retirees should understand.

What are the Key Issues Retirees Are Facing?
Let’s take a closer look at the concerns retirees are facing when it comes to taking RMDs.

  • Distribution Confusion. RMDs must be calculated and taken separately from each employer-sponsored retirement plan (e.g., 401(k) plan). Aggregation of RMDs is allowed only for individual retirement accounts (IRAs)—not for 401(k) plans or other employer-sponsored retirement plans.
  • Tax Timing Risks. Account owners who delay taking their first RMD until April 1 of the following year (their required beginning date) will take two distributions in one calendar year, potentially pushing them into a higher tax bracket.
  • Penalty Tax Exposure. While the penalty tax for missing an RMD has dropped from 50 percent to 25 percent (and even 10 percent if corrected timely) of the amount that should have been distributed but was not, the tax consequences remain.
  • Spousal and Beneficiary Complexity. New rules affect how spouse beneficiaries and successors handle inherited assets, including the introduction of “hypothetical RMDs” and the 10-year payout rule.

Are There Certain Planning Strategies that Retirees Should Consider?
Effective management of RMDs now requires not only careful timing and adherence to distribution rules but also the integration of proactive tax strategies in order to optimize retirement income and minimize unnecessary tax burdens. Here are a few examples for participants to consider.

  • In-Plan Roth Rollovers (IRRs). An IRR allows individuals to roll over non-Roth assets in a 401(k) plan, 403(b) plan, or governmental 457(b) plan to a designated Roth account under the same plan. Although the taxable portion of the IRR will be included in the individual’s gross income for the year of the rollover, designated Roth account assets are no longer included in RMD calculations, so completing an IRR before reaching RMD age may provide more flexible tax-free income during retirement.
  • Rolling Over Assets to a Roth IRA. Similar to an IRR, rolling over assets to a Roth IRA before reaching RMD age may help individuals avoid paying taxes in retirement. Pretax assets that are rolled over from a retirement plan to a Roth IRA are taxable in the year of the distribution. Plan participants who choose to roll over pretax assets to a Roth IRA should consider their total taxable income during the year and whether it is in their best interest—tax-wise—to do so.
  • Qualified Charitable Distributions (QCDs). Although not available to plan participants, QCDs allow IRA owners age 70½ and older to satisfy RMDs without increasing their taxable income. Plan participants interested in taking a QCD may want to consider rolling over their retirement plan assets (if eligible) to a Traditional IRA before they reach RMD age.

What Can You Do Now to Help Your Clients?
Here are a few practical steps that you can recommend to clients to help secure their financial future.

  • Review retirement account balances and confirm their RMD start date.
  • Consult with a financial advisor to model their distribution strategy.
  • Stay informed through IRS updates and trusted financial education sources.
/by
,

Six Steps to Strengthen Your Financial Institution’s Call Report Preparation Process

Sponsored content by Wipfli LLP, a WBA Silver Associate Member.

By Danielle M. Damon, CIA, Manager

How much time does your financial institution spend on its call report each quarter? If yours is like most, the answer is probably a considerable amount.

Based on to data collected by the Treasury, Federal Reserve and FDIC, banks typically invest anywhere from 39 to 44 hours to complete and file a call report.

When it comes to preparing a call report, process matters. Inefficient, poorly documented or overly complex processes can hinder your work and, worse, make it difficult for regulators or auditors to understand how the reported figures were derived.

Meanwhile, a structured, transparent and well-documented approach can significantly improve both your accuracy and efficiency. Keep reading to learn how to strengthen your call report process to deliver better results.

Why structure matters

A standardized structure forms the foundation of a repeatable and reliable process. If you have a clear process to follow, you can do so again and again while usually getting a consistent outcome.

Using a standardized structure can also be a significant time-saver. Not needing to reinvent the wheel each quarter will often cut down on the amount of time you need to invest in your call report, making the underlying work less grueling for your team.

One effective approach is to integrate core-generated reports into a spreadsheet workbook that maps general ledger and other data points using basic formulas. This allows the underlying data to change each quarter while maintaining a transparent and consistent framework.

The value of transparency

Call report instructions require institutions to retain supporting workpapers for three years. Including references to core or vendor reports in your mapping enables reviewers to quickly trace data points to their sources. Retaining your calculation workbook alongside referenced reports and documents strengthens support for internal and external reviews and also serves as a valuable training tool for new staff.

Improving your call report process doesn’t have to be overwhelming. Here are several practical steps to enhance accuracy, efficiency, and transparency:

1. Assess current processes

Conduct a thorough review of your current preparation process. Identify steps that are overly complex or require multiple data sources. Look for items where manual adjustments to core reports are required.

Then ask why these complexities exist. Do you really need such an intricate approach, or are you doing things a certain way because that’s how it’s always been done?

If it’s the latter, explore alternatives. For example, if multiple reports are used to gather the same data, consider whether a consolidated report could be built to reduce manual effort.

2. Standardize templates and mapping

Develop standardized call report templates that include mapping and report references. This will require an investment upfront, but it will improve accuracy and reduce the preparation time for future call reports.

3. Balance technology with transparency

While automation tools can streamline reporting, many automation tools create a “black box” effect, where manual or other adjustments are masked by the automation. As a result, auditors or examiners may struggle to verify your call report data.

Here, you should strive to strike a balance between leveraging technology and maintaining visibility into the process. When considering automation, think about who needs to understand your call report and whether automation might hinder their ability to do so.

4. Invest in training and development

Provide regular training for staff involved in call report preparation. Stay current with changes in reporting instructions, regulatory requirements and accounting standards.

You should also be sure to incorporate any updates into your current process.

5. Commit to continuous improvement

Strengthening your call report process is not a one-and-done task. The tools you have available to work with are constantly changing, so allow your workflows to change with them.

As technology and data availability evolve, regularly evaluate your tools and processes to identify opportunities for improvement.

6. Enhance documentation practices

Create a checklist to track required documents to make sure you have everything you need to start.   Your checklist will also help ensure all referenced materials are retained with the calculation workbook.

As a result, you will be more prepared for audits and exams and more be able to effectively transfer knowledge.

How Wipfli can help

Making the investment to update your call report process will not only make it more efficient and easier on your team, it will also enhance accuracy, improve audit readiness and support knowledge transfer for new hires or successors. By investing in structure, transparency and continuous improvement, your financial institution can turn a burdensome task into one that’s more streamlined and reliable.

Wipfli helps financial institutions to improve processes, strengthen performance and stay audit-ready. Ask our team of advisors and former industry professionals how you can do more with your existing resources in order to boost your results. Learn more here.

Read more:

Back to basics: Fiduciary account reviews

The rise of the fractional COO: A strategic solution for financial institutions

4 challenges financial institutions have that can be solved with finance dashboards and financial reporting software

/by
,

Be Ready for the Fedwire Funds Service Migration to ISO 20022

Sponsored content by Wipfli LLP, a WBA Silver Associate Member

By Michelle Bader, Internal Auditor

Big changes are coming to financial messaging, and preparation is key. On July 14, 2025, the Fedwire Funds Service will officially transition to the ISO 20022 format, replacing the legacy Fedwire Application Interface Manual (FAIM). This update will put the U.S. in line with more than 70 countries that have already adopted the ISO 20022 messaging standard. To help ensure a smooth transition, financial institutions must take steps now to prepare their systems, train their teams and minimize disruptions. 

Why ISO 20022 matters 

Switching to ISO 20022 isn’t just about keeping up with global standards; it comes with distinct benefits for financial institutions, including: 

Better data quality: More structured and detailed data reduces errors and improves transparency. 

Increased efficiency: Standardized messaging simplifies payments and reconciliation. 

Improved compliance: Granular data makes it easier to meet regulatory requirements like AML and OFAC screening. 

Seamless global transactions: Aligning with international standards helps facilitate cross-border payments. 

Steps to prepare 

All financial institutions must be ready to send and receive ISO 20022 messages starting July 14, 2025. Here’s how to help ensure a successful transition: 

Staff training and education 

Your team will need to understand the new message formats, including: 

  • pacs.008 (customer credit transfers) 
  • pacs.009 (financial institution credit transfers) 

The Federal Reserve offers training sessions, quick reference guides and hands-on practice opportunities to help institutions master the updated system. Training is available through June 25, 2025, on the Federal Reserve’s website. 

System testing and validation 

Testing is essential to help ensure a smooth rollout. 

Financial institutions should use the depository institution test environment (DIT2) to: 

  • Simulate real transactions with other institutions. 
  • Verify message formats and template accuracy ahead of the deadline. 

Additionally, the MyStandards readiness portal offers sample messages and test cases to help institutions confirm compliance before the transition. 

Contingency planning 

Even with proper preparation, unexpected challenges can arise. Financial institutions should develop backup strategies, such as: 

  • Alternative transaction methods through correspondent banking arrangements. 
  • Manual wire processing as a fallback option. 

Attestation and compliance 

To keep operations running smoothly, the Federal Reserve requires institutions to submit attestations verifying their migration readiness via the FedPayments Manager – Funds application. 

Resources for a successful migration 

For updates, live drop-in sessions, FAQ, and preparation checklists, visit the Federal Reserve’s ISO 20022 Implementation Center. 

How Wipfli can help 

The transition to FedFunds Service ISO 20022 can feel overwhelming. Wipfli specialists are ready to help. Our team has extensive background and knowledge in financial system upgrades and can guide institutions through the migration with tailored solutions. These include strategic planning, training and operational support, testing and validation assistance, compliance and risk management, and contingency planning and troubleshooting. 

With Wipfli in your corner, your institution can transition to ISO 20022 smoothly and confidently, reducing risks and helping to ensure operational stability. Contact our risk advisory services team to discuss how we can help. 

Read on for more content on compliance risk and financial institutions: 

/by

2025 Housing Market Insights: What Financial Institutions Need to Know

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

The U.S. housing market is experiencing a significant shift that directly impacts mortgage lenders, banks, and financial institutions. Rising inventory levels, evolving buyer behavior, and increasing expired listings are reshaping how institutions approach mortgage origination, pricing strategy, and customer engagement.

At QRL Financial Services, we’re closely monitoring these trends to help our partners across the financial industry navigate the current landscape with clarity and confidence.

📊 Inventory Growth Signals a Market Shift

For the first time since late 2019, active listings have surpassed one million homes nationwide. After several years of historically low supply, the residential market is showing meaningful signs of rebalancing:

– Inventory is growing year-over-year across most regions.
– The South and West are now above pre-pandemic inventory levels, while the Midwest and Northeast remain below.

This influx of supply creates expanded opportunities for lenders but also introduces new challenges for pricing models, underwriting, and borrower expectations.

🏦 Impacts on Lending: Affordability Meets Supply

While elevated mortgage rates continue to weigh on demand, the increase in supply introduces a silver lining—a more balanced market with greater negotiating power for buyers.

However, affordability remains a persistent headwind:

– The long-standing housing supply deficit persists despite recent inventory growth.
– At the current rate of absorption, it would take over seven years to fully close the housing gap (Realtor.com estimate).

For financial institutions, this dynamic means borrowers remain price-sensitive, rate-conscious, and increasingly focused on flexible loan products that help overcome affordability barriers.

💰 Seller Psychology & Pricing Disconnects

A widening gap between seller expectations and buyer realities is impacting transaction velocity:

– 80% of sellers believe they’ll receive their asking price or more.
– Yet, 40% of homes sold for less than the asking price.
– Roughly one-third of sellers had to reduce their asking price.

This growing disconnect has operational implications for lenders and servicers, including longer origination cycles, increased appraisal challenges, and the need for refined borrower education.

🔍 The Expired Listings Surge: A Market Stress Indicator

One of the clearest signals of today’s transitional market is the surge in expired listings:

– Expired listings are up 17.6% year-over-year.
– Projections suggest this could approach 20% growth by year-end.
– Homes sitting longer and failing to sell are triggering higher cancellation rates.

For lenders, this dynamic signals potential volatility in pipeline management, with loans falling out mid-process or requiring extended rate lock management.

🔑 Key Takeaways for Financial Institutions

– Prepare for Extended Cycles: Rising days on market mean longer timelines from application to closing, requiring adjustments to rate lock policies and pipeline forecasting.
– Recalibrate Borrower Expectations: With sellers still pricing on outdated comps, borrowers need coaching on realistic purchase prices, concessions, and negotiation strategies.
– Focus on Solution-Oriented Lending: Creative financing solutions, adjustable-rate products, and down payment assistance programs may be more critical than ever in combating affordability concerns.
– Revisit Risk Models: The uptick in expired listings, combined with broader inventory shifts, calls for a reassessment of pricing risk, valuation models, and market exposure.

🤝 QRL Financial Services: Your Secondary Market Partner

At QRL Financial Services, we specialize in providing correspondent banks with the tools, insights, and liquidity solutions needed to thrive in complex mortgage markets. Our focus remains on helping partners adapt, scale, and serve their customers effectively—no matter the market cycle.

Let’s Connect. If your institution is looking to navigate the challenges and opportunities of today’s market, QRL Financial Services is ready to collaborate.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender. First Federal Bank NMLS: 408902, 4705 W US Highway 90, Lake City, FL 32055

/by
Wisconsin Bankers Association logo

questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

Get our Newsletter!
Subscribe