Easing reg burden among bankers’ hopes for the New Year

Editor's note: This column was included in the Jan. 2 version of The Pulse, a weekly BankBeat newsletter sent to subscribers. .The past year was a tough one for community bankers, with rising costs, squeezed margins and beastly regulatory burden. But change is coming. At least, that's the hope.In about two weeks, there will be a new administration and already there have been clues laid that tell us how policy could shift. Many expect a pro-business tax policy and grip-loosened approach to governance that will foster innovation and growth and increased profits. Regulations described by one banker as "out of control," and labeled "outrageous" by another, including 1071, 1033, and CRA, may look very different a year from now. It remains to be seen if individual regulators will undergo any attitude adjustments as the winds shift. The real question going into a new environment is: Will reduced reg burden foster innovation? If regulators calm down about bank-fintech partnerships, will community banks make great enough strides in deposit gathering and new account generation to get them past the reality that one out of three new bank accounts today opened online is fraudulent? That seems like a steep hill to climb.One person suggested to me recently that 2025 might be the year when the stars align for banks: "Deregulation combined with AI and reduced new account fraud could lead to some real successes."That sounds refreshingly optimistic.If you have a bit of time, consider reading what roughly two dozen individuals, most of them bankers, shared with us recently about their hopes (and ongoing concerns) as we enter a new year. There is strong consensus that positive changes are coming. That bodes well for the survival of the dual banking system, which is the envy of the world. Happy New Year, and may all your prospects be bright ones!.P.S. Do you have an Amazing Outside Director serving on your board? BankBeat magazine honors such directors annually in its March edition. If you have an outside director serving on the board of your bank or holding company who is making a big impact on your organization, please consider nominating them for this recognition. If selected, they will be featured in an article appearing in the March 2025 edition. We hope to honor 4 to 6 candidates. Access the nomination form by clicking here. The Amazing Outside Director program is sponsored by Winthrop & Weinstine. Nominations need to be submitted by Jan. 6. Questions? Email Tom@NFRcom.com