I'm reading a really excellent book about community banking and an *arresting* line from it was, approximately: "A typical community bank has $150M in assets and a 4% net interest margin for about $6M in revenue covering 40 FTEs. Community banking is thus a small business."
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Anyhow: https://www.amazon.com/Most-Never-Want-Have-Again/dp/1481867954 … Two thumbs up. Swashbuckling startup story with a heavy helping of career advice (of lets say limited utility to the modal person following me); quite a bit of behind-the-scenes color which was fascinating to me. The FDIC orientation a hoot.
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I had a mental model for the FDIC as "Hmm, competent regulator, probably tries to put the fear of god into new bankers" but they actually summoned all the directors and investors to a room and asked "Why do you think we're here?", got answers, then said "Oh no, none of that."
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"We are actually here because OUR MISSION IS TO PROTECT DEPOSITORS and you have a business plan for investors and directors BUT WE CARE ABOUT DEPOSITORS and when you are writing your operations manual about TAKING DEPOSITS and COLLECTING DEPOSITS and STORING DEPOSITS remember it"
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"Because IF YOU #(%)%() WITH THE DEPOSITS WE CAN AND WILL END YOU. This is your first and only warning." (Slightly paraphrased.)
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Concrete consequence of this: a small bank FTE pool is dominated by tellers, bankers (sales reps), and loan officers. None of those are typically lawyer-level competent at regulatory state machines. You have to manage them as if they were, plus assume some are adversaries.
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A SaaS shop with $6 million in revenue would probably have 10~20 employees and doesn't have to build all of their processes assuming that literally anyone could be attempting to steal all the money at any time. ("Literally anyone?" CEO, CFO, etc are particularly large risks!)
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