Pioneer Bank plans to open new branch in downtown Schenectady Nov 17, 2014, 2:19pm EST
Chelsea Diana Reporter- Albany Business Review
Pioneer Bank is awaiting federal approval to open a new "innovative" branch in downtown Schenectady that would include an interactive ATM. The Troy-based mutual thrift has leased space at 426 State St. in Schenectady from the Schenectady County Industrial Development Agency, in the same building as Aperitivo Bistro, an Angelo Mazzone-owned restaurant, and a few doors down from Proctors theatre. "We see downtown Schenectady as the place to be," said CEO and President Tom Amell. "It's revitalized and we just love what they've done with the downtown." Construction is set to start on the building as soon as possible, and Amell said they hope to open the branch by the second week of March, 2015. The Schenectady branch will be the third hybrid branch-retail-Post Office center for the bank, with other locations in Clifton Park and Albany. Customers will be able to address their banking needs as well as ship packages and buy a variety of merchandise proceeds to charity. Amell said the success of the bank's large branch in Rotterdam on Altamont Avenue also inspired them to open a second branch in Schenectady County. "We're anxious to be a partner with the city," Amell said. "They're doing a great job." The new branch also will launch an interactive ATM, which the bank is calling ITM, that will feature a live video feed of a Pioneer Bank employee for customers that need help. Once the ITM is perfected, Amell said the bank plans to roll it out to other locations. Many competing banks, including TrustCo Bank, KeyBank, and First Niagara Bank, have branches along the same stretch on State Street. Pioneer Bank's Schenectady branch will be the 18th branch for the bank. Pioneer Bank has about $660 million in deposits and holds 2.35 percent of market share in the Albany region.
George Amedore & Christian Klueg for NYS Senate 2016 Pete Vroman for State Assembly 2016[/size][/color]
"For this is what America is all about. It is the uncrossed desert and the unclimbed ridge. It is the star that is not reached and the harvest that is sleeping in the unplowed ground." Lyndon Baines Johnson
DV, care to tell us what is good about a rich bank on a property that is NOT on the tax rolls? Yep, RAH RAH CHEER CHEER for rich political cronies of the dems getting richer while people lose their homes.
Do you have the guts to explain why cheer for homeowners losing their homes while a bank gets richer in a property paid for by the very people who lose their homes.
Do you think the bank is going to give you a job?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Banks (as all businesses do), do a lot of research in an area before they decide to locate there.
There are already 3 banks in the same area that appear to be doing fine.
I'd have to believe that Pioneer is no different and sees a market to decide to set up business there.
It also seems to be nothing like the 'traditional banks'.
We certainly won't be venturing downtown to do banking. We NEVER go downtown.
But hey.....Pioneer must see a need.....yes?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Banks (as all businesses do), do a lot of research in an area before they decide to locate there.
There are already 3 banks in the same area that appear to be doing fine.
I'd have to believe that Pioneer is no different and sees a market to decide to set up business there.
It also seems to be nothing like the 'traditional banks'.
We certainly won't be venturing downtown to do banking. We NEVER go downtown.
But hey.....Pioneer must see a need.....yes?
More businesses opening downtown. More residential housing being built downtown. Both are good reasons to build a new bank downtown.
George Amedore & Christian Klueg for NYS Senate 2016 Pete Vroman for State Assembly 2016[/size][/color]
"For this is what America is all about. It is the uncrossed desert and the unclimbed ridge. It is the star that is not reached and the harvest that is sleeping in the unplowed ground." Lyndon Baines Johnson
Banks Can’t Close Branches Fast Enough February 5, 2014 | Subscribe Free
0 Comments U.S. banks are closing branches in record numbers as customers are increasing their use of mobile and online banking. Yet, in conversations with seven of the nation’s top ten banks, many more branches would be closed if there wasn’t concern for public or governmental backlash. By Jim Marous
Do banks have an obligation to keep branches open, or will the need to cut costs drive an accelerated wave of new closures?
According to SNL Financial, banks closed a net 1,487 branches last year. That’s the highest number of net closures since the research firm began tracking the statistic in 2002. The majority of these closures have been attributed to the increasing use of online and mobile banking as technology enables consumers to manage their accounts, make remote deposits and shop for services more efficiently from desktops or smartphones.
Bank Branch Closures 2010 - 2013
Despite these closures, the number of bank branches in the U.S. still hovers above 80,000 according to the FDIC, making the U.S. one of the highest branched countries per capita in the world. That is why, in an era of sluggish revenue growth and heavy compliance costs, most bankers are trying to close or reconfigure underperforming branches as quickly as possible.
State by state branch closings
But closing branches involves more than just locking the doors and informing customers of other banking and branching options. In conversations with banking executives from seven of the largest banks in the country, I was told that between 50 percent and 80 percent of all branches that should be closed based on financial considerations are not closed due to potential regulatory or public relations repercussions. With many analysts saying that 25-30% of all branches are unprofitable, this could represent a ‘backlog’ of well over 10,000 branches nationwide.
In my discussions with these banks, it was mentioned that many of the branches that are not carrying their weight from a revenue perspective are either in lower income markets or in small rural areas where access to an alternative nearby physical location may be limited. This creates a unique dichotomy between a prudent financial decision and the desire to maintain trust and goodwill lost during the financial crisis.
When I asked whether reconfiguring these underperforming branches was an option, many of the executives I contacted said that they were even concerned about negative reaction to replacing tellers with automated kiosks or moving to smaller physical footprint locations. Said one banker, “We’re caught between a rock and a hard place with many of the closings we would like to do. The decreasing number of transactions at many of these offices makes them highly unprofitable, but moving to an automated model brings its own issues.”
The perceived obligation to keep branches open, and the real estate related costs of closing branches, may explain the rather conservative rate of branch closures to date despite branch transaction volumes that continue to plummet and costs that continue to rise. The same challenge is being faced by banks worldwide, evidenced by a recent U.K. article in The Telegraph asking, ‘Do Banks Have a Duty to Keep Branches Open?‘ Interestingly, more than half the people who responded did not believe banks should be required to keep unprofitable branches open.
Screenshot 2014-02-05 15.21.59
Closing Branches in Lower Income Areas
The Community Reinvestment Act, signed into law in 1977, was an effort to combat discrimination and encourage banks to serve local communities. The CRA also required financial institutions to notify federal regulators of branch closings. But most industry followers say the CRA provides a great deal of leeway for banks wanting to close offices, and that the impact is usually only felt when a bank wants to make an acquisition of another institution. In addition, the law has not been updated to reflect the impact of online or mobile banking, making it even more difficult to enforce.
“There is ample evidence that banks have disproportionately closed branches in low to moderate income areas, despite the CRA”, stated Steven Reider from Bancography. “There are few cases where CRA impedes closures and in fact, the regulators have no authority to stop a closing, only the ability to downgrade a CRA rating in a subsequent year’s review.”
To this point, analysis from various sources shows that there are still disparities in how closures over the past several years have occurred, with a significantly higher number of closures in low and moderate income areas and a small growth in branch locations in more affluent neighborhoods. But this doesn’t mean that there are not still a significant number of additional branches that should be closed.
Simply walk into any of the mostly oversized inner city branches and you’ll realize that there is a tremendous overcapacity in most branches. The problem is…how to close these offices with the least amount of community impact? SourceLink | Top Opportunities for Bank Marketers in 2015 Closing Rural Branches
While a bank branch serves as the public face of banks and provides an important marketing function in high-traffic neighborhoods, bank branches also play an economic and emotional role in smaller markets, where low transaction volumes make the majority of traditional branches unprofitable. “Bank branches are a symbol of economic health and a vibrant community,” says Jennifer Tescher, head of the Center for Financial Services Innovation, a research group that focuses on people without a banking relationship.
According to Joe Sullivan, CEO of Market Insights, “Banks and credit unions need rooftops and businesses to make the economics of the ‘traditional” branch model work, and unfortunately, this makes some of the smaller towns unable to profitably support large (or many) bank branches. Therefore, you will continue to see a decrease in traditional branch formats in small towns, especially with populations under 10,000 people.”
Adding to the difficulty of closing a branch in a rural market is the fact that the next closest branch may be dozens miles away and the availability of high speed internet and even a strong mobile signal may negatively impact the conversion to online and mobile banking alternatives. Finally, selling an existing bank branch is also more difficult in a rural market, where the commercial real estate market may already be depressed.
Cost of Closing Branches
As mentioned, despite the estimate that as many as 25 to 30 percent of branches are unprofitable, many banks are holding on to branches because of expensive, long-term leases or because past renovations have not been fully depreciated. In addition, it is estimated that the cost of closing a branch is as much as $500,000.
“The biggest barrier to closure we see is not CRA or community pressure; it’s the unwillingness to take the fixed asset write down that the bank would incur when trying to dispose of the facility. Charge against current period earnings = unhappy shareholders.” stated Reider from Bancography.
Kevin Travis, managing director at Novantas in an interview with the American Banker, agreed saying, “Many banks are waiting for the interest rate curve to turn, thinking they will become more profitable and can take the charges when margins are rising. But the flip side is that interest rate relief from widening spreads will lessen the financial pressure to cut costs. And hope is not a strategy.”
Branch Configuration Will Continue to Evolve
While branches will not soon vanish as a transaction and business channel, they will definitely continue to evolve. “Branch closures might slow down or speed up, but as mobile technology continues to become more available, we expect the need to use branches to conduct routine transactions to decrease,” says Tahir Ali, research analyst for SNL Financial.
Ali believes the branch will continue to evolve into spaces used more as marketing centers or consultation spaces. “There will always be transactions people want to conduct face to face,” Ali said, either because of their complications or because they need an immediate result. He also noted that many people still feel more comfortable discussing loan options and filling out loan applications in person than they might at a kiosk or over the phone.
Rather than providing a full-service experience, branches of the future will probably be much more self-service, with automated devices provided as a compliment/supplement to customers’ current mobile and online banking experiences. Banks will offer self-service kiosks where customers can conduct basic transactions, learn about and apply for products, and even meet with specialists via video connections.
An example of this transformation is best illustrated by PNC, where branch closures and significant modifications of branches was discussed as part of the bank’s most recent analyst call. PNC Chief Executive William Demchak told investors that the bank will close branches and turn as many as two-thirds of his 2,700 company’s branches into smaller, more automated locations within the next five years. “We’ll drop the operating costs out of it, and it will deliver a service that tomorrow’s bank client expects,” Demchak said.
“Banks and credit unions need to implement creative strategies that enable their institution to remain economically viable”, said Serge Milman, principal consultant for SFO Consultants. “CRA requirements can be met through efforts other than physical branches…such as with ‘branches on wheels’ or with a ‘pop-up branch’ like has been done by PNC. Fundamentally, the vast majority of consumers do not need / want services delivered in and by a traditional branch. Maintaining such infrastructure is a dis-service to customers (as it raises overall costs for various services), and a breach of fiduciary duty to the Bank’s shareholders.” Register now! Early bird discount expires soon… Post Office Banking Alternative
Making news recently, the Post Office could serve as an alternative to traditional banks, especially in lower income and rural areas. While a bit of a stretch for many inside and outside the industry, it would not be the first time this has been done in the U.S. Beginning in 1911 and lasting several decades, as many as 4 million people had postal savings accounts with the USPS. In addition, the model would be similar to one used overseas still today.
One advantage would be that the overhead costs would be covered since the USPS already has 35,000 offices, branches, and other locations across the country, with almost 60 percent of post offices are in Zip Codes that have one or zero bank branches. In addition, the agency already handles monetary transactions.
Beyond serving the underbanked/unbanked/debanked, the agency could fill the gap when bank branches need to close either providing basic services themselves or potentially partnering with banks. Not intended to provide loans or business services, current proposals include the possibility of the USPS offering basic banking services such as bill paying, check cashing and making small loans.
There is no doubt that there will be a great deal more discussion around the pros and cons of this idea, but it could alleviate a great deal of the pressure banks are feeling around closing or shrinking unprofitable branches.
The Future of Branches
Rather than being the hub of all banking, branches are destined to become the alternate channel for customers to conduct their banking, integrating with both mobile and online banking experiences. Personalized service will be provided in a different manner, leveraging digital technology to drive a better shopping and buying experience.
Moving to this model will not be easy and will require customer engagement. Hurdles that now exist to closing branches will need to be addressed since the negative financial impact to not closing underperforming branches is significant. “It is broadly recognized now that it isn’t the 1990s anymore and that things need to change,” says Bob Meara, senior banking analyst at consulting firm Celent. “The competitive advantage of having branch density is a huge cost disadvantage.”
Dave Martin, Executive Vice President and Chief Development Officer with Financial Supermarkets, Inc. (FSI) says, “The truth of the matter is that the banking industry does not need the amount of space it currently has anymore. Downsizing traditional branches, trimming networks and testing newer, smaller “alternative” locations is going to happen. The banks who find the most efficient ways for their people to still have face to face contact with customers will be at an advantage.”
He continues, “I don’t think the argument is really ‘if’, but ‘when’. That said, this industry isn’t exactly known for speedy transformation. It’s probably easier to predict what things will look like in 10 years than in 2 years.”
I believe the rate of closures is due to accelerate in the near term. The foundation for these closures has begun, as many banks discussed both closings and branch reconfigurations as part of their recent earnings calls. The challenge, as with many changes in other industries, will be how we can ‘sell’ it to the public at large.
THE FUTURE IS COMING......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
More businesses opening downtown. More residential housing being built downtown. Both are good reasons to build a new bank downtown.
sounds great....but what about the rest of the city??? they are the ones footing the bill for this thing they call 'downtown'.
it wasn't downtown that kept the city of Schenectady vibrant decades ago....it was GENEROUS ELECTRIC.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
sounds great....but what about the rest of the city??? they are the ones footing the bill for this thing they call 'downtown'.
it wasn't downtown that kept the city of Schenectady vibrant decades ago....it was GENEROUS ELECTRIC.
Of course, DV will NEVER NEVER respond to you and state what happens to the rest of the city which we know for a FACT is fast becoming a ghost town full of over-assessed houses up for sale that no one is buying---not even DV--as well as tons of run down houses.
He will NEVER address the MASSIVELY FALLING tax base.
And "businesses opening downtown." DV really thinks the addition of tons of taxpayer funded gin mills is going to save the city? But WHERE IN the city can one buy a new car? And where are the details about occupancy rate of the existing taxpayer funded apartments? Where is the balance sheet? Supposedly upscale and more expensive apartments? Where are the good paying jobs that provide the incomes needed to rent in these higher priced apartments? And WHO wants to live in some downtown apartments anyway when you have little privacy, no yard to enjoy, etc? Does DV really think that people who work at the good paying jobs at Global Foundries, or the overpaid state jobs in Albany, or doctors etc are really going to rent an apartment in Schenectady? DV certainly has a wild imagination. And of course we will NEVER see DV setting foot IN the city to rent a tax exempt apartment or walk to a tax exempt bank.
What will happen to the banks downtown when those who bought houses in McC's HOMES program default on their mortgages, or when they try to refinance but cant because they are underwater on their mortgages, or they can't obtain financing for whatever needs because they have no equity in their homes, etc.
What will happen as more and more taxpaying homeowners leave the city because of the taxes going up up up to pay for he taxes of millionaires, and more and more "absentee" landlords (both good and bad ones) can't get tenants because the tenants can't afford the rents that the landlords need to make their mortgage, tax, and upkeep payments?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Pioneer Bank plans to open new branch in downtown Schenectady Nov 17, 2014, 2:19pm EST
"We see downtown Schenectady as the placeonly place to be," said CEO and President Tom Amell. "It's revitalized and we just love what they've done with the downtown." C.
Correct, because the rest of the city is a crime infested, drug infested cesspool that city hall could give two sh!ts about.
"Arguing with liberals is like playing chess with a pigeon; no matter how good I am at chess, the pigeon is just going to knock out the pieces, crap on the board, and strut around like it is victorious." - Author Unknown
Of course, DV will NEVER NEVER respond to you and state what happens to the rest of the city which we know for a FACT is fast becoming a ghost town full of over-assessed houses up for sale that no one is buying---not even DV--as well as tons of run down houses.
He will NEVER address the MASSIVELY FALLING tax base.
...
Two days. He still doesn't respond to bumble. It's just far to embarrassing to address the truth.
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
The banks open branches to get a share of the banking business the other branches are getting. There is no net increase.
Very true. Some people don't grasp such things (rah rah)
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Here's what you need to know before taking out a peer-to-peer loan By Mandi Woodruff August 29, 2014 2:47 PM Yahoo Finance Lending Club files to go public . View photo Lending Club is leading the P2P lending craze.
Peer-to-peer lending giant Lending Club is gearing up to have one of the biggest tech initial public offerings of all time.
But what’s all the fuss about, anyway? Here’s a quick rundown of how the P2P lending business works — and if this alternative mode of lending could be appropriate for average consumers.
Since its launch in 2007, Lending Club has served as an alternative to traditional credit lenders for consumers looking for small loans at decent interest rates. The company couldn’t have had better timing. In the wake of the 2008 financial crisis, banks and lenders grew so tightfisted that it became increasingly difficult for subprime borrowers to get access to loans. Peer-to-peer lenders like Lending Club (and its main competitor, Prosper) were more willing to take on these riskier borrowers.
The biggest difference between peer-to-peer lenders and traditional lenders is that the loans are backed by everyday investors. Think of them like Uber but for loans.
What do I need to do to qualify for a loan?
Both Prosper and Lending Club require borrowers to fill out an application for loans online. Unlike typical credit applications, however, they only count as “soft” inquiries on your credit report and won’t negatively impact your credit score. If approved, your interest rate will depend on your credit score, loan amount, loan term, and credit usage and history. The minimum credit score required to qualify for Lending Club is 660 and 640 for Prosper.
Because each state has its own regulations about securities and investing, borrowing and investing from P2P lenders isn’t allowed everywhere. Some states may allow P2P borrowing, while blocking P2P investing, and vice versa. For borrowers, Lending Club is allowed in all but five states (Iowa, Idaho, Maine, North Dakota, and Nebraska). Prosper is blocked in Iowa, Maine and North Dakota. LendingAcademy.com keeps an updated map of states that allow P2P transactions.
How much can I borrow?
Personal loans start as low as $1,000 and can’t exceed $35,000. For small businesses, loans start at $15,000 and are capped at $100,000. Prosper loans range from $2,000 - $35,000 for both personal and small business use. The vast majority (83%) of Lending Club borrowers use their loans to refinance existing loans or pay off their credit cards, and about 5% use loans for home improvement projects. Loans are issued with three or five-year terms, with monthly payments.
What’s so great about P2P loans anyway?
The biggest draw for P2P loans are their interest rates — as low as 7% for borrowers with stellar credit. The average Lending Club interest rate is around 14.7% (slightly higher than the national average for 13%). Considering that the average borrower on the site typically carries debt with a 20.7% interest rate, it can be a much cheaper option to consolidate that debt and go the P2P lending route. That being said, the more risky a borrower appears, the higher their rates will be — just like a traditional mortgage lender or credit card issuer. (Lending Club’s rates go as high as 24.63%, while Prosper’s interest rates are as high as 35.36%).
Here’s a sample of Lending Club’s interest rates. (“Loan Grade” refers to creditworthiness of the borrower, with A being the most creditworthy.
How long will it take to pay my loan off?
P2P loans are issued with three- or five-year terms, with monthly payments. The fact that they’re term-based is another reason to favor them over traditional bank loans.
“Some people like the idea of having a fixed term for the payment,” says Peter Renton, founder of LendAcademy.com, an educational site for novice P2P borrowers and investors. “It’s a kind of enforced discipline. They know they have three or five years on a loan and they will have paid off their debt.”
Are there any hidden fees?
Prosper and Lending Club both charge fees for new loans (1.11% to 5% of the total loan amount at Lending Club, 1% to 5% for Prosper), depending on the size of the loan. The origination fee is included in your APR and subtracted from your total loan balance before you receive it.
If you’re late on payments, however, fees start to pile up. Both sites charge $15 for payments that bounce back and either 5% or $15 (whichever is greater) for payments that are more than 15 days late. If you want to pay with checks, there’s another $15 fee for processing (clearly, online payments are the way to go)
Any tips for a beginner borrower?
You never want to take out a loan that is more than you actually need. Like any type of loan, whether it’s from a bank or a P2P lender, falling behind on payments means paying even more in the long term.
Renton always counsels borrowers to take out the shortest term loans. Shorter terms means lower interest payments.
“The five-year loan is always seductive because it has a lower monthly payment,” he says. “But your interest bill is going to be a lot more.”
Another pro tip: Renton says you might score a lower rate on your loan if you apply for an amount that’s slightly less than a round number. For example, take out a $4,995 loan rather than $5,000. (Because P2P lenders don’t publish the interest rates for loan amounts, we can’t verify this tip, but it may be worth a try.)
Do your homework:
P2P loans can be an inexpensive way to tackle many debts at once. But you should be aware of other options, too. Plenty of credit lenders have 0% balance transfer offers. You can also check to see what the rates are for debt consolidation loans at your bank or credit union.
For more information, there are plenty of free resources on the web that you can use before taking out a P2P loan. Lendingmemo.com offers a free ebook on P2P lending, which you can download here. LendAcademy.com is another great resource and offers daily newsletters with tips for P2P borrowers and investors, alike. Sign up here.
Have you ever used peer-to-peer lending sites like Lending Club or Prosper? We’d love to hear about your experience. E-mail us here: yfmoneymailbag@yahoo.com
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
More businesses opening downtown. More residential housing being built downtown. Both are good reasons to build a new bank downtown.
What businesses? Where downtown can you buy electronics, DVD's. CD's, crafts, hardware, clothing, house needs, etc?
Yeah, a bunch of gin mills are opening.
Care to tell us when you are going to move downtown?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
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