2019 Journal of Community Bank Case Studies

Utah Valley University

THIRD PLACE:

Conclusion In May of 2018, S.2155 was passed with the intention of offering regulatory relief to federally regulated financial institutions. This study has displayed the minimal effect that S. 2155 has had on People’s Intermountain Bank. With the exception of the exam cycle changing from 12 to 18 months, People’s Intermountain Bank realized no regulatory relief from S.2155. This lack of relief is primarily due to the bank being well capitalized and practicing prudent lending practices. People’s Intermountain Bank sees a longer exam cycle, removal of consumer protection as it relates to mortgages, and equalizing credit unions and community banks as practical, possible areas of opportunity for congress to alter in the future. These changes would further help the bank accomplish its core value of strengthening its communities.

resulting in lower earnings performance, or lose customers. People’s Intermountain Bank would benefit from credit unions and banks being regulated and taxed similarly. In similar fashion, unregulated fintech companies are competing with People’s Intermountain Bank in the banking space. “The bank is currently trying to stay competitive with fintech companies. There are accounts that are available for deposit and credit accounts that are available online. It’s very customer oriented. It is online and for us to be able to compete with that is going to be difficult. We have to have the right technology, it has to comply, it has to be safe, but it’s got to be quick and efficient as well” (Bule). “Simply put, banks have a lot of competitors. The way we choose to compete is by figuring out what we can beat them at and what we can be the best at. We need to invest our time in training the bankers, aligning with the right products, and insuring that we have a value proposition that is the best for our market. Whether it is better, faster, or cheaper, we have to provide value that we can measure. Just being a bank on a corner 40 years was good enough because location drove profitability. Today we have competitors like Amazon, Apple, and other fintech companies entering our space. Today you’ve got to be different” (Williams).

With the exception of the exam cycle changing from 12 to 18 months, People’s Intermountain Bank realized no regulatory relief from S.2155.

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