ISSUE 6 2024-2025 PRESIDENT’S MESSAGE 2025 NBA Membership Survey Highlights OFFICIAL PUBLICATION OF THE NEBRASKA BANKERS ASSOCIATION
233 S. 13th St., Ste. 700 Lincoln, NE 68508 Phone: (402) 474-1555 • Fax: (402) 474-2946 www.nebankers.org NBA EDITORIAL STAFF RICHARD BAIER President and CEO richard.baier@nebankers.org KARA HEIDEMAN Director of Communications and Marketing kara.heideman@nebankers.org NBA BOARD OF DIRECTORS MARK LINVILLE NBA Chair First State Bank, Randolph TRAVIS SEARS NBA Chair-Elect Union Bank & Trust Co., Lincoln BRAD KOEHN NBA Past Chair Midwest Bank, Lincoln KRISTY BARTAK Nebraska State Bank & Trust Co. Broken Bow NICK BAXTER FNBO Omaha KRYSTI CUNNINGHAM Security National Bank of Omaha Omaha CURTIS HEAPY Western Nebraska Bank Curtis ZAC HOLOCH Cornerstone Bank York JEFF KANGER First State Bank Nebraska Lincoln ZAC KARPF Platte Valley Bank Scottsbluff JOHN KOTOUC American National Bank Omaha KRISTEN MARSHALL-MASER Five Points Bank Grand Island JEREMY McHUGH Corn Growers State Bank Murdock AARON OTTEN Elkhorn Valley Bank & Trust Norfolk KEVIN POSTIER Henderson State Bank Henderson JAY PRESTIPINO First Interstate Bank Omaha LUKE RICKERTSEN Flatwater Bank Gothenburg BRIAN SCHWEIGER U.S. Bank, N.A. Lincoln RYNE SEAMAN Cattle Bank & Trust Seward RYAN STEFFENSMEIER First Community Bank Beemer KELLY TRAMBLY South Central State Bank Campbell NICK VRBA RVR Bank Fremont MICHAEL WHEELER Wells Fargo Bank, N.A. Omaha ANDREW WITT Dundee Bank Omaha 800.228.2581 MHM.INC Now more than ever people want self-service options. With our core integrated ITMs we can make this a reality both in the lobby and in the drive-up of your branch. SELF-SERVICE BANKING 4 NEBRASKA BANKER
our Cle mibanc.com MEMBER FDIC OUR OPERATIONS TEAM Diane Kempker Lyndsay York 30 years experience 14 years experience John Turner 37 years experience Our bank is proud to celebrate our 40th anniversary this year. The knowledge & experience of our operations management team & their staff is remarkable! Give us a call 800-347-4642
EDITORIAL: Nebraska Banker seeks to provide news and information relevant to Nebraska and other news and information of direct interest to members of the Nebraska Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the NBA. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the NBA. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to the magazine, which began bimonthly publication in May 2006, is included in membership fees to the NBA. ©2025 The Nebraska Bankers Association (NBA) | The newsLINK Group LLC. All rights reserved. Nebraska Banker is published six times per year by The newsLINK Group LLC for NBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NBA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Nebraska Banker is a collective work, and as such, some articles are submitted by authors who are independent of NBA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS 14 30 8 PRESIDENT’S MESSAGE 2025 NBA MEMBERSHIP SURVEY HIGHLIGHTS Richard J. Baier, President and CEO, NBA 11 WASHINGTON UPDATE JOIN THE FIGHT AGAINST FRAUD Rob Nichols, President and CEO, American Bankers Association 14 TECH TALK THE REAL IMPACT OF DOWNSIZING FINANCIAL REGULATORS Laura Zannucci, Audit Manager/Information Security Officer, SBS CyberSecurity 18 COUNSELOR’S CORNER FIVE STEPS TO COUNTER CURRENT FRAUD TRENDS Baird Holm LLP 22 8 REASONS WHY BANKS SHOULD GO BANANAS Neal Reynolds, President, BankMarketingCenter.com 26 STRENGTHENING FRANCHISE VALUE Why Community Banks Are Growing Their Use of Reciprocal Deposits Joseph Hooker, Chief Sales Officer, IntraFi 30 WHY YOU’RE PROBABLY NOT READY FOR THE NEXT WAVE OF SYNTHETIC AI FRAUD Steve Lenderman, CFE, Head of Fraud Prevention, isolved 34 2026 EDUCATION CALENDAR 6 NEBRASKA BANKER
Discover® Debit Gives You The Advantage. When it comes to your debit program, you should always have the upper hand. Discover® Debit puts you in control of the board with superior economics, marketing support, and personalized service. Checkmate. Debit that’s here for you.® Find out more at DiscoverDebit.com/Win Stay One Move Ahead of the Competition
PRESIDENT’S MESSAGE 2025 NBA Membership Survey Highlights Richard J. Baier, President and CEO NBA 8 NEBRASKA BANKER
Special thanks to the NBA member banks who participated in the recent NBA Membership Survey! The goal of this biannual effort is to gather in-depth industry information that can be used to help guide the NBA’s policy, lobbying, education, marketing and product strategies. The results of the survey were rolled out as part of the NBA’s Fall Tour, which included stops in Ashland, Norfolk, Grand Island and Gothenburg in late September. In particular, the survey results offer valuable data points about the impact Nebraska banks have on their communities. This information is actively shared with elected officials, banking regulators, media representatives and members of the public. Clearly, no industry sector in our great state is more committed to the success of its customers and communities than Nebraska banks! This commitment is reflected in the results of the 2025 NBA Membership Survey. 1. Survey participants reported $214 million in sponsorship and corporate donations to community and regional projects. Similarly, Nebraska banks reported another $4.4 million in community grants/matching grants. During the NBA Fall Tour, for example, we held our meeting at the Gothenburg YMCA, which was supported heavily by local banks. Likewise, we discussed the importance of the NBA’s HALT human trafficking efforts, which were funded almost entirely by Nebraska’s banking sector. 2. Banks that took part in the NBA Membership Survey reported an overwhelming impact on statewide community development projects: $1.46 billion in community development investments and another $941 million in community development lending. That represents almost $2.5 billion in support of community development efforts across our state during the past year. Clearly, no industry sector in our great state is more committed to the success of its customers and communities than Nebraska banks! 9 NEBRASKA BANKER
3. Collectively, Nebraska banks supported 7,435 Nebraska-based non-profit and community organizations. 4. Participating banks noted that more than 7,500 bank staff members actively volunteered with more than 5,100 entities in Nebraska. These volunteers dedicated an impressive 127,480 hours during the most recent reporting cycle. 5. Nebraska banks utilized a variety of services, information technology solutions and marketing campaigns to limit the impact of fraud on bank customers. Specifically, more than 85% of participating banks actively used their social media channels to educate and equip their customers with anti-fraud and anti-scam strategies. 6. Finally, more than 80% of participating Nebraska banks reported offering low/minimal fee checking and savings accounts designed to support the unbanked and underbanked. This is an issue that routinely takes center stage with both federal and state officials. Looking ahead to 2026, the NBA plans to increase outreach aimed at exposing more students to careers in banking, while also launching programs to further engage young bankers. The NBA Board of Directors has also approved a sizable commitment of time and resources to help member banks collectively educate about and prevent consumer fraud, which is rampant in our state and around the country. As always, thank you for your commitment to the NBA and for collectively tackling the many challenges facing our industry! 10 NEBRASKA BANKER
WASHINGTON UPDATE Join the Fight Against Fraud Rob Nichols, President and CEO American Bankers Association Are you an early bird or a night owl? Do you prefer the pool or the beach? Coffee or tea? As ABA’s award-winning consumer education campaign #BanksNeverAskThat points out, banks would never ask a customer these questions. Nor would banks ever ask for a PIN, account number or other personal identifying information in an unsolicited call or message. What banks are asking for, however, is for the government to take a more comprehensive approach to fighting fraud and scams. With fraud losses among Americans now estimated to exceed $12 billion annually, and with scams becoming more sophisticated every day due to the evolution of AI and other technologies, it will take a coordinated effort to combat this dangerous threat. Over a year ago, I called on Congress and the administration to establish an Office of Scam and Fraud Prevention — within the executive office of the president — to coordinate interagency efforts, streamline consumer reporting processes and develop a national scam and fraud prevention strategy encompassing both the public and private sectors. But we also need other industries — especially the telecom sector — to step 11 NEBRASKA BANKER
up and do their part. Scammers use call spoofing, deceptive text messages and fake social media accounts to conduct a staggering number of fraudulent exchanges, and regulations around telecom providers are lacking. ABA has advocated for stronger laws to prevent illegal spoofing, enhanced standards for voice service providers to help consumers identify potentially fraudulent calls, and the establishment of a customer-reported database of scam text messages, which would enable businesses to monitor fraudulent texts being sent on their behalf. As we continue to advocate for more comprehensive rules for telecoms and other entities, banks continue to do their part to protect their customers from the financial and psychological harm caused by fraud. ABA has played a leadership role in recent years to arm bankers with the tools and resources they need to help protect their customers. We’ve established the ABA Fraud Contact Directory, which enables banks to more quickly resolve fraudulent check claims for their customers and identify contacts at other banks to help stop fraudulent transfers of funds. Earlier this year, we also rolled out exclusive ABA member access to check payee verification through the Treasury Check Verification System. This tool has already been used to validate over half a billion dollars’ worth of checks. And this past October, ABA was proud to bring back our award-winning consumer education campaigns — #BanksNeverAskThat and #PracticeSafeChecks — both of which aim to increase consumer awareness about common fraud and scam tactics. These campaigns were updated with new content that banks can access and share for free. The fraud threat is ever evolving, but consumers can count on America’s banks to have their back. I hope you’ll join the thousands of banks across America who have already signed up to participate in this campaign. Your engagement will help us spread this valuable knowledge far and wide, protecting the livelihoods of millions of Americans from fraudsters. The fraud threat is ever evolving, but consumers can count on America’s banks to have their back. Email Rob at nichols@aba.com. 402-817-1000 Lincoln | Bruning | endacotttimmer.com Here to help you navigate the legal ins and outs of wealth transfer taxes. The legal professionals at Endacott Timmer. From left: Patrick D. Timmer, Kent Endacott, and Elizabeth Workentine, Attorneys at Law 12 NEBRASKA BANKER
RxHelp@myphahealth.com (844)742-9675 106 W 3 Street, McCook, NE 69001 rd Take Charge of Your Health! Prescription Education You have the power to be an informed consumer of healthcare. Prioritize Your Health, Starting Today Call PHA Health at (844)742-9675 Participate in our annual Wellness Partners Preventive Care Clinic Talk To Your Doctor Review your medications with your primary care physician at least once a year. If you see multiple doctors for conditions, ensure each physician knows your current medication to avoid potential side effects. Know Your Medications Ensure you understand the purpose, prescribed dosage, storage instructions, expiration date, and side effects of each medication. Don’t skip a dose or alter the prescribed dosage of your medication. Ask About Alternatives Ask if your medication has a generic or another affordable alternative. Call our Rx Advocates to review your medication for opportunities to eliminate or reduce your copay and out-of-pocket cost for your high-cost prescriptions. Live A Healthy Lifestyle Medication cannot replace the importance of a healthy diet and regular exercise. Preventive care gives you an opportunity to recognize and avoid potential future diseases before they even develop. Receive a comprehensive booklet that includes 40+ lab test results Identifying illnesses prior to the onset of symptoms is a key component in lowering your healthcare costs and maintaining quality of life. Visit with our Specialists to create a plan for your success Take your PCC results to your next PCP appointment Call PHA Health to identify which of your prescriptions could be eligible for savings.
TECH TALK The Real Impact of Downsizing Financial Regulators Laura Zannucci, Audit Manager/Information Security Officer SBS CyberSecurity Financial institution regulators — including the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve — are facing significant downsizing. This trend raises critical questions about the safety and soundness of financial oversight and the decisions board members must make in response. Let’s explore the implications of a reduced regulatory workforce, the risks tied to longer intervals between examinations and the potential shifts in spending priorities. The Shrinking Regulatory Workforce: A Cause for Concern? The FDIC, NCUA, OCC and Federal Reserve have been pivotal in ensuring the stability and integrity of the banking and credit union sectors. However, recent directives from the current administration have led to substantial staff reductions across these agencies. The FDIC, for instance, has seen a workforce reduction of about 9% since January 2025, driven by deferred resignation offers and layoffs of probationary employees. According to Banking Dive, the FDIC aims to reduce its workforce by 1,250 — nearly 20%. Notably, the Voluntary Early Retirement Authority (VERA) and the Voluntary Separation Incentive Program (VSIP) are not being offered to “mission critical” employees, such as those in risk management and information security. Similarly, the NCUA has pulled back job offers and discussed early retirement programs in closed board meetings. Regulatory Report states the NCUA is considering a 16% staff reduction, or approximately 200 positions, which would likely impact its ability to perform supervisory functions. The OCC has laid off more than 75 probationary employees and shed approximately 140 staff through buyouts and deferred resignations. These reductions align with broader federal efforts to streamline operations and reduce costs. The Federal Reserve is also affected, with staffing cuts across financial regulatory agencies contributing to a larger campaign to trim $1 trillion in federal spending. While the intention behind these measures is efficiency, the resulting gaps in financial oversight could have serious consequences. 14 NEBRASKA BANKER
Unintended Unsafe Conditions One of the most pressing concerns is that fewer regulatory staff could lead to longer gaps between examinations — critical moments for identifying risks, ensuring regulatory compliance and maintaining financial stability. Consequences of reduced oversight include: 1. Delayed Detection of Issues: Problems may go undetected longer, making them harder and more expensive to fix. 2. Increased Risk Exposure: Institutions may take greater risks when they believe scrutiny is less frequent. 3. Erosion of Regulatory Compliance: Less frequent exams can lead to diminished focus on compliance, as short-term priorities crowd out long-term risk mitigation. Impact on Information Technology Spending The downsizing of regulatory staff doesn’t just affect compliance — it may influence how board members allocate resources, particularly in information technology (IT) and information security (IS). Several factors contribute to this potential shift in spending priorities: 1. Perceived Reduced Need for Compliance: Fewer exams might lead boards to deprioritize technologies that support compliance. 2. Short-Sighted Cost-Cutting: Institutions may delay or reduce IT and IS investments to save money — a move that can weaken their cybersecurity posture. 3. Shift in Strategic Focus: Funds may be reallocated to other initiatives, potentially neglecting essential tech and security infrastructure. Essential Oversight: Why Audits Matter More Than Ever With reduced regulatory presence, external IT and IS audits become essential tools for financial institutions committed to maintaining high standards of security and compliance. 15 NEBRASKA BANKER
Benefits of regular external audits include: 1. Independent Verification: Third-party reviews help identify vulnerabilities and gaps that internal teams may miss. 2. Regulatory Compliance: Audits help institutions stay aligned with regulations — even when oversight is less frequent. 3. Proactive Risk Management: External audits uncover and address issues early, allowing institutions to mitigate risks before they escalate. 4. Stakeholder Confidence: Independent assessments reassure customers, investors and regulators alike. What Sets Effective Risk Management Apart Cyber threats aren’t slowing down, especially as AI introduces new risks. Smart investments in technology and sound risk management practices are essential. That includes regular cyber risk assessments to guide informed, prioritized decisions about which risks to mitigate next. These assessments keep financial institutions out of breach headlines — and out of regulators’ crosshairs — while ensuring they can continue serving customers without disruption. Effective risk management isn’t just about checking boxes — it’s about protecting the institution and the people it serves. That protection becomes even more crucial as traditional oversight scales back. Navigating Risk in a Time of Reduced Oversight The downsizing of key financial regulators presents serious challenges. However, institutions aren’t powerless. External IT and IS audits offer a meaningful way to uphold oversight standards, even as federal agencies reduce staff. By providing independent verification, ensuring regulatory compliance, managing risks and enhancing stakeholder confidence, external audits play a crucial role in maintaining the safety and soundness of the sector. As financial institutions navigate these changes, it’s essential to strike the right balance between cost-saving initiatives and continued investment in oversight and technology. Sustaining trust, stability and operational resilience requires a proactive, risk-informed approach, even in the face of reduced regulatory scrutiny. This article was originally published on sbscyber.com. SBS helps business leaders identify and understand cybersecurity risks to make more informed and proactive business decisions. For more information, contact Ryan Kast at (605) 270-9381 or ryan.kast@sbscyber.com. Learn more at sbscyber.com. Sustaining trust, stability and operational resilience requires a proactive, risk-informed approach, even in the face of reduced regulatory scrutiny. 16 NEBRASKA BANKER
| Bank Stock Loans | Loan Participations | ATM/Debit | International Services | | Cash Management | Securities Safekeeping | Merchant Services | 800-873-4722 | NE: 888-467-5544 | www.bbwest.com Where community banks bank Est. 1980 – 45 years of service to community banks “As a service provider exclusively focused on community banks, Bankers’ Bank of the West is here to help strengthen our clients and the communities they serve.” Across the western states and Great Plains, we’re the place where community banks bank. That’s because we provide the services, technology, and expertise to help you extend your resources, deliver for your customers, and stand out in your market. 5 reasons to partner with us BBW - President and CEO - Bill Mitchell 1. You can unlock efficiencies and cost savings. We can provide sophisticated solutions and economies of scale because we’re powered by hundreds of community banks across our region. 5. Our priorities are aligned with yours. 2. You can expand your capabilities. 4. We’ll never compete for your customers. 3. You can count on prompt, reliable service. • Independent loan review • Loan and credit administration consultation • Strategic planning facilitation • Management, staffing, & succession planning • Acquisition & expansion • BSA/AML compliance • Regulatory risk consultation President, Jim Swanson President, Anne Benigsen • Consulting • Phishing Tests • Vulnerability Management • Security Monitoring Cyber/information security, strategic planning, independent loan review, AND MORE. Consulting Services $ 8.45B assets under management $ 1.9B daily transaction value processed/settled Serving more than 60% of community banks across 7 states
Five Steps to Counter Current Fraud Trends Baird Holm LLP COUNSELOR’S CORNER Fraud continues to cause problems for banks and their customers. Some of the most troublesome scams have been causing issues for years, while others are new or have a new twist. The following discussion reviews some of the current fraud trends and offers concrete steps financial institutions can take to protect themselves and their customers. 1. Require Multi-Factor Authentication Most security relies on sensitive data being secured with a username (often an email address) and a password. When ransomware groups exfiltrate usernames, passwords and other data and post it on the dark web, this information can be harvested and used by hacking groups to target financial accounts with credential stuffing attacks. With the sheer amount of information on the dark web, usernames and passwords aren’t hard to find. Attackers may obtain further information via social media to provide help desks or answer password reset questions, including details such as someone’s first school, first pet or the last four digits of their Social Security number. Multi-factor authentication (MFA) provides an extra layer of protection for sensitive data beyond login credentials and security questions. The National Institute of Science and Technology (NIST) defines MFA as: An authentication system that requires more than one distinct authentication factor for successful authentication. Multi-factor authentication can be performed using a multi-factor authenticator or a combination of authenticators that provide different factors. The three authentication factors are: something you know, something you have, and something you are.1 It is worth noting that not all forms of MFA offer the same level of security. MFA delivered via SMS text message or email is convenient, but less secure than 18 NEBRASKA BANKER
using authenticator apps like Microsoft Authenticator, Google Authenticator, Duo or similar applications. Texts and emails can be intercepted. Strong, out-of-band MFA solutions are recommended to enhance the security of financial accounts. The volume of information available to threat actors is significant. One effective security measure for financial institutions is mandating MFA on all customer accounts. However, some financial institutions offering online services still do not require MFA. There are regulations designed to enforce MFA, such as the New York State Department of Financial Services’ cybersecurity regulation (23 NYCRR 500); however, adoption remains variable, particularly among institutions serving smaller or older client bases. Concerns persist about whether requiring MFA will encourage customers to migrate to other banks or financial organizations. Still, the resources spent preventing fraud or misdirected funds may exceed the costs associated with lost opportunities. 2. Educate Customers on Social Engineering Scams Social engineering has existed for a long time; as long as there have been secrets, people have attempted to use social tactics to obtain them. A well-known hacker once stated that it is often simpler to manipulate individuals than to circumvent technological safeguards, suggesting that advanced technology can be compromised through effective social engineering techniques. Hackers rely on users not being aware of the latest scams, so it’s essential to repeat warnings loudly and often. Practitioners of social engineering have developed various methods and schemes. One common scam involves fraudulent phone calls appearing to be from a bank, using spoofed numbers to imitate legitimate bank contacts. The caller may be familiar with standard login procedures and request sensitive information such as usernames, passwords and multi-factor authentication codes. These calls often begin with alarming claims (e.g., an account balance being transferred out), which are meant to concern the recipient enough that they will readily share additional details needed for account access. Warning your customers through notices on login screens, paper statements, SMS messages or emails can be an easy way to offer timely reminders about sharing personal information. A simple warning, such as “never share this code with others,” may go a long way. 3. Monitor Dormant Accounts Money mules and fraudsters often open accounts with minimal initial deposits, then leave them inactive while attempting to compromise other accounts or engage in phishing and social engineering schemes. Dormant accounts can be readily identified and monitored for signs of fraudulent activity. Restrictions can be implemented to prevent these accounts from initiating or receiving wire transfers or ACH transactions or from utilizing remote deposit services. A major national bank has adopted a policy to automatically freeze dormant or infrequently used accounts that receive significant transfers or deposits. The assets in such accounts remain frozen until internal investigations confirm that the funds are not associated with fraudulent activity or scams. 4. Look Out for Your Customers Investment scams can cost both clients and banks a significant amount of time and money. Multiple lawsuits have been filed against financial institutions after a customer transferred funds for an investment that later MORE FACE TIME. LESS WAIT TIME. Visit NebraskaBlue.com/Telehealth to learn more. Health benefits that give you access to virtual visits with doctors and specialists, even if you’re out of state. So you can get the care you need — wherever you are, whenever you need it. An independent licensee of the Blue Cross and Blue Shield Association. 19 NEBRASKA BANKER
proved to be fraudulent. Plaintiffs often claim that banks are in the best position to identify potential scams and should warn their customers accordingly. Financial institutions are required to address and defend against these lawsuits when they arise. Asking appropriate questions, particularly when assisting elderly customers, may help prevent investment scams and benefit both the bank and its clients. Smaller banks are uniquely positioned to identify romance scams targeting older customers, whether by noticing atypical transactions or communicating with the customer’s family. 5. Require Electronic Statement Delivery Mail theft has been a longstanding issue dating back to the days of the Pony Express. During the late 1800s, intercepting stagecoaches carrying mail was a common crime. Notably, Charles “Black Bart” Boles, also known as the “Gentleman Bandit,” robbed at least 28 Wells Fargo stagecoaches in California and Oregon between 1875 and 1883. Mail was seen as an attractive target due to limited law enforcement, ease of access and the potential to find checks, bearer bonds, cash, jewelry and other assets. This risk persists today for individuals who send or receive checks through the United States Postal Service. Bank statements can disclose sensitive details, including line-of-credit balances, account numbers and bank routing numbers. Such information can facilitate the creation of fraudulent checks and lead to unauthorized withdrawals. One prevalent contemporary scheme involves stealing account statements from mailboxes and producing counterfeit checks, which are then deposited remotely, often in locations distant from the original account holder. The greater the distance between the account holder and the depositor, the more challenging it becomes for local law enforcement to pursue an investigation. To mitigate these risks, organizations should consider requiring customers to enroll in electronic statement delivery, thereby more tightly controlling the distribution and receipt of sensitive documents. Additionally, limiting the amount of information included on statements can reduce the value of any data obtained by unauthorized parties. Conclusion Protecting financial accounts from scams and fraud requires vigilance from both banks and their customers. By implementing proactive policies and encouraging secure practices, banks can help reduce the risks associated with dormant accounts and intercepted statements. Customers should also stay informed and utilize electronic banking options whenever possible to safeguard their information. Ultimately, a partnership between financial institutions and their clients is essential in the ongoing effort to combat financial crime. 1. NIST SP 800-63-3, Appendix A – Definitions and Abbreviations. Definition of “Multi-factor Authentication.” The NIST Digital Identity Guidelines also describe different types of multi-factor authentication solutions and their relative levels of security. 20 NEBRASKA BANKER
SUPPORTING INDEPENDENT ADVISORS WITH TURNKEY SOLUTIONS FOR FINANCIAL INSTITUTIONS 800-262-9535 | 402-483-2555 9060 Andermatt Drive, Suite 101, Lincoln, NE 68526 jfcadvisor.com Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. The bank and JFC are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using JFC and may also be employees of the bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank or JFC. Securities and insurance offered through LPL or its affiliates are: Not Insured by FDIC or Any Other Government Agency I Not Bank Guaranteed | Not Bank Deposits or Obligations I May Lose Value JFC ADVISOR NETWORK Where do you want to go? We’ll get there together. Incorporate A Successful Investment Program In Your Bank JFCAdvisorNetwork JFC Advisor Network Visit Our Site A Successful Investment Program Can: Provide an opportunity to acquire new customers Offer customers a platform where all their financial needs are addressed Build high-end referrals to your bank Present customers with robust wealth management solutions
No, I’m not referring to the bananas you’ll find in the grocery store, but the kind you’ll see on a baseball diamond! Have you tried to catch a Savannah Bananas™ ballgame recently? I have, and that experience is what prompted me — in part, anyway — to write about them. Let’s face it, Jesse Cole, owner of the Savannah Bananas, hasn’t just built a baseball team. He has created a cultural phenomenon. From what I’ve seen and read, his approach in doing so was driven by a singular thought that reimagined everything about the traditional baseball experience. After all, when we think of baseball and baseball teams, we rarely think of masterful marketing or any kind of breakthrough experience. But Cole’s Savannah Bananas have flipped that script using bold and creative, totally non-risk-averse thinking; a fan-first philosophy; and a community focus that any business can learn from, including community banks. “Imagine what the best possible fan experience is and do that. Don’t settle for the way things have been done before.”1 — Jesse Cole, Owner, Savannah Bananas 8 Reasons Why Banks Should Go Bananas Neal Reynolds, President BankMarketingCenter.com 22 NEBRASKA BANKER
1. Put Customers (and Employees) First The Bananas’ winning formula starts with prioritizing people. They tossed out ticket fees, bundled food and drink into one flat ticket price, and rejected sponsorships to keep the experience pure and affordable. Cole asked himself: “What’s wrong with this thing? How can it be improved?” His answer? “We are not trying to sell anything … Our goal is to entertain and create attention. We believe attention beats marketing 1,000% of the time.”1 Bank Takeaway: Community banks can take a page from this playbook by simplifying service and fees, and focusing on creating enjoyable, memorable interactions. Whether it’s offering bundled checking services or simpler, 23 NEBRASKA BANKER
transparent, less costly fee structures, reducing friction wins trust and loyalty. 2. Build a Culture of Engagement and Emotion From choreographed dances and “Banana Nanas” on-field entertainment to personalized thank-you videos when customers buy tickets, the Bananas create emotional connections at every fan touchpoint. Bank Takeaway: Community banks can and should — if not already — cultivate genuine engagement by delighting customers in unexpected ways. After all, a customer is a kind of “fan.” Once again, taking a page from Cole’s playbook, this could take the form of a personalized video when someone opens a new account or hosts financial education events that feature local experts and snacks. Doing so goes a long way in building brand loyalty. 3. Share Stories and People Behind the Brand The Bananas introduced viewers to their staff through their popular, 30-episode podcast series “Bananas Unpeeled,” making every team member part of the brand story, and covering topics such as “Every team needs characters” and “What’s wrong with baseball?” Suddenly, fans didn’t just come for baseball; they knew the backstory, got to know the players and came to cheer for personalities they knew and loved. Bank Takeaway: Community banks can further personalize services by showcasing the real people that customers encounter when they visit a branch. Whether through staff spotlights or employee profiles on social media, bringing humanity to their products and services builds genuine connections and trust. 4. Experiment Boldly and Learn Fast The Bananas refuse to stick with “what’s always worked.” They try something new every game, such as new skits, promotions and fan interactions; anything to stay fresh and fun. And, as their success has proven, the experimentation has been well worth the risk. Bank Takeaway: Banks can borrow this mindset by piloting small-scale initiatives — like fintech partnership kiosks, financial podcasts or under-the-radar community events — and scale what works. An iterative approach encourages innovation, enhances customer experience and allows flexibility. 5. Create Shareable Moments With over 8.8 million TikTok followers and ingenious short-form videos featuring dancing players, unexpected moments and heartfelt surprises, the Bananas focused on shareable content rather than direct selling. These viral hits boost awareness, trust and brand equity in ways traditional ads never can. Bank Takeaway: Banks can embrace shareable storytelling, perhaps with a video series introducing long-time customers or funny, friendly deep dives into financial advice. The goal? Foster the goodwill and social engagement that attract and retain new customers. 6. Create Seamless, Frictionless Experiences The Bananas eliminate hidden fees, simplify pricing and acknowledge every fan from ticket-buying to post-game 24 NEBRASKA BANKER
402.330.6300 www.walentineotole.com 11240 Davenport St. • Omaha, NE 68154-0125 WALENTINE O’TOOLE, LLP When time is of the essence, experience counts. Walentine O’Toole blends confidence, experience and knowledge with the personal attention you can expect from a regional law firm. Nebraska, Iowa and South Dakota Celebrating 40 years serving our valued clients. celebrations. They cover taxes, convenience fees and parking, all of which are part of a seamless, friction-free experience Bank Takeaway: Community banks can follow suit by auditing their customer journey and removing any pain points they encounter along the path by simplifying account opening, refining their online and mobile banking processes, and eliminating any stumbling blocks or barriers. From intuitive online banking to clear fee disclosures, minimizing friction keeps customers happy and loyal. 7. Invest in Employee Happiness to Serve Better The Bananas invest in their staff, sending them to Ireland, to concerts, and giving them VIP perks. They’re highly motivated to do their jobs with passion. Bank Takeaway: Community banks should view employees as internal customers. As Richard Branson, British entrepreneur and founder of the Virgin Group, once said, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” Offer professional development, healthy work environments, flexible policies and opportunities for staff to thrive. Happy employees equal better service and higher customer satisfaction. 8. Lead with a Vision and Authentic Culture Savannah Bananas isn’t about wins and losses. It’s about joy, belonging and entertainment pursued joyfully and unapologetically. They’ve built a fan-first culture that transcends baseball and now draws an audience that can fill Clemson’s Memorial Stadium, which has a capacity of 81,000. Bank Takeaway: Banks should articulate a people-first mission, whether it’s empowering families, boosting local businesses, participating in local events or improving financial wellness. A genuine mission — one built on a customer-first culture — attracts loyal customers and guides every service decision. A Home Run for Banks The Savannah Bananas may play baseball, but their real game is people. They’ve built a brand rooted in fun, empathy and a customer-oriented experience. That formula can work off the field and in the bank branch. For community banks, this means shifting your mindset and using marketing to create more meaningful moments. Swiftly address customer pain points, personalize relationships, foster staff pride and dare to step outside the (batter’s) box with innovative thinking. By “going Bananas” — with entertainment and empathy — community banks can stand out, build deeper connections, and grow their assets and a fan-worthy brand. We’re Bank Marketing Center, the leading, subscription-based provider of automated marketing services to community banks. Our goal is to help bank marketers with topical, compelling communication with customers that builds trust, relationships and revenue. And we do this through automating critical bank marketing functions, such as content creation, social media management and digital asset management, as well as regulatory and brand compliance. Do you want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at (678) 528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts. 1. ThrivePoint. The Power of Questions: How the Savannah Bananas Revolutionized the Fan Experience. August 20, 2024. Savannah Bananas is a registered trademark of Fans First Entertainment. 25 NEBRASKA BANKER
Strengthening Franchise Value Why Community Banks Are Growing Their Use of Reciprocal Deposits Joseph Hooker, Chief Sales Officer IntraFi Deposit competition remains fierce. According to IntraFi’s latest survey of bank executives, 93% say they expect deposit competition to remain at current levels or increase over the next year.1 To stay competitive in the current environment, community banks need every tool in their arsenal to attract and retain large-dollar depositors like businesses, nonprofits, government entities and high-net-worth individuals. 26 NEBRASKA BANKER
A reciprocal deposit network, which enables banks to attract and retain loyal, franchise-building customers by offering access to multi-million-dollar aggregate FDIC insurance across a bank network, is one such tool. Per recent research published by the Federal Reserve Bank of Dallas, reciprocal deposit networks get an outsized share of deposits from small and mid-sized banks. “Reciprocal deposits represented 6.47% of total deposits for banks with less than $10 billion in assets in the first quarter, up from 6% at the end of the first quarter of 2024. Among institutions with assets of $10 billion to $100 billion, such deposits accounted for 6.2% of total deposits as of March 31, 2025, down only slightly from year-end 2024 but up from 6.1% at the end of first quarter 2024.”2 Why Are Community Bankers Increasing Their Use of Reciprocal Deposits? Use of reciprocal deposits saw a significant uptick after 1) the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act, which recognized most reciprocal deposits as nonbrokered deposits, and 2) bank failures in the spring of 2023. Since then, small and mid-sized banks have maintained their heightened usage patterns. Per the Economic Growth, Regulatory Relief and Consumer Protection Act, reciprocal deposits held by an FDIC-insured depository institution are reportable as nonbrokered if the bank is well capitalized and has received an “outstanding” or “good” on its most recent examination; and the total amount of reciprocal deposits held does not exceed the lesser of $5 billion or 20% of the bank’s total liabilities. Reciprocal Deposit Networks Get Outsized Share2 of Deposits from Small, Mid-Sized Banks 27 NEBRASKA BANKER
With this new (in 2018) characterization of reciprocal deposits — and because reciprocal deposits tend to be lower-cost deposits that come in large increments from local customers — more banks embraced reciprocal deposits as an attractive option for growing franchise value. Then, the high-profile bank failures in spring 2023 drew attention to the risks for bank customers who have cash balances greater than the FDIC-insured maximum of $250,000, thereby increasing demand for large deposit safety. A survey of bank executives at the time revealed that 68% of respondents experienced an increase in inquiries about the safety of their deposits.3 Banks that were already members of a deposit network, such as the IntraFi network, had a solution at the ready, and other banks quickly sought reciprocal deposit network membership so they could offer their customers the peace of mind of knowing that their large cash balances and deposits had access to protection. The awareness that uninsured deposits pose a risk to bank customers, particularly those who need daily access to operational cash, increased after the 2023 banking crisis and has remained sporadically in the news, with various news outlets reporting on how customers can protect their cash balances over $250,000. Reciprocal deposit networks are usually featured in these articles as they offer the convenience of managing one bank relationship to access insurance across many banks. As a result, more customers know to ask for access, and more banks proactively offer the services to strengthen relationships with high-value customers. 28 NEBRASKA BANKER
Good for Banks and Communities As more community banks utilize reciprocal deposits, they realize how nicely reciprocal deposits dovetail with their community missions. With reciprocal deposits, the full amount of funds placed can stay local to support community lending. This has special appeal for community banks that, by design, exist to help their communities grow and thrive by lending to local customers. Community banks play a vital role in local economic stability and growth. By using reciprocal deposits, banks can expand their lending capacity for their local customers, creating a virtuous cycle of mutual success. Reciprocal Deposits for Today’s Market Environment In an environment where deposit competition is intensifying and customer concerns about deposit safety remain top of mind, reciprocal deposits have emerged as a vital tool for community banks. They offer a unique combination of customer reassurance, cost-effectiveness, community support and franchise-building potential. Since its founding over 20 years ago, IntraFi has been chosen by over 3,000 financial institutions. IntraFi’s deposit network is the largest of its kind, and its tested, trusted services help its network members acquire high-value relationships, fund more loans and seamlessly manage liquidity needs. IntraFi invented reciprocal deposits and is the No. 1 provider of deposit placement solutions, offering the largest per-depositor, per-bank capacity. Visit www.intrafi.com to learn more. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at www.intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. Deposit placement through an IntraFi service is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through an IntraFi service at FDIC-insured banks in IntraFi’s network are eligible for FDIC deposit insurance coverage at the network banks. To meet the conditions for passthrough FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage. The depositor may exclude banks from eligibility to receive its funds. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (SMDIA) at any one bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals. The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits. IntraFi and the IntraFi logo are registered service marks of IntraFi LLC. 1. IntraFi Q2 2025 Bank Executive Business Outlook Survey. 2. Docherty, Christine, and Alessio Saretto. “How Do Reciprocal Deposit Networks Interact with Deposit Insurance?” Federal Reserve Bank of Dallas, accessed August 27, 2025. https://www.dallasfed.org/research/ economics/2025/0805. 3. IntraFi Q1 2023 Bank Executive Business Outlook Survey. 29 NEBRASKA BANKER
Steve Lenderman, CFE, Head of Fraud Prevention isolved Most banks are not equipped to tackle a new AI-fuelled era of synthetic identity fraud, writes Steve Lenderman, CFE, an expert in fraud and synthetic identities and head of fraud prevention at isolved. The landscape of synthetic identity creation is evolving rapidly, driven by unprecedented advancements in AI tools that are both more powerful and widely accessible. While automation in identity fraud and its prevention isn’t new, today’s developments dramatically shift the paradigm. What strategies can we adopt to respond effectively? Banks have allocated significant tools and resources to fight fraud, but these efforts have only achieved partial success. Despite their initiatives, fraud losses continue to climb, with synthetic identity fraud now emerging as the leading contributor. It has surpassed traditional forms of fraud like credit card fraud and identity theft. Notably, a 2023 TransUnion report identified synthetic identity fraud as the fastest-growing form of fraud worldwide. Synthetic identity fraud is fundamentally a manipulation of data — blending fragments of genuine personal information with fabricated data to bypass systematic controls and alerts. The focus is shifting away from established schemes such as card fraud, account takeover, impersonation and application fraud involving fake identities and documentation. More sophisticated fraud models like authorized push payment schemes are surging, where legitimate customers initiate payments themselves. This approach simplifies the process of circumventing security measures, making detection and prevention increasingly challenging. Why You’re Probably Not Ready for the Next Wave of Synthetic AI Fraud 30 NEBRASKA BANKER
Four changes are at play here that open new doors to threat actors: 1. Synthetic identity quality now meets quantity. New generative AI tools dramatically ramp up both the quantity as well as the quality of synthetic identity creation — for example, using generative AI to fill in the gaps in identity creation by creating plausible supporting identity content, employment documentation, social media content, images and voices at mass scale. 2. Building and deploying synthetic IDs now takes minutes, not days. AI tools also deliver extreme speed. Viable synthetic identities may have taken several days or weeks to build in the past, requiring significant manual effort. They can now be built in minutes and deployed almost immediately. 3. “Off-the-shelf,” easy-to-use tools are widening the pool of bad actors. Readily available tools, once only hidden deep on the dark web, are now widely accessible through everyday social channels — whether those are generative AI tools focused on creating synthetic identities or code for malicious attacks. This is “de-skilling” synthetic identity fraud, making it a transactional process that many more bad actors can manage, with tools either specifically developed for this purpose or more generic GenAI tools put to that purpose. 4. Orchestration and coordination are on the rise globally. Large, organized groups of bad actors are harnessing these tools, increasingly at an international scale across borders, to create and manage hundreds if not thousands of identities. So, how do industry leaders manage dynamic hidden threats? The good news is that you likely have all the puzzle pieces you need for your systems to answer questions like “Is the person whose application I’m dealing with really the person I think they are?” or “Is this a legitimate transaction request from this long-standing customer?” Banks hold vast amounts of data related to customers, devices, behaviors, transactions and networks. When combined, this data paints a comprehensive picture, incorporating elements like customer and account information, counterparty and transaction details, alert histories, watch lists and negative news screenings. These datasets form the foundation for robust fraud risk management and power analytical models designed to prevent, detect or investigate fraud. However, many banks operate within a fragmented ecosystem of platforms, tools and models, often functioning in isolated silos. Separate operational teams may also focus on distinct fraud types, hindering seamless collaboration and slowing information sharing during investigations. 31 NEBRASKA BANKER
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==