American Banker contributor and Bank Technology News Editor in Chief Penny Crosman interviewed Louis Hernandez, Jr. about how easing regulatory and technology burdens on community based institutions is needed to save the American Dream.

After the conclusion of the Federal Reserve’s Federal Open Market Committee meetings, our Chairman and CEO, Louis Hernandez Jr., was asked to appear on “Markets Now” on Fox Business to discuss what this means for the nation’s economy.

For too long the financial service industry has attempted to prompt its customers to adopt the digital delivery of its monthly statements. Quite frankly and in the opinion of this whacked-out, oft-censored, and certain-Canadian-export-loving Senior Research Analyst, the “Go Green” promotional messages, the cash rewards programs for e-statement enrollment, and the high-rate checking product offerings to modify customer behavior all have gone for naught. The industry has not done enough.

Consumers have taken a radical turn away from physically driving to the local branch of their community-based financial institution, accelerating the shift toward virtual service channels. We’re beginning to see rapid adoption of mobile banking and a desire for native tablet banking apps. Online banking, too, is evolving with heightened expectations for personal financial management (PFM) and more robust payment options.

With the Federal Reserve placing its imprimatur on Capital One Financial Corporation’s acquisition of ING Direct USA from its mother company (ING – Internationale Nederlanden Groep*), this whacked-out, oft-censored, and certain-Canadian-export-loving Senior Research Analyst deemed it appropriate to “eulogize” the business model that the Orange wrought.

Long before Flavor Flav was a reality TV star looking for love in all the wrong places, he and Chuck D were warning us to “don’t, don’t, don’t, don’t believe the hype” in Public Enemy’s 1988 hit single “Don’t Believe the Hype.” More than likely, the seminal hip-hop group was not rapping about whether consumers would flee mega-banks because of checking account fees¹, but the message of looking beneath the surface is as relevant as ever. As public opinion of mega-bank brands such as Bank of America shrinks to all-time lows and big banks become public enemy number one, it’s beneficial for community-based financial institutions to distinguish between hype and reality.

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In a little-publicized move, the Federal Open Market Committee (FOMC) has opted to ease strains extant in global financial markets. Specifically, the action taken:

“included a six-month extension of the sunset date and a 50 basis point reduction in the pricing on the existing liquidity swap arrangements with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank (ECB), and the Swiss National Bank, as well as the establishment, as a contingency measure, of swap arrangements that would allow the Federal Reserve to provide liquidity in the currencies of the foreign central banks should the need arise.”

Louis Hernandez, Jr. talks about collaboration within the financial services industry

What Are You Doing? Holding Up the Building? These famous lines from the Marx Brothers’ film “A Night in Casablanca” are also apropos for this missive. Yes, this whacked-out, oft-censored, and certain-Canadian-export-loving Senior Research Analyst is going to lend his support to the oft-maligned bank branch.