Fintech Takes

Bank Nerd Corner: Debanking and Reputation Risk: What’s Really on the Line?

Dec 11, 2024

01:08:04

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Quick takeaways

Reputation risk can greatly impact a bank's stability and decision-making process.

Debanking is a practice where banks sever ties with customers, potentially to manage risk or control narratives.

Regulators and banks must strive for transparency and accountability to effectively address issues like debanking and reputation risk.

Deep dives

The Importance of Balancing Regulation and Competition

Balancing regulation and competition is crucial in the financial sector. Banks need to assess risk effectively while also allowing for market competition. The focus on fair access laws and regulators' role in ensuring fair treatment of customers is essential. Keeping an eye on regulators' impact on reputation risk and the definition of the role of regulators in debanking scenarios is key.

Intro

2min

Exploring Reputation Risk: A Deep Dive into Banking Narratives

3min

Reputation Risk and Debanking Dilemmas

34min

Navigating the Complexities of Crypto Banking

2min

Transparency in Banking: Addressing Confidentiality and Access

10min

Exploring the Revival of Fair Access Regulation and Its Impact on Banking

2min

The Dynamics of Debanking

15min

Welcome to Bank Nerd Corner! This week, we’re making history. Our first-ever returning guest, Julie Hill—now Dean of the University of Wyoming College of Law—is back with Kiah and Alex to tackle a hot topic: reputation risk.

Is it the boogeyman of compliance, or a real force shaping banking decisions?

Here’s the puzzle we’re unknotting:

• When regulators say "reputation risk," do they mean actual threats to a bank's stability—or is it a way of saying, “Don’t do anything dumb”?

• Can bad press really sink a bank, or are customers too sticky to care? (Looking at you, Wells Fargo.)

• And why is the Supreme Court questioning whether this so-called "risk" even exists?

Plus, we explore debanking—the practice where banks cut ties with customers. Is it actually about managing risk or…just controlling the narrative?

Join us as we dig into the data, decode the headlines, and ask the uncomfortable questions regulators and banks wish we wouldn’t 😏

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Follow Julie:

LinkedIn: https://www.linkedin.com/in/julie-hill-15929821/

Follow Kiah:

LinkedIn: https://www.linkedin.com/in/khaslett/

Twitter: https://twitter.com/khaslett

Follow Alex:

YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos

LinkedIn: https://www.linkedin.com/in/alexhjohnson

Twitter: https://www.twitter.com/AlexH_Johnson