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Recently, I had the opportunity to join President Trump and executives from across America to discuss economic successes and challenges since passage of the Tax Cuts and Jobs Act. Our bank has used tax savings to offer higher deposit interest rates; increase our charitable giving, and we invest in our talent.

With unemployment the lowest it’s been in decades, we find ourselves competing at a higher level to recruit and retain the best talent in an industry that is undergoing radical transformation. Fintech, mobile banking, artificial intelligence, data science, marketing analytics, digital and social media – all of these have changed not only the way that banks work with customers, but also how customers experience banking. We need team members with the skills to understand how these technologies can be effectively applied, and we need customer-centric workforces that are agile and adaptive enough to navigate these changes with minimal disruption to customers.

How do we attract and retain this talent? We try to communicate the full value of what financial institutions and bankers actually do. While it’s vaguely understood that financial institutions manage money for individuals and organizations, the full impact that banks have on customers and on the communities we serve – and the value of that impact – is less well known.

We fuel economic growth and make job creation possible. And, we don’t do it by standing in a cage counting out cash.

Successful financial institutions require a diverse set of talent and skills – from economics to finance to compliance to customer service to technology – that work together seamlessly to provide the products and services that customers need to change their lives.

As regulatory and economic conditions change, and technology moves forward, we continually evolve to ensure that our offerings are timely and relevant. Far from being a stagnant, hierarchically driven industry, financial services is dynamic and perpetually focused on improving customer experiences and outcomes – whether it’s in the form of a new home for a first-time buyer, a business expansion loan for a company that will bring more jobs to the community, or a loan and savings plan that will finance a child’s education or a grandparent’s retirement. Sustainability, community involvement, and customer service are interwoven throughout everything we do.

Our industry is “going digital.” Only those financial institutions that embrace and master cutting-edge technology will survive. That’s easier said, then done.

The national talent recruiter Korn Ferry wrote recently, “Companies are making meaningful investments and commitments to ‘going digital,’ but they still feel like they’re struggling. Despite the fact that 96% of organizations see digital transformation as critical or important, 75% of them are ‘not very confident’ in their ability to execute a digital transformation – and 84% of executives believe that their organizations do not have the skills and capabilities to deliver on their digital ambition.”

We need IT talent, but demand outstrips the supply of skilled individuals. More than three-quarters of financial institutions report that they have created new IT roles in the last two years, but are having a hard time finding the IT talent they need. Half of all financial institutions say that hiring IT staff is either “difficult” or “very difficult,” due in part to the fact that, historically, banks aren’t known as technology or innovation incubators, especially in comparison to big Silicon Valley technology companies.

We must show prospective talent that financial institutions offer entrepreneurial environments where technology skills will be continually developed; where there is a clear, progressive career path for technology leaders; and where their contributions will have a tangible impact on the transformation of the organization.

At Customers Bank we recruit people who fit our culture based on trust and an absolute commitment to customer loyalty and memorable customer service. The vast majority of our new hires come from team member referrals. We know our current team members are best suited to spot potential colleagues so we give them a $250 bonus for every referral that results in a hire.

I meet personally with new hires and, over a welcome lunch, tell them, “The two things that matter most are having something to look forward to and knowing that someone cares about you. At Customers Bank, we’re ‘all in this together.’ If you understand the power of the team, you will have a great future here.”

We never hire someone just to fill an opening. That’s always a mistake. We wait to get the right person for the job and the organization. We treat candidates like valued customers.

After an individual is hired, the respect and nurturing must continue. We can’t simply attract talent; we must retain talent. I am so very pleased that Customers Bank’s turnover rate has ranged between 2% and 7% annually compared to the national average for financial institutions which is over 20%.

We retain employees by offering good compensation, excellent benefits, the opportunity for equity in the bank, a friendly and open-minded environment, and – we hope – fun. What’s the point of doing anything if it isn’t fun? So each office has ice cream parties, or picnics in the middle of the work day, or office outings. The CEO and I attend holiday parties in each region and give out awards for outstanding customer service and performance.

And we invest in continuing education and training. We are instituting a bank-wide “day of learning,” using Mass Open Online Courses (MOOCs) to offer diverse learning to our team members, and working with trade associations and chambers of commerce to join other firms in training and learning opportunities.

But all of this is secondary to our top talent retention tactic: we listen.

Each quarter, we hold a one-hour company-wide conference call to share financial performance results, explain strategy and take questions from team members. The CEO and I hold “town halls” with every business team and administrative unit to gain feedback and hear concerns. Recently we did a company-wide survey to learn from our team what they deem to be “stupid policies.” More than 140 issues were raised and now we are working to improve our policies, procedures, and methods based on suggestions and ideas. Team members said they are inundated by email, so we are experimenting with “No Email Fridays.”

Some of these ideas may not work, but we are listening and trying. Our people are our future. It’s that simple. A stronger, better financial services world will be built from the combined talents of diverse individuals. If I walked away from my conversation with President Trump and other executives with one thing, it was this: opportunities for progress abound, and we’re moving in the right direction. But our long-term success depends on how much we’re truly willing to invest in it – and that’s especially true of the talent that will carry our industry forward.

It’s no secret that mobile banking has completely revolutionized how we, as consumers, manage our finances. From making deposits to checking balances to paying bills, we are increasingly performing our most fundamental banking tasks from the convenience of our mobile devices, 24 hours a day, wherever and whenever we please. In fact, mobile banking has nearly tripled in use – from 23 percent to 64 percent – among U.S. adults in just the past five years, reports ResearchandMarkets.com. According to a recent report from the financial services software provider Fiserv, the use of mobile services like digital wallet use, mobile bill-pay, and person-to-person (P2P) services isn’t just growing; it’s skyrocketing, with an average of nearly 50 percent growth compared to last year.

However, the security of mobile banking transactions remains a serious concern. While more than half of U.S. adults “want to be connected to the web at all times,” according to Fiserv, an equal percentage strongly distrust Internet security and privacy. It’s the greatest paradox of modern-day banking: how can we want the convenience of mobile banking, and be so afraid of it at the same time?

The good news is this: mobile banking does not need to be synonymous with risk. The threat of cyberattacks is relatively low thanks to the system requirements and precautions that banks already have in place. As for other threats: as consumers, we are our own strongest security advocates, capable of keeping our data secure when using our phones to conduct banking – as long as we know how.

Here are some tips to help you enjoy the convenience of mobile banking while keeping your data safe.

Access your accounts from a secure location.
Avoid using unsecured wireless access points, such as those found at airports, coffee shops, and hotels, when logging in to your accounts through your mobile device. Unsecured wireless access points are easy to intercept, putting your login information – and the data it protects – at risk. Only use secured wireless access when you’re banking from your mobile device.

Make sure you’re using your bank’s official app.
Never download banking apps on a “jailbroken” device — one that’s been modified to let users make changes and download apps that aren’t normally accessible or approved for that device — because, when you do, the operating system’s security layer is no longer enforced. Also, be sure to download the app only from your device’s native app store. Avoid apps that require third-party permissions.

Use the most current version of your bank’s mobile app.
Cyberattacks often attempt to leverage “bugs” found in outdated versions of bank apps. Check regularly for updates to your bank’s mobile app, and make sure to download the most current version of it, along with the most current operating system for your device.

Use a strong password – and change it frequently.
Avoid using the same password across multiple online accounts, and make sure you create a strong password that is a mix of upper and lower case letters, numbers, and special characters. Avoid using any words or phrases that contain your name, initials, or your birthdate. For maximum security, update your password every few months.

Enable multi-factor authentication and alerting.
Most banks offer some form of multi-factor authentication like a one-time passcode (OTP) delivered via voice or text. This will thwart criminals that may have compromised your credentials. Also, enable alerts where money leaving your account is involved, as in, when a new bill payee is created or a large amount of money leaves your account. This will help you detect unauthorized activity.

Avoid e-mail and text scams.
Your bank may send you e-mail and/or text alerts and updates. When they do, avoid clicking any links in the e-mail and instead log into your bank’s app to ensure that you’re entering a secure site. In addition, don’t respond to emails or text messages that ask to verify your identity by providing your username or password. Banks will not ask for this information via email or text.

Take additional precautions in case your device is misplaced, lost or stolen.
Set the screen on your mobile device to lock after a certain amount of time and use a password and/or a biometric indicator to unlock your mobile phone. Also, use PINs or other security features enabled on your smart watch. Avoid storing your passwords on your mobile device.

Monitor your accounts.
Check your accounts regularly to make sure all transactions posted are transactions that you authorized. Report any fraudulent or suspicious activity to your bank.

Banks and other financial institutions do everything possible to prevent data breaches. By taking the steps above, you can do even more to ensure that your mobile banking experience will be safe and secure.

I was asked to speak to a group of business leaders gathered in New York City this week about what it takes to manage in a pre-recession environment. As I gave thought to the topic, I realized just how chaotic today’s management landscape is. More than ever, senior managers need to work closely with their bankers to prepare for the road ahead.

For those involved with equity markets, 2018 was a bumpy ride.

Volatility, uncertainty, and changing global economies could provide further headwinds for businesses in 2019. And, many economists believe a recession could be looming for 2020. Those trends are accelerating.

Japan struggled with years of recession and is just now growing economically again. New taxes in Japan, however, could slow that growth. The Chinese and Indian economies are slowing. The Canadian economy, while still strong, is slowing because of the trade war. Great Britain is trying to figure out Brexit. Europe, apart from Germany, is trending toward political and economic chaos and even Germany is stressing.

In the United States, divided government and the run-up to a presidential election are bound to impact public policies that shape the economy.

The Federal Reserve Bank continued to increase rates for its benchmark funds in December to a range of 2.25 percent to 2.5 percent. In recent weeks expectations for continued rate hikes have diminished. Fed Chairman Powell has indicated the Central Bank is considering whether additional hikes are needed to combat inflation fears.

Two consecutive financial quarters of negative GDP growth is the technical definition of a recession. We are already seeing a gradual decline in commercial and industrial lending. If this continues, it’s a good indicator of reduced GDP growth. The Federal Reserve in its January “Beige Book” out this week noted a slow-down in lending in its New York District and slow-downs in other economic sectors. Whether or not the U.S. economy enters a recession in the coming year or two remains to be seen.

Managing in pre-recessionary times requires different business tactics. You can take steps in the short-term to strengthen your business’ financial standing.

It is important to consult a professional banker when evaluating financial strategies and options. Missteps can be costly. Working with a trusted business banker can help chart a safe course and might mitigate the exposure to future rate hikes. A business banker can also provide customized financial strategies and solutions designed to fit your business’ cashflow and credit profile.

Interest rate hikes have a direct effect on small- to medium-size businesses and their performance. Individually, the 0.25 percent hikes in the Fed Funds Rate might seem small, but in the aggregate the cost of money has almost doubled in the past year or so. Now is the time for business owners to take a step back and evaluate their financial strategies.

As interest rates rise, it is worth considering if it is better to use portions of these cash reserves to pay down debt or consolidate loans. Through normal business operations, many small- to medium-sized companies end up with multiple loans with different interest rates and payment schedules. Consolidating those loans can eliminate redundant fees and even reduce the overall interest payments.

Every business should look at the size of its cash reserves to evaluate whether that money could be doing more work elsewhere. A larger reserve, for example, could help absorb expenses and add to interest income. Running a successful business often means having to hold large amounts in cash reserve to offset unexpected expenses and regular operating costs. It is also important to be able to cover slow pays and no pays from clients.

As you prepare your business for the coming year, consider whether you are with the bank that’s best for you. It is worth shopping around to compare business banking services. Large national banks cast a wide net with their product offers, but they may not offer the best overall products for your business. Working with a regional bank that is focused on serving small- to medium-sized businesses and the broader community in which you operate, could result in more product offerings customized and tailored to your exact needs. These banks tend to offer low to no fees, high tech services, and provide personalized customer experiences. They also tend to be more agile and able to adjust to the changing financial headwinds. Most importantly, you want your personal banker to be a decision-maker; an individual who can give you a definitive answer about the products and services you need.

Buckle up. 2019 will be a lot of fun.

These days, just about everyone has been a victim of a data breach where their information was exposed or compromised and, in some cases, used to commit fraud. The proliferation of phishing scams and hackers have made the theft of information commonplace.

Whether the result of malicious parties, or in most cases an individual’s own doing (however unknowingly), the rate of victimization raises the stakes on a question we too often leave unanswered: who is ultimately responsible for monitoring and maintaining the safety of financial and personal data?

On the one hand, the institutions who operate our financial systems have the technical capacity and manpower to monitor and prevent many fraud incidents, and they are the gatekeepers to our data. One might also put the responsibility at the feet of individual customers: they demand anywhere-anytime access to their money, and so surely, they have a responsibility to follow safety protocols and not expose themselves to undue risk.

Ultimately, the answer to this question is that the responsibility falls on both parties to protect personal information and data. Neither organizations nor individuals can guarantee the safety of data or personal information on their own. The best approach to protecting financial information and data requires a combined effort between institutions and the individual.

On the institution side, financial firms like banks, brokerage firms and asset managers, as well as other institutions including retailers and credit unions must reasonably invest in firewalls, anti-virus protection, fraud prevention, encryption, vulnerability management and other technologies that protect customers’ accounts. And, because no system is perfect, these institutions must also employ security specialists to enable vigilance when combating the evolving threats of the cyber world.

To some extent, this is the result of regulatory requirements: financial institutions may be held liable for losses their customers sustain as a result of a bad actor’s infiltration of the institution’s systems. Those regulations unify the interests of the institution and that of their customers, and that unity is precisely why financial institutions so actively track and identify the sources of fraud: recovering their customers’ money may reduce their own liability.

This drive toward security must coexist with a fundamentally incompatible reality: customers want easy access to their money. As institutions meet their customers’ needs with these new systems—from online banking, to smartphone apps, to virtual assistants—they have to build in tools their customers can use to secure their accounts.

As individuals, we have to recognize that while we desire more control over our personal data and money, we have to take steps to ensure we are doing our part to maintain our security. That means enabling multi-factor authentication, using strong passwords, opting-in to account usage alerts, and being careful of insecure networks we use. The individuals who secure their accounts with these simple fraud countermeasures exponentially improve their security. At the end of the day, the security of our financial information and data is not just an issue for institutions or individuals to manage. Data is only as secure as its weakest link, therefore data security is the responsibility of both organizations and individuals, and requires a consistent and active effort by both parties.

Every real estate purchase has its own unique financial characteristics. It is important that the financial institution you decide to work with also provides distinctive programs to meet those needs.

Most banks provide competitive mortgages for first-time or ‘buying-up’ buyers that feature lower interest rates and smaller down payments. However, those programs are not specific to the needs of a financially strong individual who may be considering other real estate investments.

If you are thinking about a second home – the dream beach house or peaceful mountain getaway – and your first thought is to shop for mortgage interest rates, consider another idea. A second set of utility, energy, lawn care and maintenance bills will outweigh a few dollars more or less in interest payments.

Instead, when considering investing in a second home, other key factors to evaluate are your mortgage lender’s speed and flexibility. Long and Foster, one of the Mid-Atlantic’s largest Realtors, reported last year that the inventory of beach homes in Atlantic and Cape May Counties in New Jersey declined in 2018. Long and Foster’s data for Rehoboth Beach, Delaware show the same trends. When the bottom fell out of the Pocono real estate market, developers canceled plans for new communities so inventory in the mountain region is somewhat limited.

If you see your dream vacation home on the market, you want to be able to say “yes” as quickly as possible. And, sellers are more prone to accept an offer from the prospective purchaser who can say they will be able to have financing in place and close within a few weeks.

The same scenario applies to purchasing a quaint historic property or a country estate. You’re not the only person keeping an eye on that parcel of land. When it goes on the market you must strike quickly and with confidence in your ability to close the deal.

Jumbo mortgages are typically designed for borrowers with higher incomes, good credit and financial reserves. These programs typically feature principal balances of up to $1 million or higher, adjustable interest rates and require no mortgage insurance. Financial documentation requirements for Jumbo mortgages could include bank statements or asset portfolios, making it ideal for people who are self-employed or individuals with non-traditional income documentation.

For individuals and families who need to close quickly or may have special circumstances, it is important to work with a lender who can meet these needs. It is also important to work with a lender who can make decisions quickly and is able to deliver fast approvals.

Spring is here. If you act now, you can enjoy your second home this summer. While you are browsing inventory and thinking about making your dream a reality, meet with your lender. Learn whether your lender has a program that meets your needs. Shop lenders looking for the ones who understand that every real estate investment is unique – and an important life step for you.

In today’s business environment, regardless of industry, most business leaders and executives recognize a company’s Team Members as its’ most valuable asset. However, at the same time, many companies do not focus on employee development.

Today, most companies offer training programs or internally developed courses focused on refreshing critical skills needed to perform specific job tasks. These programs are important from a business perspective as they can help maintain a certain level of proficiency; however, they offer little benefit for Team Members seeking to gain new knowledge or advance their career.

Career stagnation tends to lead to job dissatisfaction, which in turn leads to an increase in job hopping, which has increased by 22% in 2018 compared to just four years earlier – according to findings from Robert Half. With recruiting costs skyrocketing to over $4,000 per position – according to Glassdoor.com – companies have to do a better job of investing in staff and rewarding high performers.

In designing an effective employee retention campaign, executives should look to programs that align with their business’ culture. The best programs also incorporate what psychologists believe are the three pillars of success – IQ, EQ and AQ. While Intelligence Quotient (IQ) addresses an individuals’ ability to learn and understand, psychologists believe that life success only depends 20% on IQ. This means that the most successful programs focus heavily on an employees’ Emotional Quotient (EQ) and Adaptability Quotient (AQ).

The EQ is an individual’s ability to perceive, assess and manage their own emotions and those of others, which is an important factor in building relationships with co-workers and customers. The AQ is the ability to face and overcome changes and adversities, while turning them into opportunities for greater achievement. In the business environment, a high EQ helps our Team Members relate to customers and have empathy for how they feel, while a high AQ helps workers find solutions to meet clients’ needs.

Customers Bank incorporated these values in its CUBI University, an initiative tied to the CEO’s values and the Bank’s culture of teamwork and lifetime learning, to encourage Team Members to take ownership of their careers. To advance that culture, CUBI University provides our Team Members with the same high-tech, high-touch, concierge service we offer to business and individual customers.

The courses we promote are designed to be flexible and relevant to the individual. By utilizing the courses provided by massive open online courses (MOOC), we enabled Team Members to participate in classes on a schedule that fits their work/life balance while maintaining scalability. The classes can be started, paused and finished at a later date or time. And CUBI University recommends MOOC focused on career development and a wide variety of personal interests stretching from cooking classes to piano lessons—not just courses centered on the Team Member’s current job.

By providing Team Members with development opportunities that fit their lifestyle and career ambition, we’ve seen an increase in Team Member engagement. As Team Members advance their career, they are rewarded with opportunities to enhance current positions, transfer within business groups, or to take their career in an entirely new direction. That’s an investment any business should be happy to make.

As part of the 2018 Farm Bill, industrial hemp was legalized on the federal level. Industrial hemp and hemp-derived cannabidiol (CBD) products are not the same as, nor should they be confused with marijuana. Marijuana remains an illegal and controlled substance in our nation. Hemp and hemp-derived CDB are also not related to medicinal marijuana, which has been legalized in thirty-three states but remains on the federal schedule 1 list of drugs with a high potential for abuse.

With certain limitations and additional requirements, the passing of the Farm Bill has made it legal for banking institutions to provide services to hemp-related businesses, as well as hemp-derived CBD product companies. As a newly legalized market, industrial hemp and hemp-derived CBD products represent exactly the types of opportunities that banking leaders should be pursuing. While remaining focused on the legalities and enhanced regulatory requirements placed upon this industry, it represents the type of opportunities that Customers Bank continues to pursue due to the potential economic growth throughout the region and nationally.

According to a published research report by Fior Markets, the global industrial hemp market is expected to reach $14.6 billion by 2026, and according to a June 2019 article in Hemp Industry Daily, the U.S. CBD market alone is projected to reach $7 billion in 2023.

Before the 2018 Farm Bill passed, banks could not serve farmers growing hemp or firms involved with hemp-derived CBD products. Even where hemp and hemp-derived CBD products were legal at the state level, businesses offering associated products were effectively barred from the financial sector, even for basic banking services. Most of these companies either operated as cash-only businesses or paid high-risk fees for financial services, and oftentimes, those services could go away overnight, without notice, leaving these businesses to struggle with payment processing and other issues.

Industrial hemp and hemp-derived CBD businesses are modern farming and pharmaceutical-grade processing businesses. While this sector does require additional paperwork and monitoring, it is no different than any other industry and should be provided the same access to modern banking services as other businesses.

The banking industry, as a whole, tends to be very cautious and slow-moving in regard to new markets. This is rightly so, as banking leaders have to carefully explore new markets, conduct due diligence and assess risk.

Because newly created markets necessarily involve disproportionate uncertainty, many banks stay on the sidelines awaiting a proven-successful approach to emerge. This is the wrong strategy and involves excess risk aversion. This slow-moving, cautious, risk-averse tendency creates tremendous market opportunities for industry leaders that are nimble and able to quickly adapt to market changes.

Banks have long observed that persuading businesses to change banking institutions is difficult, both for the bank and for the business. This observation underscores the necessity of competing early. According to a J.D. Power study, approximately 20% of fast-growing small businesses and only 5% of other small businesses change banks each year. Financial institutions that are slow to establish relationships with these new, currently unbanked, businesses will struggle to gain a meaningful foothold in this sector, even if those institutions end up offering better products.

For Customers Bank, offering commercial deposit products and services to hemp-related businesses and hemp-derived CBD product companies is a smart decision for the business, our communities and the region’s economic growth. By providing commercial banking services to hemp-related businesses based in Pennsylvania and New York, Customers Bank is helping these fledgling companies gain access to knowledgeable business bankers. These business bankers, who understand hemp-related businesses and the hemp-derived CBD products industry, can recommend appropriate financial products and services to grow sustainable businesses that address legitimate market needs.

Conclusion
As hemp-related businesses scale in size, the benefits to the surrounding communities will be far-reaching. These companies not only will generate new job growth in the community, they will also produce positive upstream effects for their suppliers and service-providers. Innovative banking leaders need to create appropriate internal policies and procedures to enable their institutions to provide financial services to legal hemp-related businesses and the hemp-derived CBD products sector.

The 2018 Farm Bill ended an 80-year Federal ban on growing industrial hemp. This law opens the U.S. to a global market, that according to research firm FIOR Markets, is expected to increase from $4.41 billion in 2018 to an estimated $14.67 billion by 2026. According to a report by Hemp Business Journal, total sales for the U.S. hemp industry reached $820 million in 2017, and is projected to reach $1.9 billion by 2022.

Despite the economic opportunity, governing public policy is unclear.  There remains significant ambiguity regarding licensing, testing, processing, transportation, law enforcement and even access to banking services for hemp-related businesses.  Spreading the authority for rules and regulations across numerous regulatory agencies is the cause of the ambiguity and confusion.

According to Erica Stark, Executive Director for the Pennsylvania Hemp Industry Council (PAHIC), while the Farm Bill legalized the growing, processing and marketing of industrial hemp, it placed the U.S. Department of Agriculture (USDA) in charge of regulating the cultivation of industrial hemp.  The Farm Bill, however, preserves states’ rights validating the power of each state to determine whether it will allow cultivation.  Those that will allow cultivation of industrial hemp must submit a statewide plan to the USDA.

Under the Farm Bill, hemp-derived CBD (cannabidiol) products were placed under the jurisdiction of the U.S. Food and Drug Administration (FDA).  FDA rules make it illegal to sell food that contains CBD ingredients and to market CBD products as dietary supplements.

Missing from the Farm Bill altogether was direction to the many regulatory agencies that oversee banks and credit unions: state agencies, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Bank, the Office of the Comptroller of the Currency (OCC), Farm Credit Administration (FCA) and the National Credit Union Administration (NCUA).

Each agency is autonomous and has its own lengthy rule-making process and procedures.  Each supervises banks or credit unions in its own unique way.  There have been calls by policymakers and political candidates for a rational approach and clear guidance.  On August 15, Marijuana Moment – a self-described up-to-the-minute news source covering the politics, business and culture of cannabis – reported that the heads of the Federal Reserve, FDIC, OCC, FCA and NCUA responded they do not plan on issuing specific guidance related to banking hemp-related businesses, but they are continuing to have conversations with financial institutions about the topic and will monitor the industry. Most of the agencies made it clear the decision to open, close and decline accounts is left up to the individual financial institution. However, more recently, the NCUA announced it will allow federally insured credit unions to provide select financial services to HRB.

Taking Initiative

Customers Bank knows the patchwork of public policy is confusing.  We’re monitoring the development of policy and creating internal procedures and controls that allow us to provide much needed banking services in conformity with law and regulations, protecting ourselves and our clients.

While other banks turn away businesses in this growing industry, our commitment to the economic wellbeing of our community and region drives us to engage with hemp and hemp-derived CBD companies, helping them set up their businesses, take payments and grow sustainably. Our industry experts have identified banking solutions to address the unique requirements of hemp-related businesses and hemp-derived CBD businesses.

We are committed to offering a full suite of commercial banking services, along with online banking options, customized to meet the specific needs of hemp-related and hemp-derived CBD companies, including: Commercial Checking, Online and Mobile Banking, Fraud Protection, ACH Payment, Online Wire Transfer Services, Business Bill Pay and more.

In addition, we pair our hemp-related business and hemp-derived CBD customers with a knowledgeable specialty team who understands the industry and combines personalized service with local decision-making to help grow and support these important businesses.

Having the right banking partner is a key to success for any business. Choosing the right financial partner for hemp-related business and hemp-derived CBD companies is critical as numerous financial institutions have dropped banking services for such businesses without notice. Having a relationship with your banker is important to your growing business needs — today, tomorrow and in the future.

Contact us today to learn how we can help grow your hemp-related business or hemp-derived CBD business.

Business and community leaders tend to focus on the livelihood of their respective organizations, and may not be aware of external influences affecting team members and the community. The opioid epidemic is one of the most pressing issues facing our local communities and the country.

Customers Bank cares deeply about the health of our team members, neighbors and the communities in which we live and work. This concern shapes the products and services we offer to help strengthen businesses and the region. It is also a driver in identifying the causes we support through investments and donations.

Business leaders have an obligation to take action against influences that negatively impact team members, neighborhoods and the nation. According to information from the U.S. Senate, previous estimates have significantly underestimated the economic impact of the opioid crisis. The Centers for Disease Control and Prevention (CDC) released data stating the total economic impact of opioid-related fatalities in Pennsylvania from 2012 through 2016 was $142 billion.

The economic impact is huge, but we cannot lose sight of the effect this epidemic is having on individual’s lives. According to the Philadelphia Fed, there are numerous unquantifiable effects of the opioid epidemic. These range from the pain and suffering families go through to a decrease in the quality of life for individuals suffering from the chronic disease of addiction. There is also the loss of life and income that goes along with fatal overdoses. In addition, the Philadelphia Fed also addressed decreased property values, as well as a loss of community well-being and safety.

Customers Bank is concerned about the opioid epidemic and understands it can be difficult to make meaningful contributions as a single entity. However, the opioid epidemic is not something that can be addressed by first responders alone: businesses have an active role to play. Healthcare and treatment providers have been on the front lines addressing this national health crisis for years. It is time for businesses and community leaders to stand up, get involved and take action.

The U.S. Chamber of Commerce Foundation in conjunction with the PA Chamber of Commerce and Greater Reading Chamber Alliance recently conducted a Sharing Solutions: Eastern Pennsylvania Opioids and the Workforce program. The purpose of the program was to further the conversation and increase awareness about how business leaders can support addiction treatment and solutions to end the opioid epidemic. Customers Bank was honored to participate in the event alongside representatives from Leidos, Sandoz, Kroger Health, iHeartMedia, Caron Treatment Centers and the Council on Chemical Abuse.

Representatives participating in the U.S. Chamber of Commerce’s program stressed the importance of focusing on approaches that increase awareness, address prevention and best practices for treatment and recovery. Below are several meaningful actions discussed during the program that business leaders should take.

• Businesses need to partner with government agencies, community organizations and treatment centers to increase awareness regarding associated risks, alternative pain management strategies and the transformative power of addiction treatment and recovery.
• Companies should host benefit awareness programs to explain the breadth of services provided and how team members can access them when they are needed most.
• Businesses should work with benefits providers to limit opioids prescriptions to a seven day supply. Participants shared that dependency on opioids can develop in as few as ten days and only through careful monitoring by a doctor should prescriptions be renewed.
• Addiction is a chronic disease and much like diabetes or arthritis, it requires ongoing management and a commitment to recovery. Businesses need to create an environment where team members feel comfortable addressing the need for help and staying active in their commitment to recovery.
• Treatment can and should be tailored to an individual’s specific needs and circumstances. Business leaders can support access to treatment in several ways including by contributing funding, working with government leaders to influence change, or advocating for comprehensive healthcare payment models.

The good news is that progress has been made. Awareness of the health crisis has increased and legislative and legal action has been taken. Providers like Caron Treatment Centers continue to advocate for quality, comprehensive treatment and the rights of patients and families.

But more work needs to be done. I applaud the efforts being made by Berks County Opioid Task Force, Caron Treatment Centers and the Council on Chemical Abuse right here in Berks County. Local businesses should be working with these and other organizations to help residents.

As a community-focused bank, Customers Bank goes beyond providing financial products and services to personal and business clients. The Bank takes an active role in supporting the neighborhoods and communities we serve. This community focus is part of our founding principles and takes many forms including charitable donations, sponsorships, volunteering, support for community organizations and programs, as well as bringing awareness to issues that impact our communities.

Now is the time to take action. Get informed, spread awareness and engage with the community to help end the opioid epidemic.

Today’s mortgage interest rates are very close to the lowest rates in recorded history (3.3 percent according to Freddie Mac). This means now may be the perfect time to purchase a new home or refinance an existing mortgage. The low rates may also make it financially feasible for families sitting on the sidelines to enter the housing market.

Regardless of whether you are considering a first-time purchase, a larger dream home, downsizing or refinancing an existing mortgage, it is important to work with an experienced and trusted lender.

According to research from Zillow, for-sale inventory has declined by 6.4 percent compared to last year, reinforcing the importance of being able to act quickly and present your best offer. Working with a seasoned mortgage lender ensures buyers have access to the best possible mortgage products to meet their specific financial situations.

Talking to an experienced loan officer will help you determine if a first-time homebuyer loan is the best option for you or a different type of mortgage product. Other mortgage products that could meet specific situations include programs for self-employed individuals, fixed-rate, adjustable-rate, interest-only, government-backed or possibly even a reverse mortgage.

Whichever mortgage product fits your unique needs, securing a prequalified loan from a loan officer provides you with greater control. Prequalified buyers know exactly how much they can afford and real estate agents believe prequalified purchasers are able to make better offers.

Homeowners waiting on the sidelines to catch the lowest rate to refinance an existing mortgage should act now, as well. It is safe to say that it may not be worth waiting and missing a sound financial opportunity. Saving money on a mortgage will help you build your wealth.

By refinancing today, homeowners can potentially save hundreds of dollars each month. That can translate to thousands of dollars over the lifespan of the loan.

If the homeowner has owned their house for five or more years, refinancing may help remove the requirement for mortgage insurance which also increases savings. Benefits of refinancing higher rate mortgages can include lowering interest rates, providing better terms and possibly shortening the length of the mortgage.

If now is not the ideal time for you to purchase or refinance a home, stay in touch with your lender. Keep saving and keep your credit in good order so you will be ready when the timing is right for you.

Customers Bank is a full-service lender providing a full array of consumer and business loan products. The bank is an active mortgage lender in Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Virginia and the greater Washington DC region. Customers Bank is a member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation. Customers Bank is an equal housing lender.

As our world becomes more digital, government agencies and businesses alike are being confronted with questions about consumer data. What’s being collected? How is it being used? Is the data secured? Answers have varied, and haven’t always been transparent. In response to the ever-growing and complex world that is the internet and data collection, the California Consumer Privacy Act of 2018 (CCPA) was passed and went into effect on January 1, 2020.

If you are a business owner or IT decision maker, you’ve likely already taken steps to ensure that your business, website and data collection procedures are in compliance with the CCPA. And things are still in motion- lawmakers and CCPA advocates are working on a new round of privacy regulations. These additional regulations could create a distinct agency to enforce the laws and create an opt-in system for consumers under the age of 16. The new round of regulations could further restrict the use of what the initiative calls “sensitive personal information,” which includes data such as location, health status and sexual orientation. This means business owners and technology leaders should stay tuned as additional developments are debated and implemented.

Are you feeling overwhelmed? While all the changes and new compliance measures can make your head spin, I see this as a big opportunity for business leaders and decision makers to rethink their approach to data collection and security. The response to the CCPA should not be a band-aid approach that simply checks the box. Instead, business owners can leverage this moment and answer the shift in the law with strategic change. Strengthen the security of data and strengthen trust with consumers.

The changes required to make your business compliant with the CCPA can offer guideposts for establishing sustainable processes that support the health of your business. For example, desensitizing information and using pseudonymization or anonymization can be a simple and effective approach that would, in essence, render all information useless to data miners.

I’ve read many articles about the business expense – both money and time – that the CCPA will have for businesses. I’d argue that the cost is inevitable, though. Whether in response to the CCPA or the increasing consumer demand for data security and digital transformation, businesses will need to move toward investing in their data infrastructure and strategies that allow all the functions of a business to operate seamlessly together. Our new normal includes a heavy emphasis on the digital economy. Companies that accept and adopt an offensive strategy will remain competitive, while those that choose to hold out may not survive.

Customers Bank is in the midst of a digital evolution. We understand this is a big statement, and because tech buzzwords and phrases are often overused, we felt it was important to lay out our vision as we embark on this exciting new chapter at Customers Bank. This undertaking involves much more than providing online banking functions and an easy to use banking app. Our business will be fundamentally transformed, positively affecting our customers, Team Members and ultimately the future of the company.

We have made it our vision to be a digital company that provides financial services to help our customers succeed. We are evolving as a bank, to become an inherently digital organization. Our digital evolution starts with internal, cultural change. A Digital Transformation & the Workforce study from IndustryWeek found 71% of leaders believe the workforce is important in supporting their digital transformation strategy. We know our ability to provide experiences that amaze customers has always been driven by our Team Members. Our Team Members are empowered to identify new avenues that streamline processes, leverage artificial intelligence and to look to consider technology a vital component of providing seamless and engaging customer experiences. We call this evolving our Team Members into “digital citizens.” Planning got us to this starting line, but Team Member adoption and support is what will take us across the finish line.

We understand that this is a completely new approach to banking and will challenge every Team Member to deconstruct and reinvent their job responsibilities. We see this as a good thing. Growth in every aspect of our lives, both professionally and personally, is inevitable. Think of where the financial services industry started and where it is today. Younger generations may not remember, but there was a time when getting access to one’s own money meant getting in line at the local bank branch. The country’s first ATM appeared in 1969, making it possible – but not always free – to withdraw cash anytime. Fast-forward to 2020 and digital banking has made it possible to complete financial transactions with just a personal computer or smartphone.

Given that we are living in 2020, we have also made it our mission to modernize our technology platforms so we have the agility to adapt to the ever-changing customer preferences we are all experiencing in this 4th industrial revolution. We know that the stakes have risen to providing not only the service, but also a frictionless, exciting experience, which is just as important in the service industry today. In addition to adapting to these changes with our customer base, we are also simultaneously modernizing our internal technology platforms with tools and capabilities that enable multidisciplinary teams to seamlessly collaborate on behalf of our customers. We see this aspect as key.

Harnessing the power of data and AI insights for the benefit of our customer is another cornerstone to our digital evolution. We are using the work that comes out of AI and machine learning to automate work to really reap the benefits of productivity and efficiency. This has also led to new career paths for our Team Members. They are developing critical skills that are very much needed in this 21st-century world and beyond. Gone are the days where we are looking to hire large groups of clerical type roles to open up accounts and check off reports every day. We have new positions that manage the “bots” that review the reports, and manage the data health so we are always ensuring the best possible experience for our customers. With the integration of industry-leading technology, including Salesforce, our new digital structure will continuously drive change to enhance customer experiences and operate more efficiently. In fact, in a six month period we’ve already saved over $500,000 in annualized time savings, which will expand Team Members’ capabilities and create the capacity to support future growth. In 2020 we will more than double this number!

As we focus on building out multidisciplinary teams that align to the single-point-of-contact model Customers Bank was built on, and remaining vigilant in our pursuit of the power of our data and AI, we will define a new standard in financial services.

It’s an exciting time to be in banking and to be at Customers Bank. This digital-first vision will provide tremendous opportunity for enhanced customer experiences, and Team Member and company growth.

It’s 2020, and we’re not driving flying cars yet. We are, however, embracing new technological advancements at home and in the office. Digital assistants like Siri and Alexa, the omnipresent cloud, and the ubiquitous thought “there’s an app for that” are just a few examples of the digital-first lifestyle that has become the norm.

While technology has certainly made our lives easier and created opportunities to connect with customers and colleagues, it has also presented challenges that business leaders must plan for and actively confront. Every new method of customer interaction requires additional data collection and new procedures, security protocols and an offensive and defensive strategy for handling a data breach.

In recent years, data breaches have affected companies large and small, including Wawa and Capital One. In the case of Wawa, the data breach affected all 850 locations. At Capital One, more than 100 million records were compromised and the company is expected to experience between $100 million to $150 million in related costs.

So what’s a business owner or chief technology officer to do? Believe it or not, implementing more digital processes and automation can help with data management and security. From an information security perspective, two of the most significant benefits are identical and repeatable results. Automating paper-based processes into digital experiences enables businesses to increase process efficiencies, lower costs, improve consistency in communication and reduce chances for human errors. And ultimately, all these benefits ladder up to increased security.

Data transparency can also be improved with automation. With the ability to quickly and easily access data throughout the organization, the accuracy of data is assured, business processes become more efficient and team members increase productivity.

Take Aflac, for example. The company wanted an analytics-driven security approach to protect approximately 10,000 team members, its customers and its brand reputation. By implementing automation processes and tools, the company reportedly blocked more than two million security threats in six months and saved 40 hours per month by automating manual processes.

I encourage business leaders to embrace automation as part of a digital transformation strategy. In addition to more secure data and more efficiency across the organization, this technology offers a competitive edge from a business and consumer experience perspective. The value it can provide both the business and to customers far outweighs the risk, that to be frank, exists with or without a digital-first mindset.

Pop quiz: What is an essential element of any digital transformation project?

You may think the obvious answer is the technology – fair thought given the word digital is baked into what we’re discussing. The right answer: Your people. To be more specific, your people, and the culture of your organization.

Some of the most admired companies boast an internal culture that gets them attention from prospective employees and the media alike. CB Insights, a New York-based machine learning company, credits its culture as a significant driver of the business’ success. The firm built its culture based on learning. CB provides opportunities for employees to develop new skills to further their education and grow within the organization. This has led to increased internal collaborations, which enable team members to learn about new business practices, different departments or special projects. Are cross-functional collaborations, continual learning and digital goals incentivized as part of your core culture?

International Data Corporation projects businesses will spend approximately $2 trillion in 2022 on digital transformations. That’s a lot of initiatives! With so many different goals and objectives, implementing a successful digital transformation will rely heavily on employee buy-in. As leaders, a central aspect of any transformation project will be to establish digital-first thinking into our company cultures. Yes, the technology and solutions we implement will need to be high quality and fit seamlessly within our business functions, but without employee support and adoption, we won’t get far.

The CTO of Clearbridge Mobile highlighted many digital transformation projects fail because of a lack of motivation or understanding from employees. IT Pro Portal reiterates that the success or failure of a digital transformation depends primarily on whether employees support the initiative. Think about that for a moment. Without the employees’ support, they will revert to the old tried and true procedures and processes, and the investment in new technologies and increased capabilities will be for naught.

Digital transformation changes how departments operate and how services are delivered to provide better customer experiences. For traditional industries like banking, successfully integrating new capabilities requires a massive cultural shift, one that affects all team members making it vital to start the process with them. This can seem like an enormous undertaking, but simple approaches to people management and education sharing can actually make this an exciting undertaking company-wide:

Build Interest and Excitement– Meet with individual departments to explain how the digital transformation will enhance manual procedures and, ultimately, enable better customer experiences. Make the meetings interactive. Discuss concerns, questions and opportunities for additional adoption of the new technologies.

Establish Digital Champions – Appointing a champion for each department further helps increase team member engagement. That individual can also serve to identify and communicate departmental challenges to you before they create more significant integration issues.

Create a Learning Coach Program – There is a lot of research that demonstrates the importance of employee training programs to a business and the employee, as well as how they factor into job satisfaction and retention. Additionally, from a business perspective, it is vital all team members know how to use the new technology. And from the team member’s perspective, being identified as a learning coach can provide important recognition and responsibility.

When it comes to digital transformation, there are many moving parts and priorities that may differ between industries. I do, however, believe there are several universal truths, and unfortunately pitfalls, that businesses in every sector need to keep in mind. I hope that by focusing on several of the issues which can be overlooked – such as the importance of automation, thoroughly understanding the entire business and the role culture and team members play – I have provided you with several nuggets you can infuse into your digital transformation plans. Our world is continually evolving, especially regarding technological developments, but I expect these foundational rules of thumb will remain true, even after we’ve cracked the code on flying cars.

Homeownership is part of the American Dream. It often marks a milestone for individuals and families as they take on property that is their own. According to Statista, homeownership has been on the rise since 2017, and industry experts expect the number of U.S. homeowners to grow. One factor driving growth in the homeowner market – millennials are getting older and starting to grow their families. As the generation gets older, they’re looking for more space that allows them to enjoy the comforts and convenience of a suburban lifestyle.

Interestingly, COVID-19 stay-at-home orders and work-from-home arrangements could also influence more individuals to explore homeownership, according to real estate experts. Society’s understanding of what personal space can be used for has expanded. A new precedent has been set for workspace and our tie to traditional offices. Pair all this with historically low mortgage interest rates, reported by Freddie Mac, and it’s an exciting time to work with individuals taking steps toward owning their own home.

The historically low mortgage interest rates make the dream of homeownership and building wealth more attainable to a more significant number of families and individuals. According to the Consumer Financial Protection Bureau, saving even a fraction of a percent on mortgage interest rates can generate thousands of dollars in savings throughout the course of a loan. The low rates also mean it is more affordable for families to borrow money. With mortgage interest rates near the lowest point they have been since the 1970s, many potential buyers are further encouraged that now is the best time to enter the real estate market.

Further supporting the desire to build wealth, a Forbes article recently reported a typical homeowner would be ahead of an average renter on a lifetime financial achievement scale by a multiple of 45, based on a medium figure. The financial implications of homeownership can also include tax benefits and building equity that help accumulate wealth as we age, according to Moving.com – part of the Realtor.com network. Homeowners also foster a sense of financial stability as monthly housing expenses can remain fixed depending on the type of mortgage compared to renting.

Another significant influence on the resurgence in the desire for homeownership stems from the mandated stay-at-home orders as a result of the Coronavirus pandemic and the realization of the health benefits related to homeownership. According to Sold.com, having a fixed monthly housing payment lowers homeowners’ level of stress – which can affect both mental and physical health – as they no longer worry about the ups and downs in the real estate market. The fixed monthly payment can also enable homeowners to make better financial plans that can further increase their sense of security and lower stress. Additionally, unlike a renter, homeowners have greater control over their environment as they have the flexibility to choose what products are used both in the home and on private outdoor space. The importance of outdoor living space has been stressed by numerous organizations that have stated spending time outside has a dramatic effect on relieving anxiety, stress and depression.

Homeownership also supports the growth of communities and the American economy. According to the National Association of Realtors (NAR), one job is created for every two existing homes purchased. NAR also reports that approximately $60,000 is contributed to the economy from each home sale. As homebuyers want to make renovations or home improvements to tailor a house to their needs, they hire contractors, purchase building materials and other products that boost the local economy. Those professionals then spend more money in the community at restaurants, sporting events, movies and other activities. The desire for new furniture, window coverings, carpets and other housewares further drives money to local businesses, that lead to increased job creation in the community.

This domino effect can even have a positive influence on safety and activism in communities. As more members of a community attain homeownership, they also become more invested in the local region, leading to a reduction in crime. The Forbes article also stated homeowners are more likely to be active in the community through volunteering, local elections and civic engagements compared to renters who prefer the flexibility and ability to relocate easily.

Ultimately, there are many factors for the resurgence of interest in homeownership. This includes Americans re-evaluating their housing options after more than two months of mandated stay-at-home orders across the nation. At the same time, the millennial generation continues to become more settled in their careers as they move into the 30-40 age demographic, so they have naturally started exploring homeownership as the next step toward their American Dream and building personal wealth.

What is clear is that with interest rates on 30-year fixed-rate mortgages hitting an all-time historic low, now is an ideal time to consider a first-time home purchase, refinancing or moving to a more spacious home. According to Freddie Mac, the unprecedented rates are impacting purchasing demand, which has rebound from a 35% year-over-year decline in mid-April to approximately an 8% increase more recently. As more homebuyers take advantage of these extremely low interest rates, this will boost the economy and help lead to a faster recovery.

At Customers Bank, we firmly believe the pillars of success are IQ, AQ and EQ. Most business leaders acknowledge that the Intelligence Quotient (IQ) is vital in determining a potential candidate’s ability to perform specific tasks associated with a position. IQ is what gets an individual in the door for an interview; however, it is the Adaptability Quotient (AQ) and the Emotional Quotient (EQ) that determine if the candidate is a good fit for an organization’s culture.

An equally crucial offshoot of EQ that has been getting a lot of attention lately due to current events is the Cultural Quotient (CQ). While EQ focuses on one’s ability to have self-awareness and empathy, CQ picks up where EQ leaves off to focus on cultural intelligence and the ability to work and relate effectively across cultures. This awareness can include the ability to recognize unfamiliar and ambiguous gestures and phrases, as well as cultural differences to avoid misunderstandings.

CQ becomes vitally important in business environments where the workforce is becoming more diverse and industries are increasingly dealing with diverse cultures. Cultural differences can be as subtle as changes in management styles between the offices of a single company or they can be strikingly apparent, such as when two multi-national corporations based in different countries try to collaborate on a project.

In the technology sector, there’s been a recent push led by tech giants like Microsoft, Google and other industry juggernauts to reevaluate the terminology that could be misconstrued by industry insiders and outsiders. Most industries widely accept using terms such as whitelisting and blacklisting to refer to trusted vendors and applications, but that does not make these terms any less offensive. Among other terminology the tech industry is trying to address are labels like master and slave, which refer to a model where one device controls other identical devices. The prevalence of a term does not make it any less offensive and it is very encouraging to see industry leaders step up to become more culturally aware.

Just like the tech sectors desire to be more inclusive and culturally aware, the good news is that individuals can improve their CQ. Several years ago, Harvard Business Review published an in-depth article on this topic that included several examples that demonstrated the importance of Cultural Intelligence and how it can affect one’s career growth.

Anyone looking to improve their CQ skills would benefit from the steps identified in the article to build greater cultural awareness. Continually developing one’s CQ abilities enables us to grow and expand beyond our own experiences. This personal growth is critical to recognizing the importance and influence of cultural differences and appreciating how they can change our lives.

The fourth industrial revolution is about a technological revolution that is fundamentally changing the way we live, work and relate to one another. In many industries and especially in the banking sector, companies need to embrace all things digital. Industry leaders are taking the next natural step in the progression to become digital entities, seeking additional opportunities for greater efficiencies and increased returns on investments.

This transition has been accelerated over the last eight months due to stay-at-home orders to lessen the impact of the COVID-19 pandemic and the need for companies of all sizes to support remote workforces. Simultaneously, there has been a tremendous consumer shift to digital services to meet their daily and weekly needs. Consumers have become more comfortable relying on technology for everyday needs, including grocery shopping, banking, entertainment, video calls with healthcare providers and much more.

This accelerated adoption of digital services has propelled many businesses, including large and small financial institutions, to implement technological advances sooner than their original three- to five-year plans. At the same time, it is crucial that companies re-evaluate how they operate to stay competitive and relevant as consumers’ habits change and they seek the greatest value at their convenience.

Looking internally at corporate structures and how best to support the rapid changes can have some surprising realizations. The biggest surprise may be that technology oversight is no longer solely the responsibility of the CIO or CTO.

The importance of managing and implementing information and digital technology is not going to disappear. However, the role of embracing new technology and identifying opportunities to introduce greater efficiencies will be part of everyone’s role. This will be the most noticeable trend as businesses move to embrace new technology.

It will no longer be the IT department’s responsibility to identify technology solutions to enhance current operations. Each employee will have to embrace, that as part of their role, they will be expected to identify aspects of their job that can be automated, streamlined or enhanced by digitizing traditional business practices.

Checking off boxes to ensure historical processes are completed will no longer be an indication of job performance. Having the confidence to try new approaches to provide better customer experiences or create productivity efficiencies will become key indicators. Employees will need added support so they have the confidence to try new approaches without the fear of negative consequences if a new process does not go as planned.

Many of the catalysts of the fourth industrial revolution, the Internet of Things (IoT), virtual reality and automation are already part of our lives. IT is no longer in a silo and has become part of our DNA especially for digital natives who grew up with technology, or digital mavericks who embrace tech and the change that it brings. When an app or digital device requires an update, they naturally accept there will be changes. In the same fashion, businesses need to recognize that change is constantly occurring throughout the organization, industry and in consumer preferences.

Our ability to adapt to change due to the COVID pandemic and transitioning to remote work environments reinforces the significance of our digital culture. As the fourth industrial revolution continues to evolve, industry leaders in the banking sector must recognize that our business is based on technology; otherwise, they will find themselves lost very quickly.

COVID isn’t the only malicious virus we’re facing in 2021.  Cybercriminals have become emboldened with new and more deadly “ransomware” attacks.  Customers Bank wants to help its clients take steps to protect against these attacks that can impose significant costs, destroy a reputation, and take down a business.

RANSOMWARE DEFINED…

A ransomware attack uses malicious code to block access to computer systems and the data they hold. This data becomes encrypted using a key possessed only by the attacker. If anyone tries to access the restricted system or data, they will find a ransom note demanding the payment of a ransom fee in order to restore access. Most organizations are not prepared for a ransomware attack, so they feel pressured into paying expensive ransom fees and recovery costs.  These ransom demands have increased drastically in recent years and now average hundreds of thousands of dollars.

PREVALENCE AND THE RISKS…

Not all of the ransom attacks come from people in a dark basement.  Increasingly, nation-states with sophisticated technical prowess are behind the attacks.  This year ransomware has become more of an issue than ever before. The prevalence of kits that target known vulnerabilities in data-driven systems – known as “exploits” – is accelerating and simplifying cyber-attacks.

The risks to the average business are disruption, reputational harm, loss of confidential information, and the exposure of company secrets or proprietary data to the dark web. And you can’t trust the bad guys: they’ll release the data whether the ransom is paid or not.  There is no honor among thieves.

Further complicating matters, there is no way to ensure that the thieves will delete the stolen information once the ransom is paid. This means there is nothing to stop the criminals from returning to demand more money.

Recently, Krebs on Security published an article about ransomware gangs now turning to Facebook to hack accounts and place public ads to shame businesses and pressure victims into paying the ransom. This latest tactic is sure to become more prevalent as it exposes a brand to public perception to entice the victims into making the extortion payments.

AN OUNCE OF PREVENTION…

We have all heard that wise quote from Benjamin Franklin: “An ounce of prevention is worth a pound of cure.” This is truer today in cyberspace than it was in Ben’s day. While prevention is not inexpensive, preventing the damage that ransomware can do to your business will still save millions in lost business, lawsuits from data breaches, not paying a ransom, not hiring media consultants, and not spending years rebuilding your brand.

Here at Customers Bank, we take security seriously, not because we are federally required to but because it makes good business sense. Regardless of your organization’s size or complexity you should follow these simple rules to contain the risk malware presents to your organization.

1. Train your users – Malware starts with an employee clicking the wrong link in or sometimes just opening an email. Train your users to spot problematic emails and prevent phishing from becoming a threat by using anti-phishing technology and edge technology that catches bad links and attachments in email before they reach users.
2. Encrypt what matters most – Data that could harm your company, its reputation, or its ability to be productive should be encrypted. This way, even if infiltrated, all your attackers will have access to is already encrypted information. This is what is meant by “encryption at rest.” Containerization of critical data can also help ensure it is isolated.
3. Make backups a critical technology – Daily structured backups that are encrypted and stored outside of your infrastructure both physically and logically will make it possible to simply restore your data and not fall prey to ransom demands.
4. Invest in security – Either in-house or a skilled 3^rd party or even a mix of the two. Invest in security technology that can make anomalies visible and actionable, as well as people who can act on issues to prevent further damage and implement more proactive measures. This includes using EDRs (endpoint response) platforms to monitor individual computer and server activity, NACs (network access controllers) to prevent lateral movement of unauthorized software, and event correlation platforms to help improve infrastructure visibility and reduce the success rates for dormant malicious software. All of this goes beyond the traditional firewalls and signature-based anti-viruses suites of the past. Anti-ransomware software exists and is also a sound investment for larger organizations.
5. Find an insurance partner – Not just a policy…an insurance partner who understands cybersecurity, has resources to provide incident support, and can facilitate response is a worthy investment for any business that handles sensitive or proprietary information. And remember, the data of your employees is as sensitive as information about your customers.

BUT IT ALL STARTS WITH YOUR STAFF…

We cannot stress this enough – security is a company-wide concern, not a technical one. Every employee must be onboarded to understand their part in keeping an organization’s data and customers safe and secure. Security awareness training, internal discussion groups, preparedness exercises, and implementing a least-privilege or zero access program for role-based access are your organization’s greatest defense to malware.

Security is easy when everyone is a part. Stay vigilant.