By Joe Brannen | Georgia’s improved economy and long list of business, infrastructure and quality-of-life attributes fueled good banking performance throughout the state in 2015. And, the state’s banking industry in 2016 continues to offer families and companies strong choice and competition for their business.
Brannen. (Beckysteinphotography.com)
During 2015, Georgia’s banks hit several milestones of note. The total earnings of banks based in Georgia were up by 13.1 percent for the year. Total loans and total assets hit their highest levels since 2008, and deposits are at record levels.
The environment for borrowers remains extremely favorable, too. Even with the Federal Reserve’s small rate hike in December, overall interest rates remain extremely low. With high levels of deposits, overall good credit quality from borrowers and capital levels that are also strong, banks in Gwinnett County and around the state are eager for the right to earn your business. Now is a great time to borrow to fund business growth or family needs.
The landscape of banking in Gwinnett County has changed a lot during the past two decades and it remains an attractive place for our banks.
Today in Gwinnett County there are 34 FDIC insured banks doing business with 194 offices and $13.7 billion in deposits. That compares to 20 banks doing business here in 1995 in 100 offices and only $3.4 billion in local deposits. That’s quite a change.
So, locally, there’s an active group of lenders funding growth, and a strong group of community-minded bankers invested in the success of Gwinnett county businesses and families.
One major trend our banks are working with is how technology is changing how you do business with them.
In 2015 for the very first time, more people said they did a mobile banking transaction every week, than going into a bank branch.
We’ve got a lot of technology already embedded in what you use now to interact with your bank – online bill pay, various cash management services for businesses, and an evolving mobile device-based banking presence. And, there’s even more to come.
But with this technology comes a concern and priority for data security. Banks spend hundreds of millions of dollars a year to prevent cybercrime and it pays off.
Fewer than one in 1,000 online banking customers were affected by fraud in 2014. And, it’s likely you’ve gotten a new credit or debit card with a chip in it. That’s a fraud prevention tool. Card fraud is down almost 65 percent for those banks and card issuers that have converted their cards.
As a final thought on technology in banking, I have to say how proud I am of how Georgia has become such a huge hub for the international financial technology sector, including cyber security.
So, there are good things happening. As the economy has improved, I’ve sensed a renewed positive attitude and spirit of optimism from our member bankers and the businesses they support. For all those reasons, and many more, I am bullish on the future of our state, the future of banking in Georgia, and the value our industry provides to businesses and families.
Joe Brannen is president and CEO of the Georgia Bankers Association.
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