Texas bankers can earn their profits from a variety of sources, including mortgages, commercial loans, government bonds or student loans. Technological innovations also give the financial industry a way to drive their earnings, when other sectors are not as productive. Technological innovations were one of the key topics of the Annual Strategic Opportunities Conference of the Texas Bankers Association.
Innovation Keeps Banks Moving
Energy runs the world and thankfully Dallas has been quite blessed with plenty of these natural resources. This has spurned record home prices for the North Texas region. Unfortunately, from 2017 to 2018, the West Texas Intermediate (WTI) crude oil prices have started to wane.
What are the reasons? Some point to inadequate demand due to lingering effects from the 2008 Sub-Prime Mortgage Crisis. Others believe that supply is too high. In many ways, both of these factors are multiplying effects. If supply does not change due to falling demand, then an oil glut will ensue.
Already, there have been rumors of some energy firms struggling. There is not enough work for all of the drillers, rigging companies and refineries. The energy industry seems to be shifting away from being dominated by OPEC also.
NexBank Has Diversified Product Mix
Thankfully, the Texas bankers have been pro-active. They discussed “Reinventing Community Banking: Perspectives on Competing by Innovation” during the aforementioned banker panel discussion, led by NexBank CEO John Holt. By being pro-active, NexBank can adjust its financial product mix to deal with any downturn.
NexBank offers mortgages, commercial loans, educational financing and institutional services. While Texas does not want its energy sector to decline, the Texas bankers seem to be ready. NexBank can increase profits through innovation.