A Hidden Secret. BOLI can pay for your cyber security costs and muni bond analytics.

This is Kelly Coughlin. There is a little known secret about how to use your bank owned life insurance asset to pay your cyber security costs, muni bond analytics expenses and other risk and insurance expenses. Listen to this two-minute audio podcast and then call me if you it gets your attention. Two minutes could generate thousands of dollars in expense reductions for your bank.

Kelly Coughlin is a CPA and CEO of BankBosun, a management consulting firm helping bank C Level Officers navigate risk and discover reward. He is the host of the syndicated audio podcast, BankBosun.com. Kelly brings over 25 years of experience with companies like PWC, Lloyds Bank, and Merrill Lynch. On the podcast Kelly interviews key executives in the banking ecosystem to provide bank C suite officers, risk management, technology, and investment ideas and solutions to help them navigate risks and discover rewards. And now your host, Kelly Coughlin.

Greetings, my name is Kelly Coughlin. I’m a CPA and the CEO of BankBosun, a risk management company located in Minneapolis, MN. We are writing a research report for publication in a banking journal this coming October comparing the use of bank owned life insurance (BOLI) in two US regions: the Midwest and the Northeast. The data shows there is a significant variance between these two regions and we are trying to dig into it a bit to understand and explain it. The major distinction is some banks tend to use the asset more as an investment that competes with other balance sheet financial assets like municipal bonds for example, others tend to use it a more of a risk management funding tool for their nonqualified benefit plans or benefit plans in general. Some even tend to look at it more as a commercial loan...a loan to a AA credit insurance company.

Some banks end up with it on their books through an acquisition and are stuck with it…others look at it as a terrific asset that they can’t get enough of… some like the Other Non-Interest Income classification versus interest income. Some don’t care about that. So far I have talked to about 50 bankers personally. And I really have enjoyed it. I have learned a lot. And I want to talk to about a hundred more.

I have a handful of other related questions that will only take a couple minutes. We will be sending you a copy of the report no charge of course so you can see how your peers in the northeast and Midwest are using this non-traditional asset.

Additionally, I also wanted to point out we have a risk management program that allows you to utilize your BOLI insurance asset to pay for some of your cyber security risk expenses, muni bond analytics and other risk management expenses the bank has. You keep the insurance policy and investment terms in place, but you modify the servicing and reporting terms. Not only does this cost you nothing, you actually reduce your expenses and increase profits by thousands of dollars.. potentially.

Frankly, the only one who kind of loses in the deal is your agent that is “servicing” your BOLI now. So if you want to first and foremost take care of him/her, fine. No worries. I understand that. But if you feel it is more important to take care of the bank and more specifically, the bank’s financial statements, then you might want to talk to me about this. It can be done fairly easily. And our servicing and quarterly and annual board and regulatory reporting is best in the business…so you actually get a win there.

Again, my name is Kelly Coughlin. I’m a CPA and the CEO of BankBosun. I can be contacted at 612-232-6640. My email address is: [email protected]

Thank a lot, goodbye.

We want to thank you for listening to the syndicated audio program, BankBosun.com The audio content is produced and syndicated by Seth Greene, Market Domination;  with the help of Kevin Boyle. Video content is produced by The Guildmaster Studio, Keenan Bobson Boyle.