Smart money starts here: A Q&A with NDSU’s director of the Center for Banking and Finance
Navigating your financial journey can be overwhelming. Mark Jensen, director of the NDSU Center for Banking and Finance, breaks down what matters most and highlights smart strategies for success.
What’s changed about money and banking that people can’t afford to ignore?
Banking has become more complex, largely due to advances in technology, but at their core, banks still do three main things: lend money, take care of money and move money around.
In today’s financial landscape, the sheer number of choices can be overwhelming. Having a basic understanding of money management and then working with someone who can provide good advice can help you cut through the noise and make better decisions.
What should people be looking for when choosing a bank or financial partner?
North Dakota has the most banks per capita of any state in the US, and each one operates just a little differently. With so many options, you can decide which factors are the most important. Is it their locations or operating hours? Treats in the lobby for you or your pet? High rates on CDs and low rates on loans? All of these can be important, but let me suggest three questions to ask:
1. People: Are they responsive, helpful and easy to work with?
2. Technology: Does their online and mobile banking actually make your life easier?
3. Fit: Do their services align with your personal or business needs?
What’s one tip that would help people make better decisions with their money?
You can’t make good financial decisions if you don’t know your own numbers. A simple
budget and intentional plan can change that quickly. Whether you use a budgeting app or
just a good old-fashioned spreadsheet, the goal is to understand where your money is
going. Or, if you’re comfortable, try uploading a sample of your transactions into an AI engine that you trust and ask it for insights into your spending patterns.
What’s one simple concept about money that can change how people make decisions?
Interest is either working for you or against you. In its simplest definition, interest is just the cost of renting money. Banks take deposits, pay interest to their customers and lend those
funds out at a higher rate to account for costs and risk. Understanding that simple concept
can change how you think about saving, borrowing, and investing. Use debt carefully to
limit your interest costs, and know that even a small cash balance could be safely earning interest for you.
How do banks decide whether someone qualifies for a loan, and what can people
do to strengthen their chances?
The most important decision factors for any loan are related to whether the bank can be confident that they’ll be paid back. The two biggest indicators are:
1. Your credit score: Try to reach 720 or higher and keep it there by paying your bills on time and closing any accounts you aren’t using
2. Your income compared to your debts: Try to keep your monthly debt payments at no more than 40% of your gross income
How do you see AI impacting the banking industry over the next few years?
AI is a tool that will reshape how work gets done, and it is already making banks more efficient. That trend will continue, but it’s more about augmentation than replacement. As
certain roles become more automated, new ones are emerging, especially in areas that combine technology, data and customer experience. The bigger question isn’t whether jobs will disappear, but how we’re preparing people for the new roles being created.
Why is banking education evolving and who benefits from that change?
Banking education is evolving because the banking industry is changing. Although the
fundamentals have remained relatively stable, the way they are applied is constantly evolving. As the industry changes, there’s a growing need for people who understand both the fundamentals and the modern tools — benefiting students, employers, and communities alike.
How will NDSU’s Center for Banking and Finance make a difference?
We’re focused on building stronger connections between students and the banking industry. We’re also working closely with industry partners to ensure that students are prepared for what employers actually need today and in the future.
Our goal is to connect students with real opportunities in a changing industry.
As baking continues to evolve so does the need for practical, real-world financial understanding. NDSU’s Center for Banking and Finance prepares students through hands-on experiences, industry connections, and financial skill-building.