ISSUE THREE 2020
2020
BEST BANKS IN THE MID ATLANTIC ANNOUNCED A PUBLIC ATI O N O F A M E R I C AN B U S IN ES S M ED IA
Ion Bank in Meriden, CT
STORY 14 COVER BEST BANKS in the Mid Atlantic Banking Choice Awards Announced
12 DESIGN Clicks Without Bricks
Think Interactivity In A Touchless World
4 Letter from the
10 Technology
14 Cover Story
5 Marketing
12 Design
17 Services
Publisher
Banking Needs To Use Data In Its Marketing
8
Machine Learning Can Make You Stack Up
Think Interactivity In A Touchless World
See The Winners Of Our Best Bank Awards
Broader Customer Digital Offerings Are A Must
On the Move
Bankers Making Their Mark In The Mid Atlantic
bankingmidatlantic.com
CONTENTS
ISSUE THREE 2020
LE T T E R F RO M T H E P U B LIS H E R
Innovation Goes Viral
B
anks and credit unions across the region have been in full-on innovation mode now for months. If ever there was a time that tried an organization’s strategic planning committee, this is surely it. Redesigning branches, rethinking customer marketing, creating new employee plans, adding a huge new “plexiglass” line item to the budget, bolstering on-line app experiences are all a start. But then leaders also need to be looking at overall economic issues. What will the effects of the COVID-19 virus do to the small business base? Will an explosion of layoffs tank loan repayments? Does the VINCE VA LVO bank’s branch network now make sense? Will foreclosures spike as unemployment benefits dissipate? The banking community is often pilloried by those who rail against financial inequity. But community banks and credit unions are critical pillars of economic stability and aid in times of crises. And our communities are undoubtedly in crisis now. It’s important for consumers and businesses to see that their banking institutions are sound, that capital remains available, and that there are people willing to sit down and talk through finance with those who are fearful. So maybe, while bankers work diligently to keep their institutions relevant and safe, available and accessible, they should also take a moment to step back and think about all they are doing to help their neighbors, friends, colleagues and coworkers make it through this pandemic. While few take the time to thank their banker, they can thank their stars that their banker is there for them.
AND ONE SMALL NOTE
While appreciating the efforts of our community banks and CUs, we should also all take note of the herculean work our local Small Business Administration officials have done throughout the whole Paycheck Protection Program. The SBA processed more loans in one week than it usually does in a year, and local contacts were there with daily communications, personal help and even admission when they didn’t have clear news, simply by saying so. A multi-billion-dollar loan program rolled out in short order was going to have problems. Having our local SBA contacts help us through was a tremendous aid.
VINCENT M. VALVO Publisher & CEO
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STAFF
CEO, PUBLISHER & EDITOR Vincent M. Valvo ASSOCIATE PUBLISHER Beverly Bolnick MANAGING EDITOR Keith Griffin GRAPHIC DESIGN MANAGER Stacy Murray USER EXPERIENCE DESIGNER Billy Valvo INTERACTIVE DESIGN DIRECTOR Alison Valvo ONLINE CONTENT DIRECTOR Navindra Persaud MARKETING & EVENT ASSOCIATE Melissa Pianin ENGAGEMENT AND OUTREACH Andrew Berman
Submit your news to editorial@ambizmedia.com If you would like additional copies of Banking Mid Atlantic Call (860) 719-1991 or email info@ambizmedia.com
www.ambizmedia.com © 2020 American Business Media LLC All rights reserved. Banking Mid Atlantic magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: American Business Media LLC 345 North Main St., Suite 313 West Hartford, CT 06117
M A RK E T ING
Calling All Data-Driven Markets — Banking Needs You Take Action Now To Build Skills Around Understanding Data B Y RI CK HA L L, S P E C I A L TO B A N K I N G MI D AT L A N T I C
T
alk to any banker these days, and the topic of customer acquisition challenges is bound to come up. Growing and differentiating is more difficult than ever — especially with the current rate environment for deposits. Thinking strategically about this conundrum is tedious but crucial. Data-driven marketing is arguably one of the most critical functions banks need to be leveraging when it comes to new customer acquisition. According to the Boston Consulting Group, a majority of new bank customers said that a data-driven personalized approach was a major factor in their decision to move to that bank. In the past, banks could get away with using baseline demographic attributes for targeting prospects and relatively simple product analysis for cross-selling programs to existing customers. These demographics have also been used to measure the efficacy of those programs. But those days have passed, and bankers can no longer ignore the reality of the gig economy. In today’s digital-first world, bank marketers need
to use real-time tools to better understand detailed behaviors to form their acquisition strategies. In recent studies, many digital consumers view banks as simply a place to park money. Therefore, the concept of straightforward segmentation — used for years by bankers — has evolved. It has moved from a lifestyle grouping model that includes age, income, and homeownership to a behavioral grouping model that looks at elements such as online subscriptions, affinity affiliations, charitable interests, and virtual payment appetites. So, is this a “close up shop” moment? Not yet, but it is a serious threat to the future of many institutions. However, if you take a step back to understand what’s happening in financial culture, you would admit most of the future is out of your control. It’s time to figure out how you are going to catch the right part of the wave that banks can still own: data. Big data was a buzzword years ago that got a lot of attention, but it only went away in the headlines. No one has solved the underlying issues. Many have just viewed the problem as too big or complex, and Photo credt: iStockphoto/Shaxiaozi
ISSUE THREE 2020 | BANKING MID ATLANTIC 5
"It’s time to figure out how you are going to catch the right part of the wave that banks can still own: data." Photo credt: iStockphoto.com/Hilch
they pass it to another part of the organization or rely on a partner to figure it out. But as marketers, we should know more about customers, markets, and prospects than anyone else in the bank. And that knowledge can drive growth because we have access to behavioral data. When data is structured properly — cleaned, normalized, and analyzed — it gives modern bank marketers more insights than ever.
HOW TO USE DATA
Getting data in shape can be done. You just need to know what steps to take to harness it so you can gain the insights buried within. 1. Identify data sources and make fixes as needed. First, bank marketers need to figure out which data sources they need to analyze, identify the gaps in those data sources, and determine how to fill them. This is a key area where marketing and technology leaders need to build a working relationship. Marketing data progress cannot succeed without support from the technology side, which is charged with maintaining controls and mitigating fraud and risk. Many companies are beginning to understand they are partners in bringing value to their organizations. They bring together data for a clearer vision of customers, which leads to more personal relationships and a better understanding of what customers will need. 2. Get help building data strategy. Finding partners and tools will help you build your data strategy and gain buy-in from other parts of the institution. This is often where data initiatives get derailed. Once one line of business, such as commercial lending, hears about what you’re trying to do, that group then has a full suite of needs, requirements, and restrictions for what you can do with “its data.”
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3. Figure out the quality of your data. In reality, most core data is flawed because, over decades, processes have allowed manual data entry that no one has cleaned up. Many banks just decided to deploy data standards once the technology for platform automation was available and then archive old signature cards and other records in storage. 4. Develop a data culture. Help your organization develop a data culture and ensure the work done is scalable, iterative, and flexible. The first step is to define the customer segments you want to target. Then, determine their needs and what it will take to successfully address those markets. You need to understand the data that underlines the segment and why you’re focusing on it. Bank marketers should take action now to build skills around understanding data, how it works, who you can partner with, and how it can be used for your initiatives in 2020 and beyond. This is not a trend that will reverse itself. As the consumer market decides how it wants to do business with you, banks will be better positioned to create real value. We need to take this opportunity to reposition marketing in financial institutions as the center of fact-based initiatives that demonstrate what your customers want. Building strong banking relationships with customers means that you will still be serving them five to 10 years from now.
Rick Hall
Rick Hall is the managing director of the Banking and Financial Services practice at BKM Marketing.
Coronavirus.org
Artwork by Shepard Fairey | Amplifier.org
ISSUE THREE 2020 | BANKING MID ATLANTIC 7
MID TIC ATLAN
TRY TO KEEP UP
LOCAL PROFESSIONALS MAKING THEIR MARK IN MID ATLANTIC BANKING Customers Bank Names Andrew Bowman To Chair’s Office
Customers Bank announced it elevated Andrew Bowman, to senior executive vice president and a member of the Office of the Chair. In January, he was named chief credit Andrew Bowman officer, a role he continues to hold. As a member of the Office of the Chair, Bowman will expand his responsibilities to work directly with the bank’s leaders, including Jay Sidhu, chairman; Richard Ehst, president and CEO; and others to guide Customers Bank’s short- and long-term credit strategies. Prior to January, Bowman served as Customers Bank’s deputy chief credit officer and has more than 30 years of credit industry experience spanning large and small banks, as well as in non-traditional credit markets. “Andrew has proven to be a valuable asset and trusted advisor to our clients and the executive team,” said Sidhu. “I look forward to working more closely with Andrew in the future. His extensive market knowledge and broad credit experience will continue to be key differentiators that help us provide clients with the financial tools and resources they need to re-establish operations as the economy continues to reopen.” Bowman leads a team of more than 50 financial professionals involved in credit underwriting, loan work-out, collections, appraisals, environment orders and reviews. He also serves as the chairperson for the bank’s various loan committees and is a member of the bank’s ALCO, allowance for loan loss, enterprise risk management and executive management committees. Previously, Bowman served as the senior vice president and director of special loans at VIST Financial. During his career, Bowman has managed commercial loan portfolios ranging in value up to approximately $1 billion 8 ISSUE THREE 2020 | BANKING MID ATLANTIC
during some of the most turbulent market conditions.
Ali Mattera Named To 40 Under 40 Industry List
SB One Bank announced that Ali Mattera, senior vice president technology and digital bank officer, was named to Independent Banker’s 40 Under 40: Emerging Community Ali Mattera Bank Leaders list. Mattera, is one of four technology leaders highlighted for driving innovation in the community banking space. “We are thrilled that her hard work and efforts in leading innovation at SB One Bank, are being recognized,” said President and CEO, Anthony Labozzetta, SB One president and CEO. “Ali has been instrumental in leading our digital banking platform and has taken charge to embrace technologies that create efficiencies and enhance the relationship banking model that our organization prides itself upon.” Mattera guided SB One Bank through two acquisitions in the past two years without disruption and oversaw the development of a company-wide intranet. She provides policy advice to community organizations and state legislators on cybersecurity and privacy protection. “I am so honored to receive this recognition from Independent Banker, and I look forward to focusing on new ways to infuse innovation into our organization,” said Mattera. “I am particularly excited given the upcoming merger with Provident Bank to leverage innovation strategies to bring these banks and teams together.” Mattera joined SB One Bank in 2017 and is responsible for maintaining information technology, digital strategy and digital channels for the bank and its subsidiaries. She is primarily focused on accelerating innovation
throughout the organization, identifying disruptive threats to the bank’s business models and leading change management and strategic thought leadership. Additionally, she develops and implements business-enabling technology strategy.
Ephrata National Bank Hires AVP Mortgage Expert
Ephrata National Bank in Ephrata, Pennsylvania, announces the addition of Patty L. Heagy as assistant vice president mortgage expert. In this role, Heagy will be Patty L. Heagy responsible for prospecting new mortgage lending opportunities, the management of portfolio relationships and monitoring compliance with loan policies and appropriate regulations. Her career spans over 30 years in the real estate and banking industry, most recently as a bank executive officer and residential lender with Orrstown Bank.
TD Bank Names Fazio Head Of Small Business Specialists TD Bank named Jeff Fazio head of small business specialists, a new role created to lead the specialist team of approximately 100 employees throughout TD’s Maine-toJeff Fazio Florida footprint that focus on small businesses with revenues of $1 million and under. In this position, Fazio will oversee pipeline management, work with product teams on strategy and product enhancement and closely collaborate with the small business credit center to refine the lending process.
“Jeff’s track record of effective sales management and leadership in small business banking makes him an excellent fit for this position,” said Jay DesMarteau, head of commercial distribution, TD Bank. “We are confident that under Jeff’s leadership the team will continue to provide support to small businesses to help them succeed in both trying and good times.” Fazio brings 18 years of small business banking experience to the role. Prior, Fazio served as the small business division manager at Citibank where he worked with 36,000 small businesses and managed a portfolio of $20 billion in deposits and loans. Fazio is based in Mahwah, NJ, and will travel throughout TD’s footprint to meet with market-based teams.
York Traditions Hires Sposito As Strategic Revenue Officer
York Traditions Bank, in York, Pennsylvania, announced that Thomas J. Sposito II has joined its executive leadership team as strategic revenue officer. In this new role, Sposito serves Thomas J. Sposito as a resource for organic revenue generation, enterprisewide profitability, and balance sheet growth for the bank’s core and expanded markets. “Tom is a well-respected business and community leader with a genuine care for people,” noted President and CEO Eugene Draganosky. “His reputation and connections will help us acquire new clients and expand existing relationships, and his vast experience and knowledge will aid in the formulation of future strategic ventures.” Sposito is the current board chair of the Harrisburg Regional Chamber of Commerce and an advisory board member for the Penn State fundraising campaign. His banking career in the Harrisburg, Lancaster, and other central Pennsylvania markets has included leadership positions with Sterling Financial, PNC, Integrity and S&T. In May 2019, Sposito retired from S&T Bank as chief corporate development officer with direct responsibility for wealth management, private banking, public funds, and local market business development. Throughout his 35year career, he has held nearly every customer-facing leadership role such as market executive, chief banking officer, chief revenue officer, chief operating
officer, president, and CEO. In January, York Traditions Bank announced the organization’s first fullservice branch in Lancaster County. The original timeline has been temporarily delayed by COVID-19, but the doors at 1687 Oregon Pike will open next year. In addition to assisting the bank in developing strategic business relationships, Sposito will lead the efforts to recruit associates and advisory council members for the Lancaster region. “I have known Tom for decades and have the utmost respect for his values and many contributions to our industry,” remarked Michael Kochenour, Founder and Chairman. “He is a strategic thought leader with a proven track record and a sincere love for the community. He is the ideal cultural fit to help York Traditions Bank expand our relationship approach into new markets while staying true to our local vision and mission.” Sposito earned his finance degree from Penn State University and a Master of Business Administration from Lebanon Valley College.
Northfield Bank Announces EVP To Retire
Michael J. Widmer
Northfield Bank, the whollyowned subsidiary of Northfield Bancorp, Inc. announced that Michael J. Widmer, executive vice president of operations, informed the bank that he will retire
in October 2020. Widmer is a veteran banker with over 35 years of leadership experience in community banking. He joined Northfield Bank in 2002, as part of Northfield’s acquisition of Liberty Bank, where he served as executive vice president, chief financial officer, and director. “Michael’s leadership and dedication has been integral to the growth and success of our company over the past 18 years,” said Steven M. Klein, president and CEO of Northfield Bank. “His industry experience, extensive knowledge of banking operations, and commitment to his fellow employees, will be missed, and we wish him the very best.” Klein continued, “I’m pleased that Michael has agreed to delay his retirement through the conversion of systems related to our recent acquisition of Victory State Bank, which is scheduled
for mid-September. I look forward to working closely with him on the conversion and implementing our plan of transition for his responsibilities.” At Northfield, Widmer oversees operations of the company in a variety of areas including deposit operations, loan servicing, information technology, BSA compliance, security and property management. Widmer has a Bachelor of Science Degree in Accounting from Rutgers University and a MBA from St. John’s University.
Fidelity Announces Retirement Of Director Patrick J. Dempsey
Fidelity D & D Bancorp, Inc., the parent bank holding company of The Fidelity Deposit and Discount Bank, a Pennsylvania statechartered, FDICinsured community Patrick (“Pat”) J. Dempsey bank and trust company headquartered in Dunmore, Pennsylvania, announces the retirement of Patrick (“Pat”) J. Dempsey, chairman emeritus, as a director effective May 5, 2020. Dempsey served as director of the Fidelity Deposit & Discount Bank, a subsidiary of Fidelity D & D Bancorp, Inc.’s board of directors since 1985. He was named chairman of the Board in 2004 and served for 14 years. He also served as interim CEO and Interim President of Fidelity D & D Bancorp, Inc. from Sept. 1, 2009 to Dec. 2, 2010. He has been a member of the company board since 1999. “On behalf of the board of directors’ we want to thank Pat for his 35 years of committed service to the Company,” remarked Brian J. Cali, chairman of the board. “Pat’s relentless efforts as a Director and Chairman laid the foundation for the company’s current governance and organizational structure. The Fidelity organization wishes him a happy and deserving retirement for his contributions to our company and bank.” “During my tenure as President and CEO, Mr. Dempsey played an invaluable role in the success of the Company,” remarked Daniel J. Santaniello, Fidelity President & CEO. “I am very grateful to have had the opportunity to have worked alongside such an accomplished and thoughtful person.” ISSUE THREE 2020 | BANKING MID ATLANTIC 9
TECH TRENDS
I
Machine Learning Technology Stack for Banks
Willingness To Appreciate Nuances Will Serve Customers Best B Y A NK U R G A RG, S P E C I AL TO B A N K I N G MI D AT L A N T I C
mplementation of machine learning (ML) is often misunderstood. Yet, knowledge of a ML stack—the collection of technological tools and processes that facilitate the generation of data-derived insights—is vital. There are four key components of the ML stack: 1) Sourcing data; 2) Establishing a trusted zone or “single source of truth” (SSOT); 3) Establishing modeling environments; and 4) Provisioning model outputs or insights to downstream applications. “By understanding ML technology stack implementation, banks can leverage the benefits of data and generate programming that could transform their businesses, with early adopters more likely to see sustained success,” according to Raymond Chase, vice president for data analytics with Connecticut-based People’s United Bank. With experience in the industry spanning more than 30 years, Chase says he has seen many projects fail despite best intentions when the ML stack is not addressed. SOURCING DATA Data sourcing includes surveying accessible data types that are fed as inputs to the algorithm, as well as the processes and technologies needed to tap into sources. Examples of sources include core transactions, customerprovided information, the Internet, external databases, market research data, social media, and website traffic. Once sourced, data must be curated through an SSOT, a structuring of the data in a consistent place, and data lineage is established to ensure quality and trace impact downstream. Curated data from an SSOT can then be sourced by a modeling environment that is created to implement ML algorithms.
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THE TRUSTED ZONE It is important to prove data validity and quality throughout the chain of handling. Data must be aggregated, reconciled, and validated before being consumed for ML purposes. Key attributes of a trusted zone include: · A central repository of data, aggregated from multiple channels. · Clearly defined and documented data elements and data lineage. · Documentation of assumptions. For example, if a teller’s cash transaction is reported by the core system and reported by the teller transaction system, documentation must show which entry prevails and why it prevails. · Protocol for addressing unintended exceptions. For example, if there’s a localized glitch at the branch level for an ATM that is not able to report transactions on a certain date, there should be a way to account for missing transactions and to capture them when they’re available. · Daily reporting that matches and reconciles counts across systems. · Architecture that expands vertically and horizontally. · The data store that houses the trusted zone should have high availability and be resilient to failure. Lately, more data warehouses are hosted on Cloud. Cloud benefits include high availability, cost-effectiveness, and horizontal and vertical scaling. Another trend is increasing adoption of NoSQL databases such as MongoDB. These provide greater flexibility and better performance to store unstructured data, vis-a-vis relational databases. As with all things digital, regulation
and security of data are intensive. Data is more intimate today, and privacy and security regulations are more complicated. The data governance team should be part of any ML implementation. Having data lineage that tracks data sourcing is thus effective to ensure compliance. Data collected and held must be protected. Security and risk management teams must be involved to initiate and monitor best practices, and to develop security breach response. Investment in outsourced assistance is worthwhile for smaller institutions. If Cloud vendors are utilized, they must contractually agree that data security is their responsibility. Transmission of data from the premises to Cloud and from Cloud to premises must be part of the scope and should be carefully designed to address security risk. Data encryption before transmittal to Cloud, even when transmission occurs over a secured virtual private network, is valuable. ML MODELING ENVIRONMENT The objective is to facilitate creation of models that generate meaningful insights and placing insights in a way that passes model validation and audit requirements. There are three components: modeling infrastructure, development tools, and DevOps. Different options for ML modeling environments include: · Ready-to-use services, such as Amazon’s Polly and IBM’s Watson. · Automated ML, such as DataRobot. · ML Workbench, such as Amazon’s SageMaker. · Custom-/in-house-built ML
A current trend is the movement of modeling platforms to Cloud from in-house implementation of Apache Hadoop. Hadoop-based stacks could have high upfront costs and be complicated to maintain. Moving to Cloud offers benefits including minimal upfront capital investment and flexibility. As the needs for storage and computation change, it adapts seamlessly. Think of it as “pay as you go.” Most major Cloud providers also offer ML ready-to-use services and ML workbenches that could be utilized with minimal setup requirements. ML modeling environments should facilitate model validation and account for associated challenges. Models must be validated for bias, must be explainable, and must document parameter and method selection. Documentation must be detailed so that a third party could recreate the model without being provided source code. It is therefore important to standardize model development and validation processes. Assessing model risk is typically required before production. Regulatory guidelines require decision-makers to understand the intent for building these models, assumptions made, and limitations. Using a model outside the scope of its initial intent should be avoided. While ML is great at modeling complicated non-linear scenarios, it is less transparent than traditional models, making ML model validation challenging. For example, while using ML for creating a credit-risk model, one must be able to explain the outcome of negative credit decisions, which is required by law. This is an especially sensitive issue during the global pandemic. The selected model must have conceptual reasoning behind its development and construction. It is important to document why the model was selected, the math behind it, and the feature-selection process. Sourcing of features and data integrity are also
Photo credt: iStockphoto/Blue Planet Studio
modeling environments: All components of a modeling environment, programming tools, and DevOps tools are gathered, created, configured, and maintained by the institution.
essential and more easily accomplished with an SSOT. Special care should be taken when utilizing AutoML because it provides pre-cooked models that must pass for conceptual soundness. Model validation should be closely assessed when selecting any AutoML product. PROVISIONING INSIGHTS Delivery of insights is categorized as real-time delivery or batch. Real-time insights are required to be processed, generated, and delivered within short timeframes or near real-time. For example, detection of fraudulent transactions. Batch delivery is processed and generated in groups. Considerations for designing and hosting the compute tier for real-time models include request frequency and load. If this is unpredictable or highly variable, hosting the compute tier in Cloud is advisable. Creating a web service-based API layer dedicated to this compute tier is also wise. Real-time models should require registration to the API layer, which should enable applications to retrieve information on how to structure API requests and the expected structure
of output. ML models differ from traditional models in that they can be continuously trained. LEVERAGING DATA BENEFITS With today’s increased volume of big data, it is more difficult to generate insights using traditional analytics. The ability of the ML stack to significantly automate this process complements the growth of big data, especially when ML infrastructure is understood. What’s more, insight into the nuances regarding implementation of the ML stack will positively impact the ultimate follow through that the actual machine learning produces and improve the customer’s relationship with the institution. An unwillingness to appreciate these nuances and to be accountable to the ML stack, consequently, will compromise the machine learning’s intended impact on the end user, the customer.
Ankur Garg
Ankur Garg is a full stack data science expert working as Enterprise Data Analytics Architect at People’s United Bank. ISSUE THREE 2020 | BANKING MID ATLANTIC 11
DE S I G N
Clicks Without Bricks? We Don’t Think So!
Now Is The Time To Evaluate Your Branches And Make Changes B Y JA ME S G . CA L I E NDO, S P E C I AL TO B A N K I N G MI D AT L A N T I C
A
s the COVID-19 pandemic continues to spread throughout the country, people, communities, and industries are being forced to adopt new habits. Our normal routines have been flipped upside down as we scramble to develop new business methods, refine best practices, and adapt to a new way of life. Even through the turmoil, we find ourselves in a time of great opportunity. New trends are emerging quickly, while a few existing ones surged as a direct result of the “new normal.” One of the most impactful trends that continues to gain momentum is the use of technology in banking. Several months ago, the nation shut down. People were confined to their homes, and financial institutions were left scrambling to service customers without the use of a lobby. Although many banks started down the road of online and mobile banking and online account opening, no one could have realized the extremes to which customers would be pushed to adapt. While it is not clear what the lasting effects of the pandemic will be, we do know that technology will continue to rise, and the need to seamlessly blend technology with human touch within brick and mortar is 12 ISSUE THREE 2020 | BANKING MID ATLANTIC
stronger than ever. Technology will never replace people and brick and mortar – it will instead transform and reimagine the way that we use it. Banking involves the full overall experience, not just routine transactions. As bank lobbies continue to reopen, customers are going to be looking for advice, education, and the confidence and trust that only human interaction can provide. Throughout these interactions, technology will be the vital tool used to enhance the overall customer experience. Are your branches ready? Do they address the expectations that are transforming the way people are interacting with you? If your branches are still designed with a focus on face-to-face teller transactions, now is the time to evaluate your branch network and make some changes. Here are several technologies you can implement today to optimize your retail branch network and better align with your customer’s expectations. INTERACTIVE KIOSKS AND IPAD INTEGRATION In an age where touchscreens and tablets have become a staple of everyday life, the opportunity to integrate them into your branch is vital to serve the needs of the nextgen banker. Interactive kiosks and iPads not only reduce
costs while improving efficiency, but they also enhance customer service, augment education, and boost sales. We’ve seen a proven uptake in online and mobile banking enrollment when staff personally walk customers through individualized demonstrations via the kiosk and iPad. Adding the capability of printing paper brochures or information from the kiosk multiplies its effectiveness while increasing educational opportunities. DIGITAL MARKETING SCREENS Today’s consumer is always on the go. You need a digital solution that can stand out and grab their attention quickly, while making a serious impact. Strategically placed digital marketing signage has been proven to capture your audience and leave a lasting impression on both your brand and your product offerings. Take advantage of downtime at teller lines and drive-thrus, and drive your messaging quickly and effectively, while creating a memorable experience. VIDEO CONFERENCING COVID-19 has made video conferencing a household name. It became crucial for its ability to bring people together from around the globe who could not be together face to face. During the pandemic, video conferencing became a
way of communicating and interacting with colleagues, staff members and consumers. It continues to play a vital role not only as the pandemic lingers on, but as many companies work to improve communications, reduce travel costs, and develop stronger relationships with individuals they many never actually meet in person. Don’t be stuck in the past. This is the perfect opportunity to future-proof your branch for the next-gen banking customer and embrace the new normal. Seamlessly blending the convenience of technology with the branding power of brick and mortar – that’s what “clicks and bricks” is all about.
James G. Caliendo
James G. Caliendo is a former bank executive and now president and CEO at the 110-year-old design-build and retail services firm PWCampbell. In the past 18 years, under his direction, PWCampbell has worked with over 500 financial institutions influencing millions of square feet of retail and operational space to create scalable solutions for every sized facility project. ISSUE THREE 2020 | BANKING MID ATLANTIC 13
COV E R STORY
The BEST Banks
In The Mid Atlantic Region
A
Our Annual Survey Shows What Customers Think The Top Banks Are
nnually, the prestigious Banking Choice Awards are presented by American Business Media, publishers of “Banking Mid Atlantic,” and Rivel Banking Benchmarks. Vincent M. Valvo, president and CEO of American Business Media, said, “Customers can choose to bank wherever they want. The Banking Choice Awards determine which banks do it best.” The Banking Choice Awards are based upon the results of the Rivel Banking Benchmarks, the largest and most comprehensive measure of banking customer experience in the world. The benchmarks are conducted independent of any financial institution biannually by Rivel (www.rivel.com), the marketing and investment community research firm and pioneer in the online measurement and tracking of customer experience for banking institutions. Bruce Paul, Rivel’s managing director, said, “The Rivel Banking Benchmarks, part of our CXLign division, help banks increase revenue by giving them a clear, objective view of what their customers really think of them. We eliminate the bias of internal bank surveys in which happy customers are five times more likely to respond than unhappy or ambivalent ones, thus creating skewed (and unrealistic) results. We put your ratings in context, showing the banks exactly how their scores compare to those of their competitors within their local trade area – not to an irrelevant basket of similar-sized banks from other parts of the country.”
American banks. The Benchmarks use the same bestin-class approach used to build the CX programs for the world’s largest banks, now provided to community banks at a small fraction of the cost. “We strongly believe that customer loyalty is a bank’s primary asset. To improve that loyalty, you must measure and track it. The Benchmarks therefore enable banks to understand exactly what their customers and prospects think of them, their people, their channels, and their products so banks can make customer-centric decisions to grow their business,” added Paul. In the Mid Atlantic region, 10,812 interviews were conducted in New Jersey for a total of 282,707 reviews with 238 institutions represented. In Pennsylvania, 17,288 interviews were completed for a total of 415,002 reviews covering 463 institutions. Survey respondents are part of a statistically representative sample of households and businesses in each state. The total respondent pool is representative by geography, gender, income, ethnicity, and age profile of the state, based upon the most recent government census. Given the large sample size, the results are also representative of household penetration and business penetration of each banking institution within each state. The survey is double blind: respondents are not told the subject of the interview beforehand, and we do not know which banks they use before initiating the interview. This approach minimizes bias and provides the most objective results possible. The Customer Experience Benchmarks ask respondents to evaluate up to 53 different metrics ‘We eliminate the bias of internal bank surveys in about each institution they use for which happy customers are five times more likely to banking services. These include respond than unhappy or ambivalent ones, thus creating the following metrics used for the skewed (and unrealistic) results.’ Banking Choice Awards: overall quality, customer service, tools & technology. The Rivel Banking Benchmarks were developed by The Prospect Brand Benchmarks ask respondents Paul, one of the most respected experts in banking about their impressions of banks they do not yet use. research who developed the CX tracking and brand These marketing and brand metrics include community research programs for seven of the top 15 North contribution, measured in the Banking Choice Awards.
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In the Mid Atlantic region, 17,147 interviews were conducted for a total of 195,552 reviews with 580 institutions represented. OVERALL QUALITY Gateway, NJ Blue Foundry Bank Atlantic Stewardship Bank Columbia Bank Kearny Bank Bank of New Jersey Northern, NJ ConnectOne Bank SB One Bank Peapack Gladstone Bank First Hope Bank Lakeland Bank Central, NJ Haddon Savings Bank Two River Community Bank Somerset Savings Bank Unity Bank Magyar Bank Southern, NJ Republic Bank Crest Savings Bank Haddon Savings Bank Cornerstone Bank First Colonial Community Bank Western PA First United National Bank Elderton State Bank InFirst Bank Marquette Savings Bank Somerset Trust Company Southeast, PA New Tripoli Bank The Philadelphia Trust Company QNB Bank Riverview Bank Embassy Bank of the Lehigh Valley Northeast, PA PS Bank The Honesdale National Bank Jim Thorpe Neighborhood Bank The Luzerne Bank First Northern Bank and Trust
North Central, PA First Keystone Community Bank The North Umberland National Bank First Citizens Community Bank Woodlands Bank First Columbia Bank & Trust
Southern, NJ 1st Bank of Sea Isle City Sturdy Savings Bank Crest Savings Bank The Pennsville National Bank Monroe Savings Bank
South Central, PA MCS Bank Pennian Bank Ephrata National Bank Kish Bank PeoplesBank
Western, PA Clarion County Community Bank Marquette Savings Bank InFirst Bank First Federal Of Greene County Marion Center Bank
Central, PA Somerset Trust Company CNB Bank Community State Bank of Orbisonia Pencrest Bank Altoona First Savings
Southeast, PA First National Bank & Trust Of Newtown Penn Community Bank The Philadelphia Trust Company New Tripoli Bank Harleysville Bank
COMMUNITY CONTRIBUTION
Northeast, PA Jim Thorpe Neighborhood Bank Mauch Chunk Trust Company The Dime Bank The Luzerne Bank PS Bank
Gateway, NJ BCB Community Bank Schuyler Savings Bank Atlantic Stewardship Bank Valley National Bank Blue Foundry Bank Northern, NJ Atlantic Stewardship Bank Millington Bank First Hope Bank Roselle Bank Glen Rock Savings Bank Central, NJ Bank of Princeton Two River Community Bank Manasquan Bank Freehold Savings Bank OceanFirst bank
North Central, PA The Northumberland National Bank Mifflinburg Bank and Trust Woodlands Bank Susquehanna Community Bank First Columbia Bank & Trust South Central, PA Pennian Bank Kish Bank The Bank of Landisburg The Juniata Valley Bank York Traditions Bank Central, PA Hometown Bank of Pennsylvania Altoona First Savings Investment Savings Bank Ameriserv Financial Bank 1st Summit Bank
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S E RV I C E S
COVID-19 Accelerates Need For Banks To Broaden Digital Business Banking Services
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A Great Experience Is More Important Than Ever B Y E D D I E DAV I S, S P E C I AL TO B A N K I N G MI D AT L A N T I C
dvances in technology and communications have led to unprecedented disruption for banks in recent years. Even so, few industries have shown their ability to quickly adapt when necessary. With many small businesses eager to secure a financial lifeline via the government’s Paycheck Protection Program, many community banks scrambled to quickly make online applications for the loans available. Even banks that didn’t already offer online applications for lines of credit, term loans or other lending products made the PPP application available, giving borrowers a faster way to apply for the funds while complying with social distancing restrictions. Despite the challenges involved in the transition, community banks succeeded, enabling their business customers to file for the government-backed loan at a time when they needed it the most. This shift to a paperless and more immediate method for handling PPP loan applications puts pressure on banks to continue this transition across all of their business lending offerings. The coronavirus outbreak has added urgency to this shift, because small businesses that applied for a PPP loan electronically are expecting they will be able to file their loan forgiveness application with their lender the same way. TECH IN FINANCE AN ACCELERATING TREND Gen-X business owners and, increasingly, entrepreneurs from the far larger and even more tech-savvy Millennial generation have grown accustomed to the convenience of digital consumer banking and financial services, and now expect it when it comes to their small business banking. Expectations of digital business banking stem from the explosion of financial services innovation that fintech companies kicked off more than a decade ago. This disruption isn’t likely to abate anytime soon, which puts pressure on financial institutions large and small to keep up. But community banks have a distinct advantage
when it comes to making such changes, because they can make decisions much faster than larger banks. As an executive at a fintech company that, among other things, uses technology to streamline the business financing application and review process, I’ve seen how quickly banks can transform by adopting technology to improve established practices in lending and beyond. The coronavirus pandemic has helped speed up the digital transformation in banking. Community banks with the digital infrastructure in place to more quickly process small business clients’ applications under the PPP have been able to better serve their clients at a time when a delay of even a day or two could make the difference between their customer getting access to funds or ending up empty-handed.
Photo credit: iStockphoto/Ridofranz
FINTECH PARTNERSHIPS A number of big technology companies and alternative lenders have emerged as big players in lending, and in facilitating businessto-business payments and funds transfers in recent years. Even major wireless carriers now offer
banking services. Most banks do not have a core competency in software development, and it would be cost-prohibitive to develop one. However, there are great ways to team up with Fintech firms that specialize in tools that can be offered in partnership. This way, banks can leverage the technology to clear the obstacles that they’ve faced when extending small business loans, including documentation, compliance, cost and underwriting. In the process, they can broaden access to financing for their customers, without going all-in on big infrastructure changes. FINTECH MORE THAN JUST BANKING Another area that’s undergoing a tech-makeover is digital payments. Some financial services companies are enabling small businesses to make payments via email by tapping their existing credit cards, even if the recipient doesn’t ISSUE THREE 2020 | BANKING MID ATLANTIC 17
have an existing merchant account. This payment method essentially frees up business’ cash and makes it possible for them to cover expenses that would not otherwise be payable with credit. Ask yourself, how valuable would such a service be for your struggling small business clients right now? ADAPTING TO THE PANDEMIC People and institutions are often called upon to adapt quickly in times of duress and uncertainty. We’re seeing it with businesses across America that are having to learn new ways to serve their customers while adapting to the restrictions aimed at slowing the outbreak. Community banks are no exception. Forward-thinking banks that saw the importance of speeding up the loan application process to give their clients a fighting chance of getting a slice of the PPP loans did so through partnerships with digital platforms. Now that the loan program is over, community banks should be thinking of ways they can more quickly process what is expected to be a crush of loan forgiveness requests from businesses that were approved for a PPP loan. NOBODY PLANNED FOR LOAN FORGIVENESS Sorting the requests for forgiveness is going to present banks with a big challenge, as they’ll have to ensure
that borrowers have been able to present supporting documentation to back up how their loan funds were used. Because the standards for documentation, collection and submission of the paperwork needed for businesses to get their loan forgiven are continually changing, banks need an adaptable solution. Here’s another area where outsourcing this process to a Fintech company can help streamline the process for borrowers and banks alike. The need to rely on technology to solve an issue like loan forgiveness is another example of why making the transition toward a cloud-based, digital banking model can pay off in the long-run. Keeping up with technological changes is like firing at a moving target, but one that community banks need to keep working to hit consistently in an ever-competitive marketplace where customer engagement, convenience and immediacy are crucial to maintain a competitive edge. A great digital experience is more important than ever.
Eddie David
Eddie Davis is the SVP of sales & operations for FINSYNC, a consolidated cash flow management platform.
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Now with coverage across New Jersey, Pennsylvania and Delaware, bankers across the region turn to our magazine, Banking Mid Atlantic, for essential news, information, and analysis in an evolving marketplace. As a source for thought leadership in the banking industry throughout the mid atlantic, banking executives and managers rely on the magazine for vital information on how to better serve their customers, efficiently run their institutions, and adapt in a transforming industry. Advertising in Banking Mid Atlantic will give your brand a significant advantage within a competitive market and increase your exposure among thousands of companies that serve the banking industry. Position your message in front of 400+ financial institutions and over 8,000 industry professionals – 90% of whom are executives, vice presidents, and department managers.
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Ion Bank in Meriden, CT
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