BANKING ISSUE ONE 2020
NEW ENGLAND T H E R ES O U R C E F O R N E W E N G L A N D ’S F I N A N C I A L L E A D E R S
ING INCLUD TURE THE FU
NKING OF BA
E M GUID A R G O PR E 24 G SEE PA
BRANCHES How They’ll Look in 2025
BEST & BRIGHTEST
Future Banking Leaders
A P UBLICAT I O N O F A M E R I C AN B U S IN ES S M ED IA A PUBLI C ATI O N O F A M E R IC A N B U S IN ES S M ED IA
CONSUMERS
Meeting The Needs of the Aging
Successful Branch Transformation with Magner Products
Increases Your Opportunities for Higher Customer Satisfaction and Loyalty Currency Counters Coin Counter/Sorters Coin Counter/Packagers
Currency Dispensers
Digital Marketing with Direct Interface
Choice of Self-Service Coin Centers WiFi Communications Available
Choice of Currency Recyclers DEC Technology Dedicated External Cassette
“We don’t do everything. We only do what we do well.”
Schedule the Magner Solution Center for an educational hands-on discussion. Allow us to bring our branch transformation tools directly to your team of decision makers.
STEP INSIDE!
Contact a Magee Consultant Today Tim Conklin · 800-347-1414 ext. 336 · tconklin@mageecompany.com www.magner.com
A FAMILY-OWNED AMERICAN COMPANY FOR OVER 55 YEARS. Form MC719 – © 2019 Magner Corporation
A P U B L I C AT I O N O F AM ER I C AN B U SI N ESS M E D I A
CONTENTS
THE FUTURE OF BANKING
SPECIAL CONFERENCE COVERAGE
BankWorld kicks off January 16 and 17th in Uncasville, Connecticut. This issue includes what topics bankers are talking about in the industry and some solutions to help bring your bank to the next level.
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PAGE
24
COVER STORY:
THE BRANCH IN 2025
26 27
BankWorld Agenda Explore the roster of interesting speakers and panels
BankWorld Exhibitors Visit and learn about the industry’s best and latest offerings BankWorld Sponsors
4
20
36
42
5
What your customers think about the tech you offer broken down by gender, age and income
The Women of FIRE Awards Celebration
Highlights from the 2019 New England Women in Banking conference
Statistics
Setting the right framework for leverage ratios
8
New Leaders In Banking
A look at the 2020 winners of the New Leaders in Banking Awards.
Technology
28
Crystal Ball
How numbers will shape branch design in 2025
31
Special Customers Serving customers with mental health issues
33
Personnel
The future teller: Part human? Part robot?
Accolades
38
Customer Service
This generation of customers is worried and dissatisfied
40
Did You See?
Highlights from the weekly Banking in New England newsletter
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PAGE
Letter from the Publisher
Leadership
44
On the Move
Following the changing careers of your colleagues across the region
46
Survey Says
The perks your employees find most appealing
BankWorld Agenda
PAGE
33
The Digital Teller?
Issue One | January 2020 | BANKING NEW ENGLAND 3
LE T T E R F RO M T H E P U B LIS HER
I
Face Front On Your Financial Tech
love technology, except when I hate it. There’s no question that the Internet has reshaped the world. And a decade ago when cloud-based applications first arrived, so many of us thought this was an insane idea – only to watch it become the dominant method of computing and data storage. Then the iPhone revolutionized mobile “communications,” changing a phone into a way to connect to everything, in almost every way. Bruce Paul, president of Customer Experience Solutions, has a fascinating article in this issue, looking at just how critical tech is to banking, and to consumers’ expectations of their banks. If any banking executive wonders whether their investments in resources are well placed by going to IT rather than to sales VINCE VA LVO or finance, it’s an eye-opening read. Or perhaps bank executives are just like you and me. Because my goal is to never see my banker again. I check my balances on my phone (or PC), transfer money on my phone, download my statements on my computer, and connect my accounts to my investments, monthly bills, credit cards and more. Every bill I can pay online, I do so. I don’t want to have to send out checks, and I don’t want to have to go into a branch to do my banking. If a bank or credit union can’t offer me a wide swath of tech convenience, I don’t want them to be my financial institution. End of story.
A HUMAN FACE
Or is it? Sometimes, technology betrays me. A new phone that I haven’t set up right. Or the wifi is acting up and I can’t access my accounts. Or I just got stupid and can’t remember my password, and my spam blocker is doing too good a job on the “reset password” email from my institution. That’s when I need a human being to be in the game with me. And, of course, the first line of scrimmage is the teller line. What I don’t want is to find out that those folks don’t know anything about the game. The days when a teller’s main job was to take deposits or pay withdrawals is past. That teller needs to be great at those tasks, but also has to be someone who can help me with my tech issues – getting me better situated with my online account, and maybe with third party apps like Venmo that have become critical add-ons. The good news for bankers looking to increase business is that when a teller is knowledgeable and helpful on that tech issue, I’m also going to be highly susceptible to helpful suggestions from them about whether I might want to talk to someone about a home equity line, or an investment vehicle, or a credit card. It’s a lesson that a lot of banks are realizing, and you’ll find an intriguing piece on it elsewhere in this magazine. It’s not tech or touch. It’s tech and touch. Do both, and it’s not going to be a love/ hate relationship – with either technology or with your bank.
STAFF
CEO, PUBLISHER & EDITOR Vincent M. Valvo ASSOCIATE PUBLISHER Beverly Bolnick MANAGING EDITOR Keith Griffin GRAPHIC DESIGN MANAGER Stacy Murray INTERACTIVE DESIGN DIRECTOR Alison Valvo ONLINE CONTENT DIRECTOR Navindra Persaud OPERATIONS MANAGER Kurt Schenher MARKETING & EVENT ASSOCIATE Melissa Pianin
Submit your news to editorial@ambizmedia.com If you would like additional copies of Banking New England Call (860) 719-1991 or email kschenher@ambizmedia.com
Cover photo: SDI Productions
www.ambizmedia.com ©2019 American Business Media LLC All rights reserved. Banking New England 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
VINC E N T M. VALVO
Publisher & Editor
4 BANKING NEW ENGLAND | Issue One | January 2020
345 North Main St., Suite 313 West Hartford, CT 06117
B Y JE FF CA RD O NE, S P E C I AL TO B A N K I N G N E W E N GL A N D
STAT ISTICS
The Community Bank Leverage Ratio Capital Framework – Does It Make Sense For Your Bank?
O Jeff Cardone
n Oct. 29, 2019, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (the federal agencies) adopted a final rule that creates a new community bank leverage ratio (CBLR) framework, as required by the 2018 regulatory reform law known as the Economic Growth, Regulatory Relief and Consumer Protection Act. The CBLR framework is designed to simplify the regulatory capital requirements for eligible community banks and holding companies that elect to opt therein. Under the final rule, a depository institution or holding company that satisfies certain qualifying criteria, including having less than $10 billion in average total consolidated assets and a leverage ratio of greater than 9 percent, would be considered a “qualifying community banking organization” and may elect (but is not required) to use the CBLR framework. If this election is made, the qualifying community banking organization would be considered to have satisfied the federal agencies’ generally applicable risk-weighted and leverage capital requirements under the existing regulatory capital framework (the Basel III capital framework) and be well-capitalized under the federal agencies’
Issue One | January 2020 | BANKING NEW ENGLAND 5
prompt corrective action (PCA) rules. The final rule will be effective as of Jan. 1, 2020 and qualifying community banking organizations can use the CBLR framework in completing their Call Report or Form FR Y-9C, as applicable, for the first quarter of 2020.
SUMMARY OF THE FINAL RULE Who is a Qualifying Community Banking Organization? A qualifying community banking organization is a bank or bank holding company that satisfies the following qualifying criteria: (1) has a CBLR greater than 9 percent; (2) has average total consolidated assets of less than $10 billion; (3) has total off-balance sheet exposures of 25 percent or less of total consolidated assets; (4) has total trading assets and trading liabilities of 5 percent or less of total consolidated assets; and (5) is not an advanced approaches banking organization, as defined by the federal agencies (which is generally defined as a firm with at least $250 billion in total consolidated assets or at least $10 billion in total on-balance sheet foreign exposure, and depository institution subsidiaries of those firms). The federal agencies have the authority to disallow a banking organization to use the CBLR framework based on its risk profile, even if the qualifying criteria above are satisfied. How Does a Qualifying Community Banking Organization Calculate the CBLR? The CBLR is the ratio of the qualifying community banking organization’s existing measure of tier 1 capital (as calculated under the Basel III capital framework) to its average total consolidated assets. The federal agencies noted that using tier 1 capital as the numerator aligns the calculation of the CBLR with the existing leverage ratio under the Basel III capital framework, a calculation methodology that community banks are already familiar. The denominator of the CBLR, average total consolidated assets, would be calculated in accordance with the banking organization’s Call Report or Form Y-9C instructions, as applicable, less the items deducted in the calculation of tier 1 capital. How Would a Qualifying Community Banking Organization Elect to Use the CBLR Framework? A qualifying community banking organization with a CBLR greater than 9 percent (measured at the time of election) may elect to use the CBLR framework at any time. The election would be made by completing the associated line items that are required in the
organization’s Call Report or Form Y-9C, as applicable. A qualifying community banking organization becomes subject to the CBLR framework upon making the election. May a CBLR Banking Organization Opt Out of the CBLR Framework? A CBLR banking organization may opt out of the CBLR framework by completing the associated reporting items that are required in the organization’s Call Report or Form Y-9C, as applicable. A CBLR banking organization can also opt out of the CBLR framework between reporting periods by providing its Basel III capital ratios to its appropriate regulators at the time of opting out. What are the Implications of Electing to Use the CBLR Framework? A qualifying community banking organization that elects to use the CBLR framework will be considered to have met the capital requirements under the Basel III capital framework and to be well-capitalized under the federal agencies’ PCA rules. However, to be considered well capitalized under the CBLR framework, the banking organization must not be subject to any written agreement, order, capital directive or PCA directive to meet and maintain a specific capital level for any capital measure (even if the CBLR is greater than 9 percent), which is consistent with applicable federal agency rules. What Happens if CBLR Banking Organization Fails to Satisfy the Qualifying Criteria? If a CBLR banking organization fails to satisfy one or more of the qualifying criteria after opting into the CBLR framework, including the failure to maintain a CBLR greater than 9 percent (unless utilizing the two-quarter grace period discussed below), the banking organization will no longer be allowed to remain in the CBLR framework and must comply with and report under the Basel III capital framework for the quarter in which the qualifying criteria is no longer satisfied. The final rule would allow a CBLR banking organization to continue to use the CBLR framework and be considered well-capitalized for a grace period of up to two quarters so long as its CBLR ratio is greater than 8 percent. The grace period would begin at the end of the quarter during which the CBLR banking organization fails to satisfy any one of the qualifying criteria. If the CBLR banking organization can return to compliance with all qualifying criteria during the grace period,
A QUALIFYING COMMUNITY BANKING ORGANIZATION WITH A CBLR GREATER THAN 9 PERCENT (MEASURED AT THE TIME OF ELECTION) MAY ELECT TO USE THE CBLR FRAMEWORK AT ANY TIME.
6 BANKING NEW ENGLAND | Issue One | January 2020
the CBLR banking organization may remain in the CBLR framework. The two-quarter grace period, however, is not available for a CBLR banking organization that fails to satisfy the qualifying criteria due to the consummation of a merger transaction. The final rule does not establish CBLR-specific PCA proxy levels (i.e., adequately capitalized, undercapitalized and significantly undercapitalized thresholds) that would have enabled CBLR banking organizations to remain in the CBLR framework indefinitely, even if they failed to exceed the 9 percent CBLR threshold. Consequently, except during the two-quarter grace period, CBLR banking organizations must always exceed the 9 percent CBLR threshold to remain in the CBLR framework. Planning Considerations The CBLR framework should be beneficial for many community banks and holding companies, as they would be subject to a more simplified capital framework that would require the calculation and reporting of a single leverage ratio (the CBLR) and eliminate the time consuming need to risk-weight assets. While this may be very attractive,
before electing to use the CBLR framework, qualifying community banking organizations should consider their current and anticipated future capital levels in view of the CBLR requirements, whether they want to increase capital with equity instead of debt, their current and planned asset mix and how it impacts their capital ratios, their anticipated growth rate and how close they are to the key asset thresholds (such as the $3 billion threshold for exempting small bank and savings and loan holding companies from the Federal Reserve’s regulatory capital requirements under the Federal Reserve’s Small Bank Holding Company Policy Statement and the $10 billion threshold). Moreover, qualifying community banking organizations must ensure that they can exceed the 9 percent CBLR threshold while executing their strategic plan, otherwise they will have to return to the Basel III capital framework, which may be counterproductive. ■ Jeff Cardone is a partner at Luse Gorman, PC, a Washington, DC-based law firm that specializes in representing community banks and other financial institutions in corporate, regulatory and executive compensation matters.
Issue One | January 2020 | BANKING NEW ENGLAND 7
Thirteen Named 2020 New Leaders In Banking Thirteen banking professionals from across Connecticut have been named New Leaders in Banking by Banking New England magazine and the Connecticut Bankers Association. These New Leaders in Banking were deemed the best of the best among the thousands of people who work in banking in Connecticut. They were nominated for their work as an outstanding employee, manager or business leader, and for making a notable impact within their financial institution and community. “These are the banking professionals who are blazing trails, accomplishing great things and will surely be at the top of the Connecticut banking industry in the years to come,” said Vincent M. Valvo, publisher and editor of Banking New England.
2020 New Leaders Honorees • • • • • • •
Richard Balestracci, Chelsea Groton Bank Andrea Barron, Dime Bank Kasey Beckendorf, Union Savings Bank Chad Belanger, Thomaston Savings Bank Bjorn Bumactao, Webster Bank, N.A. Deborah Hull, Fairfield County Bank Courtney Jinjika, KeyBank
• • • • • •
Susan Kiddy, Windsor Federal Savings Karin O’Brien, Newtown Savings Bank Melissa Root, Connecticut Mutual Holding Company Jean Stapf, Salisbury Bank & Trust Company Alex Sulpasso, Guilford Savings Bank Brock Wehry, National Iron Bank
PRESENTED BY
SPONSORED BY
8 BANKING NEW ENGLAND | Issue One | January 2020
How did you get into banking, and what keeps you motivated to stay? What got me into banking is the same thing that keeps me motivated to stay – people. In college, I was eager to learn more about finance, economics, and business. When I saw how I could play a role in helping someone expand a business, renovate an investment property, or meet any one of their other financial objectives, banking felt like a natural fit. I very much enjoy working internally with a variety of people to come up with creative solutions, new ways of either meeting a bank member’s needs, or differentiating ourselves. Every day brings a new challenge, and a new opportunity. Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Richard Balestracci
Vice President Commercial Loan Officer Chelsea Groton Bank
I have been fortunate to have many great mentors throughout my career. Both personally and professionally, I really feel that the old adage, “It takes a village,” applies. Being able to engage different mentors for different development opportunities has enabled me to better understand and weigh out different perspectives so I can better serve our members, our community, and our team. Both formally and informally, I have had mentors at Chelsea that have always been accessible, available, and more than willing to provide guidance.
Andrea Barron
What do you consider your greatest success? On a personal level, it is an easy question – it would be seeing the people my kids are developing into (Breana, 7 and James, 5). Professionally, a common thread throughout my career is that the successes I have experienced all involved the team rowing in the same direction, with a common goal and common vision. How do you see technology changing banking in the next few years? I see technology changing the way we execute transactions (faster, ease of access, efficiencies, etc.). However, I believe it will just further necessitate the need for local relationships and expertise. The means of operations may change, but the fundamentals and relationships will become even more important than they are today.
How did you get into banking, and what keeps you motivated to stay?
What do you consider your greatest success?
I entered the banking profession as an entry-level teller, not quite sure what I wanted to do. I soon realized that I wanted to learn everything I could about the banking industry. It was important to me to find a career where there was a team atmosphere throughout the whole organization. This gave me the opportunity to successfully interact with customers and daily help them with their financial needs.
Relocating and applying for banking positions in a new county where I didn’t have a customer base, community network, or a performance history was a challenge. I am extremely thankful that senior management chose me as part of their team. I have been successful in developing relationships and growing a customer base, being an active participant in the community, and performing to a level whereby Dime Bank nominated me for this award.
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
AVP, Branch Manager Dime Bank
Maintaining mentorships, at least informally, has always been important to my growth and development. I consider myself to be a lifetime learner and am continually looking for ways to grow and improve. At the very least, it helps ensure continuity in executing on our vision, but it also helps foster ongoing leadership development throughout the organization.
During my formative years in banking, I was fortunate to have four very knowledge and selfless mentors who were gracious enough to train and mentor me: Kevin Gilmartin, Wendy Macedo, Barbara Budnick, and Charles Howell. They instilled in me the importance of time management, operational excellence, how to develop and lead a team, and ultimately providing an unparalleled level of customer service. A good mentor isn’t afraid to train and coach their team members in everything they know; having no fear of their own job security. They consistently work to develop their team’s skills and professional growth. It’s important to me to display these traits in my management role.
How do you see technology changing banking in the next few years? I have read several articles over the past six months which suggest the following: • Iris recognition will be able to help overall bank security. • Banks are investing heavily in digital banking technology in which customers use mobile, web or digital platforms for banking services. • The in-bank experience of the future might look like an Apple store experience. A branch might direct customers to interact with tech kiosks for more transactions, thereby eliminating human interaction and bank jobs. What is your favorite book? “Carpedia’s 52 Maxims,” and the poem “IF” by Rudyard Kipling
Issue One | January 2020 | BANKING NEW ENGLAND 9
How did you get into banking, and what keeps you motivated to stay? * My first job in banking was as a teller before college. I needed a full-time job and a family friend recommended that I apply. When I graduated from college, a mentor recommended that I apply to a bank management training program which he compared to receiving a mini-MBA. He was right. The training program exposed me to various roles in retail banking and showed me how rewarding it is to help customers achieve their financial goals. I love what I do. Banks are the lifeblood of a thriving community. As our president and CEO Cynthia Merkle has stated, “We are rooted in our commitment to our customers, team members, and community, cultivating a strong future of growth - together.” I am honored to be a part of that winning culture.
Kasey L. Beckendorf Director of Compliance Union Savings Bank
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
My greatest career success is obtaining the Certified Regulatory Compliance Manager (CRCM) certification in 2016. The CRCM certification is considered the gold standard in my field. How do you see technology changing banking in the next few years? Technology has and continues to change the way that customers interact with businesses and banks are no exception. Banks need to embrace new technology and pursue opportunities to provide customers with the services and experiences they desire. From a compliance standpoint, the regulators recognize that technology is transforming banking and their willingness to tailor regulatory expectations to allow banks to adopt new technologies is essential for the future success of our industry. What is your favorite book? “Team of Rivals” by Doris Kearns Goodwin
I have and I would not be where I am today without those mentors. My mentors have encouraged me to step outside of my comfort zone and take on new challenges. Mentors play an essential role in career development and I am always looking for opportunities to mentor others. What do you consider your greatest success?
LE A DI NG BY E X AMPLE K ASEY BECKENDORF NEW LE ADER IN BANKING AWARD WINNER
Congratulations Kasey Beckendorf, our Director of Compliance, for being named a New Leader in Banking by the Connecticut Bankers Association. Your knowledge and ability to collaborate across business lines to achieve goals as well as your dedication to the community is an inspiration to us all.
unionsavings.com
10 BANKING NEW ENGLAND | Issue One | January 2020
How did you get into banking, and what keeps you motivated to stay? Initially, I was approached by my high school guidance counselor and notified that Thomaston Savings Bank was looking for part-time tellers and jumped at the chance to do something different from the ‘typical’ high school job. From a daily perspective, I am motivated to stay in the industry by my current employer. Thomaston Savings Bank has a fantastic executive management team that has created an employee driven culture that strives to empower employees to challenge themselves and grow. Additionally, the culture drives employees to go above and beyond every day when working with customers and other departments. Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Chad Belanger
Junior Treasury Analyst / Assistant Treasurer Thomaston Savings Bank
I am fortunate to have had numerous great mentors and feel that mentorship is absolutely critical to success. A mentor helps you refine the raw knowledge you have obtained by lending you the benefit of their own experiences, as well as those shared by their mentors. This refined knowledge allows you to leap-frog the trials and tribulations of those who came before you and allows you to focus your efforts on new, unexplored challenges. Mentoring has always been a major focus area for me. I have been mentoring a local student since he
was in sixth grade and plan to follow him through to his graduation next year. In the workplace, I regularly encourage coworkers to approach challenges from a different perspective than they normally would and share any relevant experience I can. What do you consider your greatest success? I consider the sum of an entire life’s effort on the trail to be the true measure of success. To that end, I would consider my greatest success any day that I can answer yes to the following two questions: Did I learn something new? Did I make a positive impact on the world around me? How do you see technology changing banking in the next few years? The Good: Increased efficiency; Better access to banking; Comprehensive analytics.
The Bad: Increased cybercrime; Banking becomes impersonal.
The Ugly: Lack of regulation for Fintech companies will bring reputation risk to the entire banking industry. The Silver Lining: There is great opportunity for community banks that prudently utilize technological advances, while maintaining the human element in banking.
Congratulations to Chad Belanger for being selected as a 2020 New Leader in Banking! CHAD BELANGER
JUNIOR TREASURER ANALYST ASSISTANT TREASURER, FINANCE
855.344.1874 | 860.283.1874
ThomastonSB.com Member FDIC
Issue One | January 2020 | BANKING NEW ENGLAND 11
How did you get into banking, and what keeps you motivated to stay?
How do you see technology changing banking in the next few years?
I was hired from retail management and started as a trainee. I stay motivated by helping families’ dreams come true.
Technology will bring more flexibility (i.e. remote closings, remote conferencing, interactive ATMs. Human interaction will be even more essential as relationships will be all that differentiates the coldness of technology vs the personal interactions.
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on? I have had many mentors in the past. they all emphasized one thing: passion. If you do not have passion for what you do, whether banking , sports or otherwise, you will never be great at it. I always strived to be as passionate as possible in everything I do an give my all in every endeavor .
What is your favorite book? “Horus Rising” by Dan Abnett
What do you consider your greatest success? My family: I have a loving wife and two wonderful kids who make me proud.
Bjorn Bumactao Banking Center Manager Webster Bank
Share The News About The New Leaders! #NewLeadersCT2020
Congratulations to our own Andrea Barron for being recognized as a New Leader in Banking! Discover the Way Banking Should Be
860.859.4300 | dime-bank.com | 12 BANKING NEW ENGLAND | Issue One | January 2020
How did you get into banking, and what keeps you motivated to stay?
How do you see technology changing banking in the next few years?
A friend, that was an employee of the bank, referred me to a position that was open. Over 12 years later, the bank continues to provide me with challenging opportunities, and I can honestly say I work with the best people!
It will be a challenge to try to find new ways to distinguish yourself, provide excellent customer service and value while continually trying to minimize fraud. Technology plays a huge role today with everything needing to be at your fingertips and instantaneous. As a community bank, we are very involved in the communities we serve. While we are not an innovator from a technological standpoint, we try to be a close follower and pride ourselves on the exceptional service we can provide.
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on? Yes, I have had several great mentors and the bank is fortunate to have a number of employees with many years of service and experience. I joke that when I joined the bank, I didn’t realize I was making a lifetime commitment! In all seriousness, mentoring and succession planning is important so that as an employee when opportunities come up you are ready for them and so that as an organization, we can provide continuity of service.
What is your favorite book? I love a good mystery, but all-time favorite book is “Pride and Prejudice” by Jane Austen.
What do you consider your greatest success?
Deborah Hull VP, Controller Fairfield County Bank
There have been many system conversions, accounting changes and even economic downturns that have been a challenge, but what gives me the most joy is to see people that you’ve hired and mentored along the way continue to have success and move up in the organization.
Congratulations to Deborah Hull 2020 New Leader in Banking “While Deb’s talent and depth of knowledge provide daily guidance and support to the Finance Team, her commitment to the organization as a whole is inspiring. Her interest, patience and successful participation in cross-functional projects that improve the general function of the Bank are her hallmarks, and her dedication and willingness to go the extra mile in every situation set her apart as a leader.” - Karen Critelli, EVP and Chief Financial Officer
Deborah Hull | Employee Since 2007
Member FDIC
We Are Fairfield County
Issue One | January 2020 | BANKING NEW ENGLAND 13
How did you get into banking, and what keeps you motivated to stay?
What do you consider your greatest success?
My brother encouraged me to go into banking as that was his career as well. Our focus at KeyBank is financial wellness and that mirrors what keeps me personally motivated. My strong desire to help others comes into focus daily in my professional life. KeyBank provides me resources to best support my community and ensure that each day we make an impact on a client that can change lives.
My greatest passions are coaching and teaching others how to lead, sharing what I love about Key and our financial wellness culture. I have established five networking groups with others on the horizon. I am proud of the 70-plus employees who have completed our Fast Track program: learning skills outside of their current roles. My favorite part of the day is hearing client impacts and employee successes helping someone with financial wellness, career growth, mentoring, or successfully coaching to a skill.
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Courtney Jinjika Senior Vice President/ Regional Retail Leader KeyBank
Through my years in banking I have had many great formal and informal mentors. My greatest mentor is my father who encourages me, allows me to talk through things, and is a great sounding board. My most recent mentor, Brian Fishel, KeyBank chief human resources officer, encourages me to research, learn, and approach a question from multiple standpoints. Being a mentor is also very important to me. I consistently encourage KeyBank employees to utilize our internal program Keys2Mentor program where I serve as a mentor as well.
How do you see technology changing banking in the next few years? KeyBank is leading the future with our digital financial wellness guides and I look forward to their continued evolution over time. They are part of the employee and client experience we offer allowing us to deliver solutions faster and impact more people consistently with both the approach and delivery. What is your favorite book? “7 Habits of Highly Effective People” by Stephen Covey.
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4PORTFOLIO LOAN REVIEW GENERAL & SPECIALIZED
4STRESS TESTING SERVICES 4STRESS TESTING VALIDATION 4LOAN LOSS RESERVE VALIDATION
Susan Kiddy Communications Officer Windsor Federal
How did you get into banking, and what keeps you motivated to stay? *
What do you consider your greatest success?
I was a young, single mother of two when I got my first job in banking as a teller. A lover of learning who likes to challenge myself, I expressed interest in learning more and was soon trained on account opening and consumer loans. Since then, I’ve held the positions of mortgage processor, underwriter, branch admin/marketing, data analyst, and my current and most fulfilling position of communications officer. Banking affords vast opportunities in different areas to explore and grow. My favorite part of banking, though, is the people. Some of my most meaningful friendships are those that grew out of the workplace.
I am at a point of personal and professional fulfillment, despite adversity and setbacks along the way.
Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Technology is making the world faster. We obtain things with a few clicks of a button, and without having to leave the house. This instant gratification is changing the way we communicate and maintain relationships, including the way we attract and communicate with customers. We have to meet them where they are, which is online. The challenge will be to continue to provide exceptional customer service and differentiate ourselves from other institutions in a digital world.
I have had the fortune of meeting people along the way who have seen something in me and invested the time in nurturing my growth – professionally and equally as important, personally - from college professors to supervisors, classmates and colleagues. I’ve also had the fortune of being put in the position to mentor others and what I have found is that mentoring is really a two-way street, where the teacher can become a student.
I returned to school at 30 and earned my BS in communications. Though I didn’t hold a “regular” job in that field, I practiced my skills while volunteering for various nonprofits. It paid off when I was chosen for the position of corp communications specialist at Windsor Fed, and then promoted to officer. How do you see technology changing banking in the next few years?
What is your favorite book? “Little Women” by Louisa May Alcott, the Harry Potter series, and “Becoming” by Michelle Obama.
Issue One | January 2020 | BANKING NEW ENGLAND 15
How did you get into banking, and what keeps you motivated to stay? * I come from a family of bankers. My grandfather and father were lifelong banking professionals. When I was in college my father encouraged me to peruse a summer position at The Bank of New York. I did so and my summer job led to a rewarding career. And the motivation to stay now is simple: I like what I do! Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Karin D. O’Brien V.P. BSA/Fraud Officer Newtown Savings Bank
My grandfather, a kind and generous man, was my first mentor. My father would often reminisce of visiting my grandfather, his dad, at the office and never forgot the day they stopped in the doorway to shake hands and chat with the doorman. The key takeaway was that no matter the role or job responsibility, everyone is to be treated with respect and kindness. My father passed this on to me and demonstrated these same principles. Then I was fortunate to work for a gentleman who managed his staff under this same philosophy. My boss was the CFO and my first mentor in banking. He was a very busy man, but never allowed his seniority or the stress of his job impact how he treated others. He also taught me how to
prioritize work and manage difficult situations. His management style drove positive results and gave me a strong foundation to become an effective manager. I do focus on mentoring and I am also cognizant of how my leadership style and actions may influence our future leaders. What do you consider your greatest success? I cannot pinpoint a single greatest success. I personally do not feel it is defined by your job, the home you live in or the car you drive. Life comes with joyful moments and stressful challenges. Being able to rise and shine each day no matter what lies ahead would be my greatest success! How do you see technology changing banking in the next few years? We know that technology will continue to strengthen banks’ ability to reduce costs and increase revenue. However, the threat we face is cybercrime. Banks must protect data and continue to educate staff and consumers about the danger’s cybercriminals pose. What is your favorite book? “The Pursuit of Happyness” by Chris Gardner and Quincy Troupe
CONGRATULATIONS! Congratulations Karin O’Brien on your New Leaders in Banking Award!
Member FDIC
16 BANKING NEW ENGLAND | Issue One | January 2020
NSBonline.com | 800.461.0672
How did you get into banking, and what keeps you motivated to stay?
What do you consider your greatest success?
It was a temporary position. I was out of college and needed medical insurance. I was planning on going back to school to get my law degree and found myself in a new career path.
My greatest success is my new job opportunity. I have never done sales before, and merchant is all sales. I am actually successful at it and the first in the bank to have this opportunity. The fear of having to talk to complete strangers and doing cold calls was all new and every day I feel more comfortable and confident in my new role.
I am motivated every day. My days are never the same. My customers and my co-workers keep me positive and strong. I keep learning and changing. It is never dull! Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on? I have had many mentors. I have been molded to be the way I am today because of them. Starting with my Mom. She was a strong independent woman who tried to make sure I had everything I needed to succeed.
Melissa Root, AVP Merchant Service and Sales Manager, Connecticut Mutual Holding Company
I think everyone needs a mentor, someone to guide them but control them, someone to make sure you follow the path you were intended for. This is why I am an advisor for Leadership Northwest for the Chamber of Commerce. I get to work with up-andcoming leaders and help them achieve their goals and visions.
How did you get into banking, and what keeps you motivated to stay? After my daughter was born, I was seeking to change career paths and began looking for open entry-level positions. I applied to Salisbury Bank with interest in a teller position but was offered a role in deposit operations. I accepted and immediately realized that I enjoyed banking. Within a year I had transferred to the wealth advisory division. It’s easy for me to stay motivated because you literally can’t run out of things to learn about this industry. I also work as part of a great team and they inspire me every day. Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Jean Stapf, AVP, Trust Administrative Coordinator and Wealth Manager Salisbury Bank and Trust
When I first started in wealth advisory my supervisor was inspiring. She had held my entrylevel position and had worked her way through the ranks to trust officer. She had so much knowledge and was well respected. She was always willing to go above and beyond to spend extra time with me. My current management team has also been a great source of mentorship. They give me the space I need to lead my team but also seems to know when I need support or guidance.
How do you see technology changing banking in the next few years? Technology is always going to change banking. We already see it with lobby traffic and so many online products. My position will always be used, credit cards are being used more and more every day! As much as we can plan for computers taking over, we will always have those that want to see their banker and have that one-on-one relationship. That is what our bank stands for and what makes us different. What is your favorite book? Dr. Seuss’ “Oh, the Places You’ll Go!” Because we all start somewhere.
I know my career would not be the same without incredible mentorship and I work hard to be a mentor for my employees. What do you consider your greatest success? Professionally my greatest success has been starting at a bank with no experience and building a career at that same bank. When you start something new it’s easy to feel like you aren’t getting anywhere but if you put your head down and do your best work every single day it will be noticed. How do you see technology changing banking in the next few years? Technology is going to continue to change at a rapid pace and banks are going to have to try to keep up. Although community banks don’t have the same resources as national banks, they have to offer enough technology to remain relevant and then be creative to differentiate themselves to customers. What is your favorite book? Over the last several years most of my recreational reading has consisted of bedtime stories with my kids. Our favorite book is “Herman Heals His Heart.”
Issue One | January 2020 | BANKING NEW ENGLAND 17
How did you get into banking, and what keeps you motivated to stay? My career has followed an interesting progression into banking. I originally started my career in government, then regulatory technology for community financial institutions, which provided the foundation for a natural transition to banking. At the highest level what keeps me motivated to stay in banking is being a critical part of what I believe to be the foundation of our financial system: the community bank. The trust that exists between the leaders and staff at community banks and the people that they serve allows for strong and vital local economies and institutions. The ability to give back and support local organizations that I value is also rewarding. Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on?
Alexander Sulpasso VP, Operations Manager Guilford Savings Bank
I have had several great mentors from a variety of backgrounds. Mentoring at its best is guiding someone to make a decision, providing a structure, and then letting them own the outcome. Mentoring is important because it cultivates independent problem solvers that can navigate murky gray areas in any situation or organization.
I focus on mentoring by developing my staff to allow them to learn as opportunities come up. I feel responsible for providing the tools for my staff to become the best they can be, which in turn bolsters the strength of our organization. What do you consider your greatest success? I’m very proud of the life that I have been able to build both personally and professionally. My life trajectory came with many obstacles and sporadic supports. I consider it a tremendous success that I am able to contribute value in my professional role, be a dad and husband to my fantastic children and wife, and give back to my community. How do you see technology changing banking in the next few years? I see technology changing banking in three very specific ways. The first is through the automation of back-office processes. The second is the speed in which payments are processed in a safe and secure way, including fraud mitigation. The final major change will be in technology enhancing the customer experience. What is your favorite book? “The Radicalism of the American Revolution,� by Gordon Wood
SHINING
BRIGHT! Guilford Savings Bank congratulates
Alexander Sulpasso VP, Operations Manager
and all of the 2020 New Leader in Banking recipients on their achievement!
gsb-yourbank.com
18 BANKING NEW ENGLAND | Issue One | January 2020
How did you get into banking, and what keeps you motivated to stay? I graduated with degrees in journalism and English from the University of Connecticut. After college I briefly did some freelance work and had work in the restaurant business. When a job opened up at National Iron Bank, I thought it was a great way to write and have a “9 to 5” job. However, once I began, I found out I enjoyed and excelled at it. I’ve worked my way up, taken on lending, and graduated the Connecticut School of Finance & Management. I’m particularly motivated to stay in banking because I enjoy helping people. It’s rewarding to assist clients in the home-buying process for example.
Brock Wehry Assistant Vice President, Mortgage Specialist & Relationship Manager, National Iron Bank
Likewise, I enjoy developing my team and seeing them succeed. National Iron Bank has fostered my career development, and I love being able to do the same for my team. Banking also allows me to work with other community leaders to make a real impact locally. Have you had any great mentors along the way? What is the importance of mentoring and is this something that you focus on? My father has been a mentor in countless ways and instilled in me my work ethic. In banking, our VP & regional manager Catie Dougan has perhaps
been the most instrumental. She’s consistently provided me with guidance, especially when I first got into lending. Even though Catie is perhaps most prominent, I wouldn’t want to diminish the guidance and knowledge others have given me, including Steven Cornell and JoAnn Cahill. In my role as manager, I believe it’s vital to mentor my team to foster their growth and development. What do you consider your greatest success? My greatest success is the overall positive impact I’ve been able to have in my community. I’ve partnered with many dedicated individuals and businesses in being able to raise money and volunteer for numerous non-profits and local events. How do you see technology changing banking in the next few years? Features that emphasize convenience such as mobile wallets and P2P payments will grow with demographic shifts. It’s no secret that DigitalOnly Banks have increased market share as well, although I think in many customers still prefer the personal touch and convenience of a live person. Bankers will act more as personal consultants advising consumers on their individual needs.
Congratulations to our 2020 New Leader in Banking
Brock Wehry Relationship Manager Assistant Vice President Loan Origination Specialist
IronBank.com Cornwall | Norfolk | Salisbury Washington Depot | Litchfield Loan Office
MLO: 1530882
Issue One | January 2020 | BANKING NEW ENGLAND 19
T EC HN O LO GY
B Y B RU CE PAU L, S P EC I AL TO B A N K I N G N E W E N GL A N D
How Good Is Your Technology? Your Customers Told Us. The recent Banking Benchmarks collected hundreds of thousands of reviews from consumers and businesses across New England and revealed some interesting and surprising findings about how they use and view banking technology, and how gender, age and income drive that usage.
20 BANKING NEW ENGLAND | Issue One | January 2020
> Does better technology and tools really help retain customers? Absolutely. The analysis across every single bank in MA, NH, CT, RI shows that consumers and businesses that use and like their bank’s technology are 25 percent more likely to remain loyal and to increase their share of wallet with the bank. On the flip side, bad, out-ofdate technology increases the likelihood of a customer leaving by 187 percent! Fortunately, most banks are doing a good job since only 10 percent of customers think the technology at their bank is subpar. (See the case study for two examples) Do you know how your customers rate your technology? > Does better technology and tools really attract new customers? This answer is more complicated. Most consumers do say that technology is important in choosing a new bank. That much is clear. But what is less clear, in the minds of those same consumers, is which banks actually have the best technology. The latest Benchmark results show that 71 percent think most banks and credit unions have about the same caliber technology and tools as every other bank. Out of the thousands of institutions we cover, the vast majority were rated average in technology by prospects (their potential customers). We asked prospects how good or bad they thought the technology would be at other places they do not yet bank at, and only 21 banks and credit unions in New England were seen as truly bad. > Does bigger equal better in technology? When consumers are asked to rank banks they have not used, they are slightly more likely to assume that the larger banks have better technology and tools than smaller ones. However, this gap has been narrowing
Better than average 36%
Average 54%
Worse than average 10%
over the past five to six years as more and more customers tell us that they assume all institutions have basically the same level of online and mobile services. In fact, when we analyzed the latest Benchmark results for each individual town across MA, CT, NH, and RI, we found that in over 80 percent of the towns, there was at least one community bank ranked in the top three in technology by potential customers. This is bad news for the largest banks because it means that the hundreds of millions of dollars they have spent developing and marketing their technology, has resulted in very little differentiation from the smaller banks. When consumers and businesses are asked to rate their own bank, it is a different story. As you can see from the regional rankings listed here, smaller community banks are rated as high or higher than the largest banks over 50 percent of the time. It also shows that some banks are inconsistent in different areas of their footprint: they are rated highly by customers in one area but lower by customers in another area. This is usually due to inconsistent training (see case study). This serves to remind all banks that while the biggest banks might have an advantage in spending and image, community banks can certainly hold their own. > The Times are Changing New England banks have to ensure that they are ready for the continuing shift away from the branch toward technology. More than two-thirds of regional customers say they will increase their usage of online and mobile banking tools in the coming year. For high income earners (earning over $250,000 per year), that increases to 71 percent, and for Millennials, that goes up to 74 percent. > Millennials are changing the landscape, not demolishing it. Many bankers we meet with believe that the younger generation, the Millennials, are causing the branch to go the way of the dinosaur. And many others say that the only reason to keep branches open is to accommodate a handful of elderly customers who just want to come in for a chat. In New England at least, both notions appear to be overblown. Across the region, less than half of Baby Boomers say they prefer using a branch or the phone over online and mobile. Among Millennials, about a quarter say they actually prefer the branch or phone versus online and mobile. Keep in mind that this does vary quite a bit from area to area so it is very important to understand the dynamics in your particular trade area. > Gender Gap In a reversal of roles in years past, women in New England are now almost 20 percent more likely than men to prefer online/mobile to branch/phone. Women are also going to increase their use of online and mobile
Issue One | January 2020 | BANKING NEW ENGLAND 21
faster, further widening this technological gender gap. This gender disparity is playing out in some interesting ways, with a few northeast banks ranking much higher among women than men. With the financial and tech savvy of women compared to men, this could be a very lucrative approach for the banks with the right image.
> The Threat of Non Banks
Many articles have proclaimed the banking industry as doomed in the face of a fintech revolution, with companies like Apple, Google, Amazon and others supposedly poised to relegate the hapless old bank to the history books alongside the telegraph office and the general store. In New England, non-banking technology has made some inroads, with 31 percent of customers currently using some non-banks to handle their money. While that is not a surprise to many, what might be a surprise is that Millennials are the least likely to use non-banks and Baby Boomers are the most like to do so. The reason lies not in age, but in wealth. Northeast residents with incomes over $100,000 are much more likely to have diversified their financial partners than their less well-off counterparts. Since we are continuously interviewing so many households and businesses about their banking lives, we often take the opportunity to probe deeper for our subscribers into the issues they care about. A large number of them have been asking about non-banks lately, so we took it upon ourselves
Banking Benchmarks® Spcial Analysis
Would You Consider Banking With ... Paypal
Amazon
Apple U.S. Postal Service Walmart
Starbucks
Facebook 0%
20%
©2019 Customer Experience Solutions, LLC. All rights reserved.
22 BANKING NEW ENGLAND | Issue One | January 2020
40%
Technology & Tools Rhode Island All Counties 1 TD 2 BofA 3 Citizens 4 BankNewport 5 Santander New Hampshire All Counties 1 Mascoma 2 Savings Bank of Walpole 3 Bar Harbor 4 TD 5 Woodsville West CT Fairfield, Litchfield 1 Thomaston 2 Chase 3 BofA 4 People’s United 5 Citi Capital CT Hartford, Middlesex 1 Liberty 2 Farmington (People’s United) 3 TD 4 BofA 5 Chase New Haven CT New Haven 1 Thomaston 2 TD 3 Chase 4 Ion 5 Liberty East CT New London, Tolland, Windham 1 Hometown 2 TD 3 United 4 Chelsea Groton 5 People’s United
West MA Berkshire, Franklin, Hampden, Hampshire 1 PeoplesBank 2 Florence 3 TD 4 Adams Community 5 Country Central MA Worcester 1 Cornerstone 2 Fidelity Bank 3 TD 4 Hometown 5 People’s United Greater Boston MA Middlesex, Norfolk, Suffolk 1 BofA 2 Watertown 3 Dedham 4 TD 5 Northern North Shore MA
Essex 1 2 3 4 5
Enterprise TD Eastern BofA Haverhill
South Shore MA
Barnstable, Bristol, Dukes, Nantucket, Plymouth
1 Martha’s Vineyand Savings 2 Coop Bank of Cape Cod 3 BayCoast 4 Cape Cod Five 5 Mutual
to ask if they would ever consider banking with some high profile non-banks that are thinking of invading the banking space. The results are below. As you can see, PayPal is in the best position, while Facebook is even less considered than Starbucks. We also saw a big variation by geography. · In southern Connecticut, households and businesses were much less trusting of these companies to handle their banking · In greater Boston, they were much more likely to trust Google and Apple · Across New Hampshire, people were much more likely than elsewhere to trust the Postal Service to deliver banking (rain or shine!) We also saw some interesting differences by gender · Men are more likely to trust cyberspace-based entities like PayPal, Amazon and especially Facebook with their banking · Women are much more likely to trust entities with a physical presence like the Postal Service, Walmart and even Starbucks
> Banking Choice Awards The Banking Choice Awards will be awarded again in 2020 and the rankings for Tools and Technology below are a midyear preview of those results. The ratings and rankings are based upon interviews we conduct with each institutions’ own customers. The rankings are likely to change before the awards as some institutions roll out new services and as others (regrettably) stumble. Stay tuned (or contact us to get your own results)! > In Conclusion Technology and tools really can make a difference in customers’ experience, and usually for the better. It is important to know how your customers rate your technology—is it making their lives better or causing hassle? Just as important is to know how those ratings compare to your local competition, so you know before you fall hopelessly behind. Once you have gotten the objective feedback from customers, then you can plan how to fix it and prevent attrition, or to leverage it to increase loyalty and gain new business. ■
Bruce Paul is the founder of the MA, CT, RI, and NH Banking Benchmarks, and leads the CXLign - Banking team at the Rivel Research Group. For more information about your own customer ratings and rankings, contact Bruce at 203-906-8923 or bpaul@rivel.com
CASE STUDY: Two Community Banks recently updated their online banking services within a few months of one another in the middle of last year. Both used the same core provider and upgraded to the same online platform. Before the transition, both of their respective customer bases rated their technology very poorly and at both banks the online and mobile usage was 20-25 percent behind local competitors. The percentage of customers at each bank that did not know how to use the tools was between 45 and 50 percent. A year later, the outcomes have been very different.
For Bank A:
• A 17 percent increase in the number of their customers using the online tools • Customers now rate the bank’s technology 7 percent above average • Loyalty and cross sell has started to increase • Average cost-to-serve has just started to drop • They got everything they hoped from such a big investment
For Bank B:
the transition has been tough: • Online usage has actually dropped 3 percent among customes • Loyalty has dropped slightly • Complaints have soared • So far, the net result of the transition has been a negative
So why such different outcomes despite moving to the exact same tools? Their customers are very clear (we interview thousands of them as part of our Banking Benchmarks): the training they received was vastly different. At Bank A, one year after transition, 9 percent of the customers say the tools are hard to use and 12 percent said they still needed training to use the new tools. At Bank B, it is 59 percent and 62 percent, respectively. Bank B leadership had assumed that the tools would be intuitive enough that their customers would figure them out and did not have a structured training program for their customers—or their staff. During our customer interviews, we hear comments like: “how am I supposed to be able to use the online banking if the staff at the branch don’t know how?” The clear lesson is that the training is at least as important as the tools themselves.
Issue One | January 2020 | BANKING NEW ENGLAND 23
The amazing BankWorld is back for its 25th year, and once again, this is your can’t-miss opportunity to learn about the future of banking at the Northeast’s largest and most exciting banking show. This expansive one-day conference
will provide you with essential educational sessions, interactive panels, cutting-edge exhibits, countless networking opportunities, raffles, and so much more – all with an eye to giving you an edge against the competition.
nebankworld.com
THURSDAY, JANUARY 16, 2020 4 p.m. – 5 p.m.
REGISTRATION OPEN
5:30 pm – 8:00 pm
NEW LEADERS AWARDS RECEPTION & GALA Mohegan Sun Cabaret
Join us as we once more recognize the banking industry’s up-and-coming stars. Sponsored by Wolf & Co., this year’s soiree gets a new home at the exciting. Separately-ticketed event.
FRIDAY, JANUARY 17, 2020 7:30 a.m.
REGISTRATION
8:00 a.m.
EXHIBIT HALL OPENS
8:00 a.m. – 9:30 a.m. SBA LENDERS FORUM Meeting Room 1
We welcome the U.S. Small Business Administration as it presents an update and forum for banks and credit unions working to improve access to capital to our region’s growing small business economy.
8:00 a.m. – 8:45 a.m.
WHAT COMMUNITY BANKERS CAN LEARN FROM AMAZON Meeting Room 2
In this session we will introduce a challenger approach (and related metrics) that will inspire leaders to rethink support delivery methods and show how small, incremental improvements drive LARGE operational efficiency gains, and a great
24 BANKING NEW ENGLAND | Issue One | January 2020
consumer experience. Presenter Al Rosenbaum, Executive Vice President of Customer Success at Silvercloud
8:45 a.m. – 9:30 a.m.
CREATING CYBERSECURITY CULTURE: MANAGING THE HUMAN FACTORS OF RISK Meeting Room 2 You will learn how unifying the components of a well-conceived and managed cybersecurity program can help reduce risk and create a safer environment in which to fulfill the objectives of a sound business strategy. Presented by John H. Rogers, CISSP; Director of Advisory Services, Sage Data Security.
9:30 a.m. – 10:15 a.m.
HOW TO LAUNCH A DIGITAL-ONLY BANK IN 90 DAYS USING YOUR EXISTING CHARTER Meeting Room 1 Learn how NYMBUS SmartLaunch enables you to quickly and cost-effectively stand up a fullyoutsourced digital bank to attract new customers and revenue growth without undergoing a technology conversion or hiring any additional staff. Presented by Drew Dizon, Senior Vice President of Strategic Solutions at NYMBUS. WHAT IF TRUMP NEGOTIATED YOUR CORE IT DEAL? Meeting Room 2 This apolitical, non-partisan and entertaining presentation will make President Trump the lead negotiator against Core & IT suppliers such as Fiserv, FIS and Jack Henry. Hear from
PRESENTED BY:
his Twitter Account along with many of his political rivals and friends as they join together in helping bankers obtain a fair, balanced and reciprocal trade agreement with these critical vendors. Presented by Aaron Silva, president of Paladin fs.
Gravel, Vice President of Information Security and Technology, Michael Kannan, Senior Security Consultant, GraVoc Associates, Inc. and Brian Brunelle, Senior Security Consultant, GraVoc Associates, Inc.
10:15 a.m. – 11:15 a.m.
1:45 p.m. – 2:30 p.m.
BREAK WITH EXHIBITORS
11:15 a.m. – Noon
IDENTIFY HIDDEN REVENUE IN YOUR GROWING BUSINESS PORTFOLIO Meeting Room 2 Join Eric Smith of Fiserv for a discussion on how financial institutions can enhance their data evaluation strategies to implement effective acquiring tactics that target business accounts, including merchants processing with competitive disruptors.
12:00 p.m. – 1:00 p.m. BUFFET LUNCH Inside Exhibit Hall
INVITATION ONLY: CEO/CFO LUNCHEON Meeting Room 1
1:00 p.m. – 1:45 p.m.
CURRENT TRENDS/REGULATORY FOCUS ON BUSINESS CONTINUITY AND POTENTIAL FINANCIAL IMPACTS OF SERVICE DISRUPTION Meeting Room 1 This session will focus on areas of Business Continuity that are being analyzed more than ever before and where institutions have fallen short, causing increased downtime that translates into unnecessary financial impacts to the organization. Presented by Tracy Hall, MBCP – IT Assurance Senior Manager, Wolf & Company, PC. BEAST OF BURDEN: MAKING SECURITY EASIER FOR EMPLOYEES Meeting Room 2
This session will examine methods for making security easier and more accessible to employees and demonstrate how your organization can benefit from these practices. Presented by Nathaniel C.
HOW TO HIRE BANKERS WHO WILL SELL Meeting Room 2 This interactive workshop, delivered by Tony Cole, Founder and CLO for Anthony Cole Training Group and Hire Better Salespeople, will provide you with a proven process for searching, interviewing, hiring and on-boarding bankers who will be successful salespeople. A JOURNEY FOR ONE Meeting Room 1 This discussion will focus on real-life banking examples of folks putting newer technologies to work in the wild—what is working, what is not— and what you should be evaluating. Join our speaker, Ben Wallace, CEO, Summit Technology, in this session presented by DieboldNixdorf. 2:30 p.m. – 3:15 p.m. DISRUPTING YOURSELF: USING FINTECH TO GROW YOUR BANK Meeting Room 1 FinTechs are currently fueling the fastest pace of change in the history of banking. And just as products have evolved, so have marketing tools and capabilities. Some banks are embracing this disruption, and using technology and new marketing strategies to help attract the next generation of customers. Join Kyle Charette, AVP of Business Development at COCC, for an overview of some growth opportunities that include; providing offerings that will make you stand out, using your data to unlock new business, enabling customer-specific ads through your digital channels, and engaging with demographics through a new digital brand. 3:00 p.m. – 3:30 p.m. LAST CHANCE WITH EXHIBITORS RAFFLE PRIZES ANNOUNCED CONFERENCE CLOSES
Issue One | January 2020 | BANKING NEW ENGLAND 25
FOOD & BEVERAGE
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530
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710 200 220 800 790 COFFEE
MEETING ROOM 2
330
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570
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BAR SERVICE
780 770
760
750
190
WATER STATIONS AVAILABLE ON THE EXHIBIT FLOOR
700
680
540
MEETING ROOM 1
640
ENTRANCE COMPANY BOOTH American Business Media 770 BCAC 190 BITS 400 BranchServ 240/260 Center for Financial Training 220 COCC 790/780 Conn. Bankers Association 380 CT Computer 100 Cummins-Allison Corp 470 Customized Service Concepts, LLC 350/360 Diebold Nixdorf 610 East Commerce Solutions 500 Entrust Datacard 120 Fed. Reserve Chi 330 Fiserv Inc. 180 GraVoc Associates, Inc. 480 Haberfeld 200
26 BANKING NEW ENGLAND | Issue One | January 2020
COMPANY BOOTH Harland Clarke 510 ISG 620 Jack Henry 760 Kenneth Sole Associates 570 Lighthouse Payment Services 580 Magee Company 310 Magtek 490 NAVCO 450 NEACH Payments Group 70 NES Group 430 New England Money Handling Systems 110 NextStep 610 NYMBUS 600 Paladin fs NA Parabit 590 PULSE, a Discover Company 210
COMPANY BOOTH RedHawk 150/160 Reich and Tang 440 RMF Funding 290 Sage Data Security 320 SB Value Partners 170 Scantron Technology Solutions 750 Secure Networks 130 Security Management Partners 460 SilverCloud Inc. 140 Solidus, Inc 630/640 Specialized Data Systems 370 Sycorr 430 The Long Group 520 The Warren Group 530 Valdis NA Ventus 390 Wolf & Co. 410/420
Thank you to these 2020 BankWorld Sponsors DIAMOND SPONSOR
PLATINUM SPONSORS
GOLD SPONSORS
SILVER SPONSORS
CUSTOMIZED SERVICE CONCEPTS, LLC
BRONZE
EVENT PARTNER
Issue One | January 2020 | BANKING NEW ENGLAND 27
B Y IA N H O U G H, S P E CI AL TO B A N K I N G N E W E N GL A N D
B
What Will The Branch Look Like In 2025?
L:
TH
UG
CRYSTA A H L
AL
RO
BRANC H D E S IGN
Data Science Will Play A Huge Role Regardless
W
hat will bank branches look like in the future? This is the burning question on many industry peoples’ lips, and for good reason. In preparation to write this article, I did what any bank branch expert would do and Googled it. No, really. But some of what I read sounded more like an episode of The Jetsons than a commonsense description of how current culture and technology might evolve based on our own studies here at Solidus. There were references to flying cars and customizable robots, holograms and advanced biometric security, and who am I to argue with these conjectures? Flying cars aside, most of it sounds pretty much inevitable. But ‌ Predicting what branches will look like in 2025 really is just a speculative view through a crystal ball, mainly because unforeseen technological innovations and subsequent lifestyle changes may derail current trends. But if one thing is certain, it is that data science will soon play a more central role in the location, design and function of bank branches.
28 BANKING NEW ENGLAND | Issue One | January 2020
Most writers choose to focus on the technology and superb customer service we’ll come to expect by 2025, without explaining how data and artificial intelligence (AI) will be at the root of the culture. Big Data has been a thing for much longer than many people realize. Masses of statistical information about human populations have been collected for hundreds of years, but it is only recently that AI has begun to do magical things with it. Previously undreamed possibilities have opened up for marketers and retailers—and community banks need to be part of this. Currently available (but largely underutilized) data applications for our industry include: market and socioeconomic analyses to determine the most profitable branch locations; strategic (data-driven) designs that drive selection of market-preferred branch delivery channels, and marketing insights compiled from automated and manually-entered customer relationship management (CRM) data that enable superlative and timely customer experiences.
Big Data And The Science Of Where
“
brand resonates so well with them, means being able to design branches whose delivery channels and layouts are tightly coupled to market preferences and therefore more likely to receive higher traffic and usage. This will be the norm within the next five to 10 years, and financial institutions that fail to apply data to their branch designs will appear irrelevant and fall by the wayside.
Dialogue Banking & Data Capture
In these times of decreased branch traffic, every visitor to your branch deserves your full attention, and to be made to feel part of your organization’s mission. Relationship building is the first objective of dialogue banking, but the goal of deeper customer engagement should ultimately be data capture. Some progressive banks today are already experimenting with highly personalized banking experiences, facilitated by specialized CRM tools. Unfortunately, most banks are not yet following this practice. This situation will have changed dramatically by 2025, as the importance of truly knowing your customer assumes a central role in statistical banking.
When evaluating potential Masses of branch profitability, location information about human is everything. Banks today are adopting the use of location populations have been collected Where Do You analytics in growing numbers, Find This Data? and by 2025 the practice will The type of data being for hundreds of years, but it is be integral to the business discussed above is supplied only recently that AI has begun by companies who specialize of siting and designing new branches, as well as evaluating in geographic information to do magical things with it. existing ones for consolidation systems (GIS) software and or closing. The harsh reality is geodatabase management that stagnant branch networks applications. The data is only that continue to perform one component of the overall barely adequately (while competitors relocate and evolve process; analytical expertise and on-the-ground field around them) will see diminished profits and lower work conducted by site selection professionals is also branch traffic, and they might not even exist in 2025. required when determining a location for a new branch. The time to apply Big Data to branch network Financial industry-experienced architects, designers and optimization is now if survival is to be assured. Future builders can use the same type of data to create custom branch site selections will be supported by such thorough branches that are optimal for their markets. And finally, location and socioeconomic analyses that they couldn’t financial institutions themselves can load CRMs with possibly be sited any better than where they’ll be. And their own customer data to provide seamless experiences considering that it takes one to two years from initial across channels that reflect their customers’ most planning to the opening of a new branch, 2025 is a lot personal preferences. When this data is combined with closer than it seems. specialist expertise, AI and banking technology, we will have truly entered a new age in banking.
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Market-Driven Branch Design
Data drives branch site selection and branch strategy, which in turn drives branch design. Socioeconomic analyses can reveal correlations between customer segments and successful branches in geographically different markets. These types of data can uncover detailed information about who your best customers really are (earnings, magazine subscriptions, favored grocery stores and restaurants, etc.). Knowing who your best customers are, and why your
2025—A New Age in Banking
By 2025, physical branches will have evolved to become super-efficient and convenient, sited in the best possible locations to maximize traffic and access. Branch architecture will be tailored to resonate with specific socioeconomic groups and to reflect the degree of financial and cultural sophistication in each market. The smart technology inside branches will be connected to customer devices, the organization’s CRM, and beyond Issue One | January 2020 | BANKING NEW ENGLAND 29
to other databases. The so-called “Internet of Things” will be married in a very real sense to our most basic technologies, and ultrapersonalized service will be the norm. We’ll be synced up to our financial activities via apps, electronic calendars, and even implanted chips. Advanced beacon technologies will detect our presence in (or close to) branches and send welcome messages, updates, invitations to events, or reminders to pay bills or make deposits. Here We Go… Perhaps now we’re finally ready to start the engine of our decidedly terrestrial car and, with the above in mind, take a trip to our local bank branch in the year 2025. The first thing we notice as we approach the branch will be the visual impact of the exterior branding and signage and possibly even branding elements being projected outward from the branch interior. Our smartphone may buzz as we’re reminded of the appointment we have with a financial consultant within the branch, or perhaps with offers of specific services we are known to seek around this time of year. The general exterior architecture clearly reflects that of nearby housing developments, local geography, or even ethnicity, whose occupants tend to compose a certain socioeconomic group. As we enter the open-plan space, a digital handshake between our phones and every in-branch application ensures that all of the organization’s networks are aware that we are in the “area of play.” A concierge seated at a “perch” by the door acknowledges us by name, and our name then appears on one of several flat screens set in the facing wall. The image on the screen of an enthusiastic banker beckons us forward. The exchange rapidly assumes a “meta” quality as the two of us begin discussing information we are simultaneously accessing on phone and tablet independent of the audiovisual software that connects us.
There are ITMs (the preferred transaction method of our locale) built into a lustrous natural wood wall to the right. Beyond it, past the hydration bar, defined by “living” movable wooden slat walls that contain snaking vines, we see several casually differentiated areas: a consultancy “cove” for semiprivate financial discussions with easy chairs and a coffee table; a more privately walled-off area with higher table and chairs, and, beyond these, two private, glass-fronted offices for completely confidential appointments. The central space is broken up by interactive standalone kiosks and multimedia merchandising elements, each of which loads the most appropriate dialogue topics with which to engage any known visitor within the branch. We expect to be able to interact on a custom personalized level with any piece of technology we choose with minimal security concerns. Our conversation with the image on the flat screen has transferred to SMS media with a third party now included—a consultant in one of the private offices, who is accessing our information via their PC as we walk past the living walls and hydration bar to meet with them face-to-face. We relax as we anticipate this face-to-face meeting; it is more secure, and there’s sometimes a need to connect emotionally over personal finances. In 2025, we still feel a little threatened when we see our most intimate property being displayed or discussed via technology like email, websites, or chat bots. Because despite being immersed in all this amazing technology, we are mortal, and we trust nothing more than another warm body with which we can literally shake hands. ■ Ian Hough is director of marketing for Solidus, a construction company specializing in branch transformation for the financial industry
Customers More Satisfied With Banks Than Credit Unions It’s a pyrrhic victory of sorts. Banks have higher customer satisfaction than credit unions but only because of increased dissatisfaction with credit unions. The American Customer Satisfaction Index’s Finance, Insurance, and Healthcare Report 2018-2019 shows nationally customer satisfaction with banks is down 1.2 percent to a score of 80 (on a scale of 0-100). Credit unions, though, saw an even bigger drop in consumer satisfaction. They were down
2.5 percent from 81.5 to a score of 79. Among banks, regional and community institutions still lead the pack despite a 1.2 percent drop to 83. However, national banks close the gap, up 1.3 percent to 78, placing them in a tie with super regional banks (down 1.3 percent) for the first time. This year, all four national banks are at or within a point of their recordhigh scores for customer satisfaction. Citibank surges 3 percent to the lead at 81, and Chase is second at 79, inching
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back 1 percent from its record high posted a year ago. Bank of America is next, up 1 percent to 77, followed by Wells Fargo, which rises 3 percent to 76. “Customers want mobile options, and big banks have the resources to deliver,” says David VanAmburg, managing director at the index. “As technology improves, so does customer satisfaction. The personalized service that’s the hallmark of smaller banks and credit unions may no longer be as critical to customers, especially a younger demographic.” Among super regional banks, BB&T leads after a 1 percent increase to 80. Last year’s leader, Capital One, dips 2 percent to 79, meeting PNC Bank (up 1 percent) and U.S. Bank (unchanged). Three banks match the category average with scores of 78: Citizens Bank (unchanged), Fifth Third Bank (up 4 percent), and Regions Bank (down 1 percent).
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B Y G E O RG E YACI K, S P E C I AL TO B A N K I N G N E W E N GL A N D
By Helping Those With Mental Health Issues, Banks Can Help All Customers
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psychiatry professor at Yale University is calling on banks and other financial institutions to make more of their products and services accessible to people with mental health issues. According to the National Alliance on Mental Illness, about 44 million Americans – or about one in five adults – experience a mental health issue every year. For them, “financial situations can be more complicated than they are for the rest of the population,” according to “Banking for All: Why Financial Institutions Need to Offer Supportive Banking Features,” a recently published report. It was headed by Dr. Annie Harper, an associate research scientist in Yale’s Department of Psychiatry. Harper’s report says, “Financial institutions are missing out on an opportunity to effectively serve the millions of Americans who live with a mental health disability.” The study “proposes that financial institutions offer supportive banking features in order to make their products and services more Dr. Annie Harper accessible.”
Three Needed Features
Specifically, the report recommends “three features that responsible financial institutions could easily implement: 1) customizable mobile banking notifications, 2) self-imposed spending limits on debit cards, and 3) view-only account access.”
“These features would both respond to the expressed needs of individuals with mental health disabilities, as well as comply with existing federal banking laws and regulations,” the report says. “In addition, these features will also appeal to a wide range of current and potential customers, such as young adults, individuals with disabilities, and older populations.” TD Bank, for example, offers an “age-friendly” account in which third-parties have varying degrees of access. “This not only demonstrates that the technology to enable those features already exists but that they have also gained traction among personal banking clients,” the report says.
Making Banks More Accessible
In an interview with Banking New England, Harper is quick to note that she’s not recommending that banks create products and services specifically for those with mental illness, and definitely not advising banks to market them that way. Rather, she says these products should be available to all customers. “I think what would make banking more accessible to people with mental illness are actually products that would be great for customers generally, like enabling people to put self-imposed spending limits on themselves, or having customized alerts based on certain types of spending behavior,” she said. “That’s something a lot of people would love. They would be good for everyone, not just people with mental illness. Some of these things don’t have to be seen as only for people with mental illness.” She uses the analogy of cutaway curbs to accommodate Issue One | January 2020 | BANKING NEW ENGLAND 31
“All of us don’t have mental illness, but all of us will be old one day and much of what we are recommending would also apply to the elderly. So I think there are ways to frame these services as good for everyone, whether it’s now or later in life.” –Dr. Annie Harper
people with wheelchairs. “We all have an easier time walking the streets because of cutaway curves that were designed specifically for wheelchairs,” she says. “It’s similar with banking.” “All of us don’t have mental illness, but all of us will be old one day and much of what we are recommending would also apply to the elderly,” Harper adds. “So I think there are ways to frame these services as good for everyone, whether it’s now or later in life.”
Satisfy ADA and CRA
Harper’s report noted that banks are required under the Americans with Disabilities Act to offer “reasonable accommodations” to their services to individuals with mental health disabilities. They also receive Community Reinvestment Act (CRA) Community Development credit for doing so. “This goes to show that there are external incentives for banks that actively strive to serve their under- and unbanked populations,” the report says. In addition to doing what’s right and legally required, it’s also good business, said Paul Hammer, recovery support specialist at the Yale Program for Recovery and Community Health. He and several banking, legal and mental health experts appeared with Harper at a panel discussion on the report before a standing-room-only audience at Yale in early November. Having such products that benefit all customers could give banks that provide them a competitive advantage, Hammer said. Also on the panel was Jorge L. Perez, commissioner of the Connecticut Department of Banking, which regulates state-charted financial institutions. While the department can’t force banks to offer these services, Perez said, it is responsible for making sure that they comply with applicable regulations, such as CRA and ADA. He said his agency’s main function in this regard is “educating” financial institutions about their responsibilities under the law. “This is not a topic that’s going away,” he said.
Model For The Nation
Harper said she is focusing her recommendations right now on local banks in New Haven “with the idea that if we can make something happen locally then it could be a model across the nation.” One of the largest banks in the country
32 BANKING NEW ENGLAND | Issue One | January 2020
– Wells Fargo – already offers a service that meets one of Harper’s suggestions: an account that allows the holder to assign another person to view it online but not make transactions. Kenneth J. Allison “The service can benefit everyone in general but certainly can be useful for people suffering with mental illness,” said Kenneth J. Allison, district manager for Wells’ Greater New Haven District. The no-fee service is available nationwide to all of the bank’s customers who use online banking. It gives a viewonly access option that an account holder can grant to anyone they would like to monitor the account and view transactions, but without the ability to make transactions. Account holders can remove access at any time.
Online Monitoring A Solution
Harper’s report noted that “most financial institutions routinely offer onlinemonitoring accounts for their commercial banking customers” already, yet consumer accounts usually don’t. So “the technology is out there,” she said. However, she does note that “smaller institutions are more limited by what their systems allow them to do. This is a challenge to some small banks.” Right now, applications from nonbank financial technology firms provide the most widely available option for people who want help managing their finances, but don’t want to give a third-party the kind of access and control associated with joint accounts or financial powers of attorney. Monzo, the U.K.-based fintech that recently opened an office in Los Angeles and plans to begin offerings its services to U.S. consumers this year, offers a set of services with individuals with mental health problems explicitly in mind. That includes what it calls “positive friction,” which makes it harder for people to make financial decisions they may regret later. Monzo’s philosophy, Harper says, is that “if they can serve people with mental health issues better, they can serve all customers better.” ■
B Y CA NDACE TA L MA DGE, S P E C I AL TO B A N K I N G N E W E N GL A N D
P ERSONNE L
THE EVOLVING TELLER
In The Digital Era, The Bank Teller’s Role Shifts And Expands
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ill the bank teller in the digital age ultimately be a sophisticated robot? That’s where the industry is heading, according to a PwC financial services technology trends report. For now, however, the shifting role of the human bank teller embodies the profound changes that digitization is bringing to banks of all sizes. The initial advent of online account access and then mobile banking have upended the teller’s role right along with the entire industry. With smart phones, “the bank is now in the palm of their (customers’) hands,” pointed out Honey Shelton, president of InterAction Training Systems of Humble, Texas. Shelton has been training tellers and other bank employees since 1983. Changes in the teller’s role have happened faster in banks serving large urban markets like New York City than smaller or rural markets, said Jim Burson, managing director of financial services industry consulting and research firm Cornerstone Advisors. But, Shelton added, community banks in smaller rural markets are now scrambling to catch up. Reduced Opportunities Digitization is reducing the opportunities for employment as a teller and prompting banks to close bank branches. The U.S. Bureau of Labor Statistics forecasts a 12 percent drop in the numbers of U.S. teller jobs between 2018 and 2028. And banks were operating 8.6 percent fewer branches at the close of 2018 than at the end of 2013, the FDIC reports. But fewer tellers in fewer branches is by no means the whole story. The role of the teller is evolving. Different institutions use varying titles for the new role, such as universal banker or
Issue One | January 2020 | BANKING NEW ENGLAND 33
Tellers now need a set of skills to enhance the customer experience. Tellers and managers are trained not to sell customers what they don’t need, but instead to look for ways to make the customer experience better. That way of thinking “can be very foreign to a bank.” – Honey Shelton, InterAction Training Systems branch associate. But there is a common thread. Tellers are now doing a lot more for customers than taking in cash deposits and handing out withdrawals. “The complexity of the teller’s job has increased significantly,” said Christopher Maher, chairman/CEO of OceanFirst Bank, which retrained more than 500 frontline employees in about 65 branches. Those who become certified as a universal banker get a pay boost. Training is key, Shelton emphasized. Universal bankers or branch associates may be called on to handle something complicated like opening a partnership account, while managers now chip in to take deposits. Shelton said that since such tasks are not routine, the bank should have detailed instructions readily available to the branch associate or universal banker to consult in such instances. More Certification & Training Shelton also noted that the expanded teller role also involves keeping a close watch for signs of fraud. Then there is assisting customers with technology snafus. OceanFirst also certifies tellers as digital bankers capable of guiding customers through issues with popular thirdparty financial apps like Venmo, Maher said. Tellers now serve customers remotely via video from centralized locations. OceanFirst closed or consolidated roughly 40 branches over the past three years, and invested some of the savings into training and customer care centers, Maher explained. A lot of banks are moving
tellers to centralized offices, Shelton said. Tomkins Mahopac Bank, headquartered in Putnam County, N.Y., began training its tellers to become branch associates three years ago, said Carol Schmitz, senior vice president/community banking manager. Tomkins Mahopac takes advantage of digital tools to like texts and emails to keep customers informed. It uses voice calls from branch associates to talk to them about their financial needs and discuss products that can help them. Most Tomkins Mahopac tellers welcomed the new career opportunities, but a few found it hard to adapt to relationship phone calls, Schmitz added. And the teller’s digital age role is all about relationships. So much so that the physical barrier of the line is going away, Burson said. Instead, tellers are morphing into concierges and greeters who circulate among customers, talking with them, looking for opportunities to nurture relationships and watching for signs of fraud. Patriot Bank N.A., Stamford, Connecticut, began the process of redesigning its nine branches and reshaping teller roles two years ago, according to Fred Staudmyer, the bank’s executive vice president/chief administrative officer. The first step was to introduce interactive teller machines (ITMs), which offer live tellers via video at its branches plus at Westfield Trumbull shopping center in Trumbull, Connecticut, and at Housatonic Community College in Bridgeport, Connecticut. These touch screen
The U.S. Bureau of Labor Statistics forecasts a 12 percent drop in the numbers of U.S. teller jobs between 2018 and 2028.
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ITMs enable customers to conduct virtually all the business they could transact at a teller counter inside a branch. The next step was to test cash recyclers in its branches to manage deposits and withdrawals more efficiently. These machines free up teller time for higher value activities like cross sales, opening accounts, and telemarketing. Potential In Visitors Indeed, those fewer and less frequent branch customer visits still hold a lot potential for banks that branch associates or universal bankers are now tasked with uncovering. The Federal Reserve’s latest triennial Survey of Consumer Finances showed that those who still visit bank branches the most tend to be older, wealthier, and self-employed. “This makes the teller a really valuable employee,” Shelton pointed out. One challenge for the industry in the changing role of the teller is recruiting, Burson said. The skills needed for new teller role are much greater than the traditional entry level position. Banks now must find, attract, and
retain the right kind of talent to fill the roles of universal banker or branch associate. Tellers now need “a set of skills to enhance the customer experience,” said Shelton. She trains tellers and managers not to sell customers what they don’t need, but instead to look for ways to make the customer experience better. That way of thinking “can be very foreign to a bank,” she added. In order to be truly successful, branch associates or universal bankers also need a manager to model the behavior the bank wants and to coach them continuously, Shelton said. Patriot Bank retrained and renamed its tellers and head tellers as service associates and senior service associates, Staudmyer added. Patriot Bank senior service associates have been trained to open accounts, send ACHs and wires, and conduct outbound telemarketing. Several of Patriot Bank’s senior service associates have enhanced their careers with training and are now working in its banking center, deposit operations, and SBA loan operations. Taking on new responsibilities creates upward mobility and improved performance, leading to pay increases. ■
Eastern Bank Honors Ferguson With 2019 Social Justice Award Eastern Bank honored Ronald F. Ferguson, PhD, of the Harvard Kennedy School and founder of The Basics, with its 2019 Social Justice Award. The award recognizes community leaders who have achieved outstanding impact in addressing social justice issues. Ferguson was honored for his decades of work addressing achievement gaps that form in children by the age of two, an issue that coincides with Eastern Bank’s current commitment to enriching early childhood development in its philanthropy and advocacy as part of a broader strategy for addressing income inequality and workforce issues. As an MIT-trained economist with more than 30 years on the faculty at the Harvard Kennedy School, Ferguson’s teaching, research, and writing address economic, social and educational challenges with an emphasis on helping disadvantaged communities. His research inspired the creation of The Basics, a campaign for early childhood parenting. “Ron Ferguson’s research, teaching and advocacy have raised awareness about the criticality of children’s life experiences, and the disparities that begin to show up in the earliest years of life,” said Bob Rivers, chair and CEO of Eastern Bank. “We thank Ron for his important work and honor his contributions in helping children and families across our community achieve their best outcomes.”
Quincy Miller, vice chair and President, Eastern Bank; Wendell Knox, immediate past lead director, Eastern Bank, and a founder, The Boston Basics; Ronald F. Ferguson, PhD, of Harvard Kennedy School, founder of The Basics, and 2019 Social Justice Award honoree; Nancy Huntington Stager, president and CEO, Eastern Bank Charitable Foundation; and Bob Rivers, chair and CEO, Eastern Bank.
The Social Justice Award is presented annually. Now in its 31st year, the annual celebration is attended by more than 1,000 business and nonprofit leaders to recognize their impact addressing vital needs in our communities.
Issue One | January 2020 | BANKING NEW ENGLAND 35
31 Named 2019 Women of FIRE in New England Thirty-one women from throughout New England were honored as the 2019 Women of FIRE by Banking New England magazine and American Business Media at The Verve Crowne Plaza in Natick, Massachusetts. The keynote speaker was Kristina Tsipouras, a 34-year old serial entrepreneur and Massachusetts native who saw a need for a fresh new networking group in town and founded Boston Business Women. The FIRE (Finance, Insurance and Real Estate) sector has emerged as a keystone of the New England economy,
2019 Women of FIRE Honorees
Cindy Angelini, The Hartford Ellen Anselone, Finegold Alexander Architects Debi Benoit, Benoit Mizner Simon & Co. Mindy Bero, Hickok & Boardman Lisa Berube, Essex Savings Bank Kati Brigham, McCall & Almy Betsy Collins, Peabody Properties, Inc. Roxann Cooke, JP Morgan Barbara Curto, Chelsea Groton Bank Sandy Dawson, Pullman & Comley, LLC Michelle Dwyer, Franklin First Federal Credit Union Natasha Espada, Studio Enee Francesca Federico, Twelve Points Wealth Michelle Hatch, blumshapiro Kathleen Henry, Eastern Bank Jane Kaplan Peck, Kaplan Construction Kathleen Kenealy, Boston Private Bank Pam Labreche, Navigant Credit Union Lauren Liss, MassDevelopment Jennifer Marino, Rockland Trust Angie O’Donnell, 3D Leadership Group Barbara Oddo, Lincoln Property Company Barbara Palmer, Southbridge Credit Union Samantha Pause, Mascoma Bank Katharine Schmitt, JP Morgan Private Bank Sheryl Starr, Bernkopf Goodman Rebecca Thomas, Triangle Credit Union Kathryn Underwood, Ledyard National Bank Keri Watkins, Watkins & Associates/William Raveis Maureen Wilkinson, HarborOne Bank Ericka Winstead, Eastern Connecticut Savings Bank 36 BANKING NEW ENGLAND | Issue One | January 2020
transforming the knowledge, wealth and dreams of the world’s most ambitious visionaries into reality. As more and more women rise to the top of businesses and institutions in this sector, there is a growing need to shine a light on their achievements to inspire others. “Banking New England identifies the most talented, the most ambitious, the most innovative and the most philanthropic Women of FIRE. Women of FIRE recipients are chosen through a very selective process,” said Vincent M. Valvo, publisher and editor of Banking New England.
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Worry: The Unspoken Foundation of Bank Customer Dissatisfaction
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esearch shows that bank customers worry about the interactions with their banks and other financial institutions more than customers in other consumer market segments. Why? Because the stakes are higher. For example, it doesn’t matter if you are late to pick up your dry cleaning. You won’t be charged a late fee. Or, if you buy coffee at the local coffee shop, you won’t be rejected because of a low credit score or missed information in your order. When it comes to banking, however, there are a myriad of worries, such as funds being lost or data being hacked, fees being charged, unpredictable wait times, administrative red-tape, and confusing, complicated processes. And, it doesn’t stop there. If you have ever spent time listening to incoming call center service calls, you would have heard customer concerns such as, “I am calling to make sure that my ATM deposit was credited to my account.” Additionally, customers can worry about more trivial things in their day-to-day interactions with their banks such as, “Did I pick the fastest teller line?” or more profound situations like, “Did I make any mistakes when I filled in my mortgage application?” It’s enough to give anyone a headache at best, an ulcer at the worst. TYPES OF WORRIES Customer worries come in a variety of forms and intensities. They can, however, be categorized, analyzed, and managed. Here is a starter list of “worry categories” to help bankers understand the customer experience and how the bank’s processes, practices and policies impact the customer’s well-being.
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• Transaction Completion, e.g., “Did my transaction post?” • Process Compliance, e.g., “Did I fill in the form correctly?” • Wait Time, e.g., “How long will I hold until the next agent picks up my call?” • Customer Choice, e.g., “Did I pick the right product?” These questions signify worry. Worry is a negative feeling. The source of the worry, in this case the bank, is subconsciously blamed for the negative feeling. When your bank causes worry, or doesn’t take steps to mitigate it, your customers develop negative feelings about your bank. A MISSED OPPORTUNITY Why is “worry” generally not recognized, discussed or addressed by bankers? Because worrying is often a feeling that exists in the background. Rarely do customers articulate it in their complaints or voice it when asked general open-ended questions about their experience. Bankers are busy enough addressing the stated problems of customers that they have no time, interest, or appetite to probe for the unstated worries. Instead, banks measure “first call problem resolution,” but they do not explore “worry identification and resolution.” If it’s silent, it’s not measured. If it’s not measured, it’s not recognized, discussed, or addressed. And, if it is not even verbalized, why should banks care about it? The reason is that this sense of “worrying” degrades the customer experience rapidly and has a cumulative impact. Because it is not an instant feeling, it can last for minutes, hours, days, months, or longer. It might not be verbalized, but it is real. You ask customers to stay with your bank
forever; to buy more products, open more accounts, refer the bank to their friends and family. Their responsiveness is greatly affected by their experience. Happy customers will stay long-term, open more accounts, refer the bank to others. Perpetually worried customers will not. TACTICS THAT REMOVE OR MITIGATE WORRIES There is tactical path that systematically can identify and remove or mitigate these worries. The first step is to understand what customers worry about when they interact with the bank. Become knowledgeable about the nature of the worrying and what action (or inaction) of the bank is fueling the worry. This phase is called “worry mapping.” There are two components to successful “worry mapping.” 1. Conduct analyses of bank processes, policies, and communications to develop hypotheses of what is causing customer worries. 2. Conduct customer research to understand what customers actually worry about and validate the hypotheses generated based on the analyses above. There are two types of customer research that are relevant in this case: passive and active. “Passive” refers to listening to recorded calls (or using speech analytics) and reading customer feedback (or using text analytics). In both cases, the bank has to read (or listen) between the lines to identify the underlying worry. “Active” requires asking questions of customers and frontline employees. The second step in worry mapping is to identify what modifications to processes or information flows can mitigate the worries. In some cases, there is something the bank does (e.g., a process, a policy) that can be eliminated or modified. In other cases, a new process step or a new information flow needs to be added or modified. THE ROLE OF THE FRONT LINE It is essential to train the front line to develop the skillset to probe for underlying worries. Part of the training includes developing of targeted questions to ask or even pre-emptively providing answers to questions that are representative of customer worry. Today’s front line is far more likely to be serving customers who have problems to resolve, need advice, are opening a new account, or require additional information. These are higher worry-propensity interactions. The front line in a digitally transformed world, where mundane transactions have migrated to other channels, have a higher role and responsibility to manage customer worries. Michael Billia is a senior vice president with New Jerseybased Investors Bank. He says, “It’s all about listening to what the customer is saying, not drawing conclusions until you hear the whole story. Empathize with them and try to find a solution.” Investors Bank trains employees through a program called Customer Connect, which encourages front line employees to have conversations with customers (or potential customers) to find out how they can help and to uncover the questions civilians might have about the banking process. There are tricks to the trade, says Billia. “I think customers
that are nervous are reserved and don’t ask a lot of questions. One of the things bankers need to do better is develop a rapport through an open conversation to make the customer feel at ease, also to make them understand that no question is stupid.” Just listen—really listen to what is being said or is going unsaid. “We tend not to listen to the full concern and try to answer questions before we really understand what the [issue] is,” Billia notes. When it comes to banking and financial matters the queries are often multifaceted and can head off in several directions. According to Billia, “It starts with having great conversations. Listening and letting the customers know that we are there to help them, not just to sell a product or a service.” THE IMPACT OF DIGITAL TRANSFORMATION Digital transformation is a powerful tool to assuage customer worries for two reasons. First, it allows for two-way information flows. Deposits and payments can be confirmed, and alerts can help prevent undesired outcomes. The amount, frequency, customization, personalization, and ease-of-access of information in a digital environment transforms the customers’ banking experience. Second, digital transformation allows for real-time interactions. Credit applications, even for small businesses, can be instantly decisioned. Mobile check deposits can be instantly checked (e.g., for missing or stale dates) and accepted in real-time. Expected wait times for a chat session are visible, so gone is the worry of “how long will I hold for”? The content of the chat session is emailed to the customer providing a record of the conversation as opposed to yesteryear’s “do you remember who you spoke with who might have told you that?” TURN WORRY MANAGEMENT INTO A COMPETITIVE ADVANTAGE Senior management must drive the cultural transformation of the bank in order to identify and eliminate customer worries. Below the C-suite, executives who will (and should) find themselves in the middle of such efforts include heads of retail, it/ops, digital transformation, and customer experience. Banks that proactively address and manage their customers’ “worries” have more satisfied and more loyal customers. That’s because a “worry-free” bank creates fewer negative surprises to its customers. The worries about (and the occasional) negative outcomes damage the feeling of trust which is the foundation of a relationship with a financial institution. A bank that can avoid these self-inflicted wounds will have happier customers who will be less likely to defect and more likely to provide referrals. Net promoter scores should rise dramatically. The C-suite and bank boards will value the positive results to customer experience and the impact to shareholder value creation. ■ Theo Moumtzidis is managing director of Delos Advisors, a NY-based consulting firm that specializes in working with financial institutions in the U.S. and abroad. For additional information, send email to theo.moumtzidis@delosadvisors.com.
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Banking New England publishes a weekly digital newsletter that rounds up the latest news and information about, you guessed it, banking in New England. Here are a few stories from recent editions. If you would like to subscribe to, share your news, or advertise in the Banking New England newsletter, contact us at info@ambizmedia.com.
BANGOR SAVINGS ANNOUNCES MERGER WITH DAMARISCOTTA B&T Bangor Bancorp, MHC, parent company of Bangor Savings Bank, and Maine-based Damariscotta Bankshares Inc., parent company of Damariscotta Bank and Trust Company, today jointly announced their merger. Both Damariscotta entities will operate under the Bangor name. Under the terms of the transaction, shareholders of Damariscotta will receive $27 in cash in exchange for each share of Damariscotta common stock for a transaction valued in aggregate at approximately $35 million. The consideration represents approximately 185 percent of Damariscotta’s tangible book value per share as of Sept. 30, 2019. When finalized, the merger will give Bangor Savings new branch locations in Belfast, Damariscotta,
New Harbor, Union, and Warren, strengthening the bank’s position in Maine’s midcoast region. Pending regulatory and Damariscotta shareholder approvals, Bangor Savings Bank intends to complete the transaction in the second quarter of 2020. After completion of the merger, the combined entity is expected to have $4.8 billion in assets and more than 60 branch offices throughout Maine and New Hampshire. TORRINGTON SAVINGS NAMES VANOTTI PRESIDENT Torrington Savings Bank in Torrington, Connecticut, has announced the appointment of Lesa A. Vanotti as the institution’s new president & COO. She will be the 14th president in the bank’s 150-year history. The announcement comes as part of a nine-month transition plan that
40 BANKING NEW ENGLAND | Issue One | January 2020
will see John E. Janco Sr., who has been president & CEO since 2014, retire as CEO as of Sept. 30, 2020, with Vanotti becoming the President & CEO on Oct. 1, 2020. The bank’s board of trustees began its search for a successor earlier this year upon the retirement decision by Janco. Chip Booth, chairman of TSB’s Board of Trustees, noted, “after a comprehensive CEO search process, we are pleased our only internal candidate, Lesa Vanotti, rose to the top of the field. Her accounting background and her last six years as CFO helped groom her skills in many different areas of the bank. As a seasoned trustee, it is very gratifying to watch an employee grow and excel over the years.” Vanotti, who most recently held the role of senior vice president, treasurer and CFO, joined Torrington Savings Bank as an accounting assistant in 1996. During her tenure
she’s held titles of accounting officer, assistant treasurer, and vice president & controller. CAMBRIDGE BANCORP AND WELLESLEY BANCORP ANNOUNCE MERGER Cambridge Bancorp, the holding company for Cambridge Trust Company, and Wellesley Massachusetts-based Wellesley Bancorp, Inc., the holding company for Wellesley Bank, have entered into a definitive agreement that will have Wellesley merge with and into Cambridge in an all-stock transaction. The deal is valued at approximately $122 million. According to an announcement from the banks, as of Sept. 30, 2019 Wellesley had approximately $986 million of total assets, $833 million of gross loans, $759 million of deposits, and $363 million of wealth management assets. Based on financial metrics as of Sept. 30, 2019, the combined company is expected to have over $3.8 billion in assets, $3.0 billion in gross loans, $3.2 billion in deposits, and $3.6 billion of wealth management assets upon completion of the transaction. On a pro forma basis the transaction is expected to be approximately 4.4 percent accretive to Cambridge’s 2021 earnings per share and approximately 1.6 percent dilutive to tangible book value per share with an expected earnback period of approximately 2.2 years. CITIZENS BANK’S VAN SAUN EARNS TOP HONOR Bruce Van Saun, CEO of Providenceheadquartered Citizens Bank, has been named the top banker in America. The accolade comes for his work in turning the regional bank away from the precipice of irrelevancy. American Banker said in an article naming Van Saun its banker of the year that a lot has changed in six years. Under Van Saun and his management team — and thanks in no small part to its well-timed spinoff from RBS — Citizens today is a thoroughly transformed company. Its commercial loan portfolio is growing faster than the industry average as the bank has moved into new markets, invested in new business lines and added a host of new feebased services that have helped it attract larger, more sophisticated corporate clients. Home and consumer lending are
thriving too, following a fortuitous acquisition of a mortgage lender, the expansion of its student lending program and a bold foray into pointof-sale financing for products such as iPhones, home security systems and, most recently, Microsoft’s Xbox. And Citizens, once a tech laggard, is now seen as an innovator. A standalone, digital-only bank it launched in mid2018 has already amassed nearly $6 billion of deposits and attracted customers in all 50 states. Read More
Credit Union’s Bridgewater branch. Both teams have worked together seamlessly and will continue to do so. The merger will not result in any layoffs or the elimination of any positions.
MERRIMACK VALLEY CU & OCEAN SPRAY EMPLOYEES FCU APPROVE MERGER PROPOSAL Merrimack Valley Credit Union and Ocean Spray Empoyees Federal Credit Union voted to approve the merger of the two organizations. “We are thrilled that the members of both organizations recognized the benefits to merging Merrimack Valley Credit Union and Ocean Spray Employees Federal Credit Union,” said John J. Howard, President and CEO, Merrimack Valley Credit Union. “We are very excited to welcome Ocean Spray Employees Federal Credit Union members to our family.” For the past two years, Ocean Spray Employees Federal Credit Union has shared a location with Merrimack Valley
BRIDGEWATER SAVINGS & MANSFIELD BANK ANNOUNCE MERGER The boards of directors of Bridgewater Savings Bank and Mansfield Bank have signed a merger agreement to join the two banks into a single, larger and better capitalized new entity. The new bank will retain a mutual form of ownership. Peter Dello Russo, current president and CEO of Bridgewater Savings Bank, will become CEO, and Meg McIsaac, current president and CEO of Mansfield Bank will be president of the merged institution. The banks are in the process of obtaining necessary approvals, with the goal of having all in place by the second quarter of 2020. Dello Russo said, “By joining forces, we will create a very well capitalized bank with nearly $1.2 billion in assets, giving us the financial strength to successfully meet the needs of our employees, customers and communities in the future. In short, we are better together.” ■
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Issue One | January 2020 | BANKING NEW ENGLAND 41
The 2019 Leadership Event for Financial Women October 25, 2019 | Hotel Viking | Newport, Rhode Island
More Than 200 Attend New England Women in Banking
M
ore than 200 banking professionals from across the region attended the 8th annual New England Women in Banking October 24-25 at the Hotel Viking in Newport, Rhode Island. The highlight of the event was the presentation of the Sandra J. Pattie Distinguished Leadership Awards to Gilda M. Nogueira, president of CEO of East Cambridge Savings Bank, and Cynthia C. Merkle, president and CEO of Union Savings Bank. Both women were greeted with standing ovations when accepting their awards. They were honored for their significant
42 BANKING NEW ENGLAND | Issue One | January 2020
contributions to banking and the personal examples they have set for women in banking throughout their careers. One of the focal points of the conference was the morning keynote address by Roxann C. Cooke, Consumer & Wealth Management Regional Director, Chase Bank. Her inspirational talk touched on growing up in Jamaica, sometimes having no shoes to wear to school, and her rise to a top position in banking. She said her professional ascent was made possible by mentors like Cynthia Merkle. Donna Brazile, political strategist and former chair of the Democratic National Committee, gave the closing
The 2019 Leadership Event for Financial Women October 25, 2019 | Hotel Viking | Newport, Rhode Island
keynote presentation. Her humor-filled talk focused on getting women involved in politics, whether it involves running for office or volunteer to serve on boards and commissions. She inspired the audience to embrace their political potential. Other speakers at the event were Dr. Lindsey Piegza, Chief Economist, Managing Director, Stifel Financial Corp.; Darla Day, Aerialist, Entrepreneur, Philanthropist;
Karen Kirchner, Ellen Keithline Byrne and Denise D’Agostino of Her New Standard; and Mary Kay Scully, Trainer, Consultant, Genworth Mortgage Insurance Co. The conference kicked off with a cocktail party on Thursday evening, presented by American Business Media and Banking New England. Women in Banking was presented by Data Facts and sponsored by Birchwood Credit Services Inc. ■Issue One | January 2020 | BANKING NEW ENGLAND 43
ON T HE MOVE
TRY TO KEEP UP LOCAL PROFESSIONALS MAKING THEIR MARK IN NEW ENGLAND BANKING
People’s Credit Union Appoints Daly President And CEO
Edward T. Lopes, Jr., chairman of the Board of Directors of People’s Credit Union in Middletown, R.I., announced the appointment of Sean Daly as president and CEO. Daly will succeed departing president and CEO Ellen Ford. Lopes said, “With almost 30 years of experience in banking and other diverse industries, Sean has proven executive leadership capabilities which will set us up for continued growth and success.” Daly previously served as chief financial officer and head of technology for Camden National Bank, a $2.5 billion publicly traded community bank headquartered in Camden, Maine. In this role, Daly was recognized in 2007 by USBanker Magazine as one of the Top 10 U.S. CFOs. Most recent to joining People’s, Daly served as CFO for Provant Health Solutions, a wellness services provider located in East Greenwich, R.I. He also previously held the position of president and chief operating officer at IDT911 (since rebranded Cyber Scout), an international identity theft and data risk management company. Daly holds a bachelor’s degree in Business Administration from Bryant University. A native of Portsmouth, Rhode Island, Daly has been involved in the state’s arts and humanities, including serving 26 years on the Board of AS220, an internationally recognized creative arts organization in Providence. He and his wife, Marya, have two adult children and make their home in Fairhaven, Mass.
Bartholomew Joins Camden National As SVP, Business Banking Leader
Camden National Bank announced that Sven Bartholomew has joined as Senior Vice President, Business Banking Segment Leader. He brings more than 14 years of experience developing and leading teams, cultivating new relationships, and acting as a trusted financial partner to many Maine businesses and government entities. In his new role, Bartholomew will lead a team which supports and advises business customers across the bank’s
footprint. “Sven’s leadership style and commitment to community make him an excellent fit for Camden National Bank,” said Trish Rose, Executive Vice President of Retail and Mortgage Banking. “Bringing deep experience as a guide and partner for businesses of all kinds, while also developing new relationships, Sven will be instrumental to our business
44 BANKING NEW ENGLAND | Issue One | January 2020
banking segment.” Bartholomew previously served for 14 years at Bangor Savings Bank, most recently as Senior Vice President and Payroll Sales Manager. Bartholomew grew up in Western Maine, and he currently resides in Brewer, Maine with his family. He serves as a Governor-appointed Trustee for the University of Maine System and as Board Member for Eastern Maine Development Corporation. Bartholomew received his Bachelor of Arts in Business Economics from the University of Maine at Farmington and his MBA from Husson University.
Pender Hired At Hanscom FCU as Chief Human Resources Officer
Massachusetts-based Hanscom Federal Credit Union welcomed Kristine Pender to the credit union as its chief human resources officer. She is charged with directing and overseeing all HR-related responsibilities as well as managing the Learning and Development department. Pender has extensive experience with talent attraction, learning and development, performance management, and organization design. Prior to joining Hanscom FCU she was with GCP Applied Technologies where she served as senior director of human resources, responsible for HR partnership to the Executive Team, the Americas region, and Talent programs for the global organization with HR responsibility for approximately 1,000 employees.
Jamison Named VP At Katahdin Trust Co.
Katahdin Trust Company, a community bank founded in 1918 serving northern Maine and the greater Bangor and Portland regions, has welcomed Justin Jamison as vice president, commercial services officer. In this role, Jamison will be based in Bangor and be responsible for developing and managing new and existing business lending relationships. He will work closely with the commercial services team statewide. He will also assist with risk analysis, monitoring and managing identified risks in the loan portfolio. Jamison holds his master’s degree in business administration with a focus in finance from the Maine Business School at the University of Maine. He is also a 2010 graduate of the Northern New England School of Banking. Prior to joining Katahdin Trust, he was vice president, commercial relationship manager for People’s United Bank.
BankNewport Announces Senior Credit Analyst Appointment
Essex Savings Bank Employee Announcements
BankNewport announced that Adam A. Jrida, of Pawtucket, Rhode Island, has been appointed vice president, senior credit analyst. He will be responsible for performing credit analysis and underwriting of all commercial loan requests, including credit risk monitoring and annual loan reviews. Adam joins BankNewport from Santander Bank US in Providence where he served as credit officer. Formerly he was a credit analyst with Bank of America in Boston, Massachusetts. Adam earned a Bachelor of Arts in English from Rhode Island College in Providence, and he holds a Master of Business Administration in Accounting from Johnson & Wales University.
Boston Federal Reserve Promotes Two
Gregory R. Shook, president & CEO of Essex Savings Bank, announced the following promotions: Donald Beckwith was named senior vice president, chief credit officer. The newly created position will help to build new business and ensure the bank’s lending portfolio quality is maintained. Beckwith joined the bank in June 2002 as vice president, chief lending officer. His prior experience includes over 45 years in banking along the shoreline. Beckwith has managed virtually all aspects of lending in both the commercial and consumer arenas while balancing these duties with loan portfolio management and compliance. He holds a BS from the University of Connecticut and currently resides in North Haven with his wife. Diane Arnold was promoted to senior vice president, chief lending officer from vice president, senior commercial loan officer/ senior loan administration manager. Arnold joined the bank in January 2002 as an assistant vice president/commercial loan officer. Arnold began her career as a teller quickly rising to the role of credit analyst prior to joining the bank. Arnold earned her Bachelor of Science degree in Economics from Quinnipiac College and is a 1990 graduate of the Connecticut School of Finance and Management. She and her husband are residents of Ivoryton. ■
The Federal Reserve Bank of Boston promoted two officers to new positions: Jackie Palladino, to executive vice president and chief administrative officer, and Alan Bloom, to senior vice president and business integration lead for the FedNow initiative. Palladino has spent more than 20 years in the Boston Fed’s Supervision, Regulation & Credit group evaluating the condition of banking organizations located in New England, analyzing mergers and acquisitions, and managing the discount window, a central banking lending program for depository institutions. In 2011, she began overseeing a number of key corporate functions at the bank, including human resources, communications, corporate strategy and risk, and corporate affairs. In her new role as chief administrative officer, Palladino is responsible for the day-to-day administration of the Boston Fed. Bloom has been a key contributor to the Federal Reserve System for more than 38 years. Bloom started his career at the Federal Reserve Bank of New York before joining the Boston Fed in 1987. He has held a variety of positions with increasing responsibility, most recently serving as chief technology officer in the Federal Reserve’s Financial Support Office. In his new role, Bloom will be responsible for the integration of the Federal Reserve’s real-time payments Drive Revenue service, FedNow, into the Federal Reserve’s payments and financial Control Costs ecosystem. This includes coordination of new and modified interfaces to and Improve Performance from partner application systems, as well as changes to policies or procedures in other business areas that are a result of FedNow.
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Issue One | January 2020 | BANKING NEW ENGLAND 45
WORKERS WANT TO KEEP IT CLEAN Banking New England, in conjunction with its sister publications Banking Mid Atlantic and Banking New York, polled its readers on this question: “Which of these perks would you like?” The answer choices were:
c c c c
28%
PAID DAY OFF TO GRIEVE
26%
BOOK ALLOWANCE
13%
FREE BEER FRIDAYS
Dry cleaning services Day off to mourn a pet Free beer on Fridays A Kindle with a book allowance
It appears that our readers find free dry cleaning to be the most desirable perk their bank or credit union could offer them. Almost one-third of our readers expressed an interest in this benefit being provided. Coming in at second place was pet mourning. Slightly more than 28 percent of our readers would welcome a paid day off to grieve after a beloved dog or cat passes. About one-in-four readers (26%) have a literary bent and would enjoy receiving a Kindle with a book allowance. Our readers mostly don’t want to mix IPAs with work. Only 13 percent favor free beer Fridays at work. ■
Have an issue you would like to see addressed in a survey? Or want to subscribe to the Banking New England eNewsletter, contact us at editorial@ambizmedia.com.
46 BANKING NEW ENGLAND | Issue One | January 2020
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