RALEIGH, NC — How are rapid technological innovations changing the banking industry? This question anchored my conversation with Neil Henderson — Head of Business Advisory, Macquarie Bank, Jonathan Holman — Head of Digital Transformation, Santander UK and Elizabeth Dobers — EVP, Executive Director, Business Banking, BBVA Compass at nCino’s annual nSight conference.
I’m working on a post that summarizes my time at this event. But I’d be remiss not to thank nCino’s team for inviting me to speak on the Current State of Global Banking. What a a tremendous job of bringing together hundreds of representatives from global enterprise banks, regional and community banks and credit unions to discuss trends in financial services and explore the power of the cloud. My thanks to Pierre, Shelby, Ahron, Josh, Pullen, and many more for your hospitality these past few days!
Creativity and collaboration took center stage at Bank Director’s Growing The Bank conference this Monday and Tuesday at the Four Seasons Resort & Club at Las Colinas in Irving, Texas. There, leadership teams from banks, non-banks and financial technology companies alike focused on opportunities to grow revenue, deposits, brands, market size and market share through innovation and collaboration. Below, a few of the photos taken for us by John Sloan of Foxtrot Photography.
Jill Castilla, President & CEO, Citizens Bank of Edmond and Jay Tuli, Senior Vice President, Corporate Development, Leader Bank, National Association
Thomas Jankovich, Principal & Innovation Leader, US Financial Services Practice, Deloitte Consulting
Putting into practice what Schatzie Brunner suggested
Mika owning the podium
Joe Bartolotta, EVP/Strategic Partnerships, Eastern Bank
Steve Powless, CEO, Computer Services, Inc.
Shawn Ward, CEO & Co-Founder, Geezeo (and fellow RedSox fan)
Thanks to Rebecca – and Jackie (her first conference with us!)
Nima Ghamsari, CEO & Co-Founder, Blend
a personal favorite – moderating our point/counterpoint session
Proud of our team’s efforts — Laura Schield runs our events and she and the team did an awesome job!
Trying to “get big” – based on our recent two-day workshop
Laura Proffitt and Mika Moser doing what our team does best
“Super” Mario Garcia, Chief Experience Officer, Nymbus
Great to hear from Jim McAlpin Jr., Partner, Bryan Cave LLP
we so very appreciate the 240+ that joined us in Dallas
Bank Director magazine’s editor, Naomi Snyder
Digging the FinXTech signage that joined the BD family!
Josh Glover, SVP Community & Regional Financial Institutions, nCino
omg, our Publisher, Kelsey Weaver, trying to “get big” too!
Talking the future of bank branches with fellow college baseball player, Brian Read, Executive Vice President, Retail Banking, Umpqua Holdings Corp. and Umpqua Bank
Our Chief Brand Officer, Michelle King
For more on the issues and ideas surfaced throughout the event, check out BankDirector.com and FinXTech.com.
You might think every bank CEO I meet wants to talk about buying another institution; truth-be-told, some recognize that tying up with another makes a lot of sense. So this post looks at why now may be the right time for a bank’s CEO and board to consider a sale. It plays off the idea that in many markets, organic growth options are limited and times are tough for banks, especially those under $1Bn in asset size.
By Al Dominick, President & CEO, Bank Director
Over the past three years, a number of bank executives and board members have struggled with whether to buy or sell their bank — or pursue growth independently. Over the same time, Bank Director has welcomed more than 1,300 bankers — from more than 500 financial institutions — to our annual M&A conference to explore their short- and long-term options.
This year, those numbers go up in a BIG way. Indeed, we have 600 bankers from 300+ banks joining us at the Arizona Biltmore for “AOBA” this upcoming Sunday through Tuesday. To me, this signals that more potential buyers & sellers are getting off the sidelines and into the bank merger and acquisition game. So in advance of Bank Director’s 22nd annual conference, here are five challenges that a bank’s CEO and board might want to consider.
- Peer-to-peer lenders, credit unions and some — not all — FinTech startups either are (or will be) fierce competitors to community banks. In addition, non-bank giants in technology, retail, media, entertainment and telecom are making noise about entering banking.
- When margins decline, bankers try to compensate by improving operational efficiencies. While slow growth + strong cost controls may allow for short term survival, such an equation doesn’t bode well for the long-term viability of many institutions where investors expect more significant gains.
- The pressures prompting larger banks to innovate — sluggish loan demand, depressed revenue, higher compliance costs — are the same ones that will continue to force smaller banks to pursue a sale.
- Let’s face it: the typical bond between a bank and a customer is is not personal nor very strong and the absence of real customer loyalty undermines the traditional business model most banks operate from (*and yes, I know that banks with dedicated customer bases enjoy significant advantages over any potential competitors. But let’s be honest about how dedicated such customers really are).
- Finally, at many community banks, older management teams and a dearth of local talent mean there may be no one to hand over the reins to in the coming years.
Now, it has been said that business is not about longevity, it is about relevance. So as Bank Director’s team continues to gear up for this year’s Acquire or Be Acquired conference, these five questions merit serious conversation and consideration both leading up to, and at, our 22nd annual event. For those not able to join us — but interested in following conversations such as these — I invite you to follow me on Twitter via @AlDominick, the host company, @BankDirector, and search & follow #AOBA16 to see what is being shared by (and with) our attendees.