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CBA Third Quarter 2020
QUARTERLY
The Official Magazine of the Connecticut Bankers Association
THRIVING IN
UNCERTAIN
TIMES
IN THIS ISSUE:
From Survive to Thrive
Planning for the Future — Is it Laughable?
Looking Past the COVID-19 Economic Crisis
UNMASKING OUR HEROES! "When I look at our GSB team, I see heroes of a different kind. I see essential employees who have gone above and beyond to help our customers know they are not alone as they navigate what this “new normal” will mean for them. I am proud and appreciative of our team members and their devotion to our community." ~ TIMOTHY P. GEELAN, PRESIDENT & CEO
THIRD QUARTER 2020
Table of Contents
F E AT U R ES
Mission
The mission of the Connecticut Bankers
Association is to represent the financial
7 From Survive to Thrive
Thomas J. Long, Founder and Principal, The Long Group
institutions in the state of Connecticut
and to serve as the voice of its members
Collaboration Strengthens Banks —
in matters of their common interest.
The Connecticut Bankers Association shall
8 and Resiliency Amid COVID-19
Philipp von Girsewald, CEO US, Deposit Solutions LLC
support and promote legislative and regulatory
actions at the state and federal level that benefit
the general welfare of its member institutions,
the banking industry and the people of
9 Planning for the Future — Is It Laughable?
Ashley Fischer, Esq. Compliance Counsel & Business Strategist, CATIC
10
the state of Connecticut.
The Connecticut Bankers Association shall
Navigating Uncertainty: Creating a Path Forward
encourage and facilitate the interchange of Dr. Sean Payant, Chief Consulting Officer, Haberfield
information and ideas among its members.
The Association shall serve the collective needs
of its members through development
12 Changing Communication in Challenging Times
Tom Larkin, President, Communico, Ltd.
of educational programs and providing
cost-effective services.
14 Learning by Doing
GSB Helps Hundreds of Customers Secure PPP Loans
Abigail Albair, GSB Public Relations
Contact Us
Connecticut Bankers Association
10 Waterside Drive, Suite 300
Farmington, CT 06032-3083
15 Is Your Tank Empty?
What a Pandemic Can Teach Us About How to ‘Re-fuel’, and More
Sara Tarca, Wellbeing Strategy Consultant, OneDigital
Telephone: 860-677-5060 | Fax: 860-677-5066
cba@ctbank.com | www.ctbank.com
CBA Quarterly Editor &
16 Virtual Onboarding Guide
Smith & Wilkinson
Member Services Coordinator
Karen A. Horanzy
18 Collaborating with Bankers to Design the Post-COVID Branch
Mark Charette, CEO, Solidus
CBA Quarterly
Communication Is More Important
is an official publication of the
Connecticut Bankers Association
and is published quarterly by
20 Than Ever During COVID-19 Outbreak
Martin Morgado, President & CEO, Savings Bank of Danbury
22 Looking Past the COVID-19 Economic Crisis
Chris Ball, Ph.D.
4. From the President’s Desk
NFR Communications, Inc. 5. CBA Counsel’s Corner
945 Winnetka Avenue North, Suite 145
Golden Valley, MN 55427
Ph: 952-835-2275 | Fax: 952-835-2295
IN 6. Chair’s Note
nfrcom.com
EVERY 25. CBA Calendar of Events
For advertising information, contact
26. Bankers on the Move
Valerie Fischer, Sales
913-261-7055
ISSUE
Valerie@NFRcom.com 27. Associate Member Notes
28. Community Corner
3
CBA QUARTERLY
2019-2020 CBA Executive Committee:
Chair
Cynthia C. Merkle
President & CEO
Union Savings Bank
First Vice Chair
Michael J. LaBella
Market President, Connecticut,
From the
TD Bank N.A.
Second Vice Chair
Timothy P. Geelan
President's Desk
President & CEO
Guilford Savings Bank
President & CEO
R
Thomas S. Mongellow
esiliency has become something of a business keep the economy going. In the article entitled,
Vice President & General Counsel catchword in recent years, but what does it “Navigating Uncertainty-Creating a Path Forward,”
Arthur T. Corey actually mean? In a recent Forbes magazine David Carlson and Sean Payant of Haberfield
article, Brent Gleeson wrote that businesses “with offer strategies to accelerate customer growth.
AVP, Director of Education a desire to grow, remain competitive, adapt to In “Changing Communication in Challenging
Kimberly M. Tuttle
emerging technologies, and find new ways to Times,” Tom Larkin of Communico provides timely
Legislative Committee Co-chair manage multi-generational workforces, must all information on how banks can utilize technology
Maureen A. Frank discover new ways to build resiliency into the to deliver personalized service to customers. Smith
President & CEO culture.” Among the pillars of resiliency he cites & Wilkinson’s “Virtual Onboarding Guide” will be
New Haven Bank are creating a focused sense of urgency, anticipating useful for HR professionals in addressing situations
change, developing the capacity to tackle challenges where new employees have to work remotely. In
Legislative Committee Co-chair head on and to bounce back from adversity, and “Collaboration Strengthens Banks — and Resiliency
Martin J. Geitz
fostering the ability to operate in a constant state of Amid COVID-19,” Philipp von Grisewald, CEO
Executive Regional Director
Liberty Bank transformation. Based on these pillars, it is clear that of Deposit Solutions, advises banks to consider
our member banks have showcased their resiliency deploying multi-channel banking capabilities to
Past Chair during these trying past several months. meet the rapidly growing demand for online and
Stephen L. Lewis Life has changed for everyone during this mobile banking services.
President & CEO COVID-19 pandemic. Routines that our banks were In the CBA’s effort to thrive in uncertain times,
Thomaston Savings Bank accustomed to, like the simple act of a customer team members continue to operate in a constant state
walking into a branch office or bank staff gathering of transformation. In June, the CBA conducted its
Members:
for a collegial meeting around a conference table first major virtual program, the 2020 Directors &
John E. Janco
President & CEO seemingly vanished overnight. Connecticut banks, Senior Officers Symposium. The event, traditionally
Torrington Savings Bank however, have risen to the occasion with a sense a half-day live event held at the Aquaturf, was
of urgency and discovered new ways to serve their converted to an online morning program with more
Susan L. Shields customers and communities. Banks have contributed than 220 attendees. Additionally, the Connecticut
President & CEO literally hundreds of thousands of dollars to food School of Finance and Management held a virtual
The Milford Bank banks and other charitable causes and continue to Bank Simulation in early September followed by
deliver assistance to customers through programs the CSFM Class of 2020 Graduation. Our thanks
Daniel L. Berta
President
such as the Small Business Administration’s and appreciation go to Kim Tuttle, assistant vice
Fairfield County Bank Paycheck Protection Program and other initiatives. president and director of education, and Kim
The CBA team has been heartened by the Fenton, digital manager, who adeptly managed this
Steven T. Cornell response to this crisis. Connecticut banks have new approach to delivering meetings and events.
President stepped up boldly in the face of adversity to find new On the topic of virtual events, recent COVID-19
National Iron Bank and innovative ways to serve customers, care for data from Florida and consultation with CBA board
the more than 17,000 banking team members that leadership led us to make the difficult decision to
Frank J. Gaudio
comprise our industry, and help our state stabilize its cancel the in-person 121st Annual Meeting, which
President & CEO
First Bank of Greenwich economy. This is true resiliency. had been scheduled for Oct. 22-25, in Ponte Vedra.
We chose “Thriving in Uncertain Times” as the We will instead be scheduling a one-day virtual
Lisa H. Griffin theme of this issue of the CBA Quarterly because From the President, continued on page 17
President & CEO thriving in the midst of a global pandemic requires
Eastern Connecticut Savings Bank a heavy dosage of resiliency. Several articles,
therefore, focus on what banks are doing — or
Kent S. McClun should consider doing — to emerge stronger while
Regional Bank President
continuing to rebuild the economy.
Wells Fargo
Board Chair Cindy Merkle’s inspiring column
Gary J. Roman reminds us of the pride Connecticut bankers Thomas S. Mongellow
President & CEO
President & CEO should feel in representing a profession that has Connecticut Bankers Association
Collinsville Bank risen to the occasion during these difficult times
to help its customers, support the community and
4
THIRD QUARTER 2020
C BA CO U N S E L’S CO R N E R
Federal Regulators Push
Advances in Bank Tech
through Innovation Programs
Art Corey
Vice President & General Counsel
Connecticut Bankers Association
P OCC Innovation Program
rior to the pandemic, the adoption of FDIC Chair Jelena McWilliams is leading
technology by financial institutions and the charge, signaling her keen interest and Resources
their customers proceeded in a cautious in bank tech innovation in an October 4, Among the federal bank regulators, the
and measured way. As we have all experienced, 2019 op-ed in American Banker-Online, OCC may have been the first out of the gates
the pandemic has upended that approach, which you can read at www.fdic.gov/news/ on tech innovation. It opened its Office of
forcing financial institutions to digitize their letters/innovation.html. In that piece she Innovation in January 2017. In that same
operations at a much quicker pace. declares “I am on a mission to change how year it also announced that it would offer an
Steve McLaughlin, founder and CEO of FT the Federal Deposit Insurance Corp., views ongoing series of technology “office hours”
Partners, a leading fintech-focused investment innovation, and I need some help.” On the that would allow banks to have one-on-one
bank, observed in an August video conference FDiTech website, she also states: “It is my conversations with OCC staff on technology
sponsored by his company that “by now goal that the FDIC lay the foundation for matters.
it’s pretty clear the move to digitization in the next chapter of banking by encouraging The OCC’s announcement described the
financial services is faster than it’s ever been innovation that meets consumer demand, office hours as “an opportunity to have a
before. We’ve sort of taken three years and promotes community banking, reduces candid discussion with OCC staff regarding
crammed it into three months.” compliance burdens, and modernizes financial technology, new products or
supervision.”
Regulators Out in Front services, partnering with a bank or fintech,
And when she said, “I need your help,” or any other matter related to financial
While the pandemic left consumers
it appears McWilliams meant it. On June innovation.” It appears the OCC intends to
and banks with no choice but to more
fully embrace technology, the federal 30, the FDIC announced on its FDiTech periodically offer innovation office hours on
banking regulators had already done website “a rapid prototyping competition a regional basis going forward and we will let
just that. The Federal Deposit Insurance to help develop a new and innovative you know the next time they are offered close
Corporation, Federal Reserve Board, Office approach to financial reporting, particularly to Connecticut.
of the Comptroller of the Currency, and the for community banks.” Through the
invitation-only competition the FDIC is Fed Innovation Program
Consumer Financial Protection Bureau all
started technology innovation programs asking 20 technology firms to develop and Resources
in the years prior to the pandemic. These ideas “that will make financial reporting In December of 2019, the Fed launched
programs were designed to encourage banks seamless and less burdensome for banks, a web page that serves as a clearing house
and technology companies to engage in provide more timely and granular data to for technology innovation developments.
“responsible” innovation. the FDIC on industry health, and promote The Fed’s website offers an extensive library
more efficient supervision of individual of articles and other resources on tech
FDIC Innovation Program banks.” innovation.
and Resources Another FDiTech initiative seeks input Like the OCC, the Fed also offers
One could say that the FDIC is perhaps the from banks and other industry stakeholders technology “office hours” at Federal Reserve
most excited about pushing financial services on the potential for developing a voluntary Banks. The most recent were offered in
technology innovation. It recently launched a certification program for new technology Cleveland in early September. No additional
sleek and modern website under its “FDiTech” vendors that would be designed to reduce office hours had been announced as of the
initiative, which you can access at www.fdic. the vendor due diligence efforts a bank must writing of this article, but again, we will alert
gov/fditech. Once the site fully loads, visitors currently expend when vetting a new vendor. you to any that may be offered close by.
are treated to an introductory video with, of You can read about this proposal at the With the Federal Reserve Bank of Boston
all things, a rock guitar soundtrack. A mission FDiTech website address referenced above. leading the charge, the Fed is also pressing
statement, of sorts, on the site declares: “We This is a tantalizing proposal, but it is also on with the development of FedNow,
are on a mission to promote the adoption of fraught with possible downsides, such as which promises to offer a new nationwide
innovative technologies across the financial the potential to make bankers feel pressured infrastructure for instant payments. On
services sector.” Needless to say, this isn’t to only use vendors certified through the August 6 it announced the service’s features
your typical bank regulator website. program. Counsel’s Corner, continued on page 21
5
CBA QUARTERLY
C H A I R ’S N OT E
I’m Proud to Be a
Connecticut Banker
N
“ obody told me there’d be And there are signs that business is getting better.
days like these. Strange As of this writing, low mortgage rates are helping to stimulate
days indeed.” the residential mortgage market in Connecticut. Though inventory
Cynthia (Cindy) Merkle John Lennon’s hit song is sparse, the sales activity appears to be picking up and predictions
Chair, Board of Directors
Connecticut Bankers Association
“Nobody Told Me” could be that I’ve seen are that the second half of the year will see a
President & CEO, Union Savings Bank somewhat of an anthem for these turnaround that could lead to a promising housing market in 2021.
pandemic times. I’m proud to say, Here’s hoping.
however, that we Connecticut bankers haven’t allowed COVID-19 When I wrote my Chair’s Note for the previous edition of CBA
to deter us from what we do best: Serve our customers. Quarterly, I never dreamed that we’d still be dealing with the
This has been evident in the way that our membership acted pandemic on a daily basis. It’s obviously a force to continue to
immediately to offer consumers and businesses safe access to their reckon with; we cannot let our guards down. That said, I remain
money and needed banking services, and have been in lockstep optimistic for a number of reasons:
with the state’s reopening strategy. We’ve demonstrated our • Despite the partisan debates that dominate the news, in
empathy by relaxing loan payment terms and moving expeditiously general, people are working together to remain safe.
to provide access to federal programs. And we’ve donated to • We are seeing additional bank lobbies opening for more in-
those on the front line assisting our neighbors stricken by this person banking, while continuing to follow strict safety measures.
debilitating virus. • As an industry, banks have remained open minded and
If there has been an element of normalcy throughout these past determined, demonstrating a resiliency and common sense that is
months, it has come from the banking industry. Not that we saw this exemplary.
coming, but we were already in a good place due to the investments • And creativity abounds all around us. Whether it’s mobile
that we’ve made with secure, diverse delivery systems that provide graduation ceremonies, curbside pick-ups, or virtual concerts…we
multiple access points for our customers. This same delivery system as a community are finding ways to continue to live.
helped to protect our employees from the virus, albeit with some It’s been quite a year to be your chair…strange days indeed…one
additional, strict safety measures, some of which will serve us well that I’ll never forget. And I’ve never been prouder to call myself a
in post pandemic times. Connecticut banker! e
6
THIRD QUARTER 2020
From Survive to Thrive
By Thomas J. Long, Founder and Principal, The Long Group
A
mazon represents an emblematic image of the new There is a prescriptive path to
economy. The brilliance of the Amazon business model is creating the smart data advantage
that it can be reduced to a simple statement. The genius and closing the knowledge gap.
of which is to improve the customer experience as a gateway Operationalizing the Amazon business Tom
to driving revenue. Similarly, every forward-thinking financial model is a quantitative exercise. The
Long
institution endeavors to do the same. outcome of this analysis is to gain
Recognizing competitive advantage the customer and market intelligence
The source of Amazon’s competitive advantage is actually very required to prospect more skillfully.
simple. The essence of what makes Amazon unique is that the The physical address is the gateway
brand possesses a name and address on every client relationship. to success. It will:
The preponderance of any other retailer’s clients is innocuously • Identify the geography that each
walking in and out of their doors. As a result, while Amazon branch competes within for business.
thrives, its competition is attempting to survive. • Reveal the number of households and businesses available.
In reality, there is only one other business sector that naturally • Define product line demand among consumers and
possesses the source of Amazon’s competitive advantage. Due to businesses.
the fiduciary relationship that each financial institution maintains • Establish penetration benchmarks.
with clients, the financial sector exclusively shares the source • Delineate incremental opportunities.
of Amazon’s strength. Furthermore, every financial institution • Determine product line purchase intent to prospect more
recognizes the benefits of improving the customer experience as intelligently.
a gateway to driving revenue. Executing with clarity, however,
remains a challenge. Plan to thrive
The architecture for success is present at every financial
Creating smart data
The Amazon business model is operationalized with ease. institution. Recognizing data as an asset requires rethinking the
Simply put, Amazon utilizes the physical address provided by business model. Broadening existing customer relationships and
every customer to leverage its understanding of each individual prospecting more intelligently begins with the physical address.
client. Insight is created by appending, mining and analyzing Smart data offers the market and customer insight to build
its client file to enrich the organization’s perception of each competitive advantage. Improving the customer experience is
customer to personalize the purchase experience. the gateway to driving revenue. It is time to get personal. Plan to
In the smart data economy, the financial institution with the thrive.
most actionable, local knowledge claims victory. The competitor
that best knows its markets and its clients is well-positioned The Long Group LLC’s proprietary consumer and business
to adeptly anticipate needs, creating a competitive advantage. database describes financial service demand, journey and
Becoming a more efficient organization requires greater customer purchase intent to define growth strategies within existing
and market intelligence to prospect more effectively. markets. Tom Long is the Founding Manager.
7
CBA QUARTERLY
Collaboration Strengthens Banks —
and Resiliency Amid COVID-19
Philipp von Girsewald, CEO US, Deposit Solutions LLC
A
s the country braces for an imminent recession following As they review the competitive landscape and explore
the coronavirus, banks of all sizes have had to adapt opportunities to invest and innovate, banks should consider
quickly to usher in stability and liquidity to the markets, deploying multichannel banking capabilities – to meet consumer
to communities and for the entire economy. Banks went into demand for online and mobile banking experiences – and seek
crisis management mode, which evolved into business continuity new opportunities to grow deposits. Developing these capabilities
management, to continue to serve their customers. Community in-house may be quite time consuming and potentially prohibitively
banks, in particular, have shown their colors in recent weeks, expensive for some banks. Other banks that have pre-existing
triaging inbound requests, communicating with businesses, and capabilities may not be able to achieve the same efficiencies and
working tirelessly to help companies navigate the Paycheck success as they would by working with service providers that focus
Protection Program and related stimulus packages. on specific competencies. Rather than looking in-house, these banks
Now, banks should transition to adapting their business model to should look to ‘in-source’ to maximize their market opportunities.
the new normal. Firms will continue focusing on protecting their Now more than ever, banks should leverage collaborative fintech
franchise and sustaining their hard-earned market share. Focus partnerships to help bridge gaps between desired and existing
should then move toward operational changes and gaining market capabilities. Through such collaboration, banks can, for example,
share. Even as some states begin to “open” back up, customer use provide access to products with multichannel experiences consumers
of physical branches is expected to remain low. To attract customers crave without themselves having to develop that digital experience
in such an environment, smaller banks especially should review and and market to the customer. One such way that banks can leverage
potentially improve their business models. Resiliency amid COVID-19, continued on page 13
Build Market Share and Earnings.
Drive Revenue. Control Costs.
Improve Performance.
Business intelligence to think strategically and act tactically.
• Strategic Planning
• Branch Rationalization and Expansion
• Staffing Analysis
• Survey and Focus Group Research
• Marketing and Customer Engagement
longgrouponline.com | 603.424.5664 | tomlong@longgrouponline.com
8
THIRD QUARTER 2020
Planning T
here is an old Yiddish proverb technology many of them already had
that translates to, “Man plans, in their pocket — a phone. Under
and God laughs.” This seems RIN, the signer and notary connect
for the
to be the perfect analogy for 2020. via video conference to allow the
We came into this new decade with a notary to observe the signer execute
fresh perspective and goals to bring a paper document. That document
us through the year. However, in is then transferred to the notary for
Future —
March, all of us had to adjust those completion.
plans to accommodate the unforeseen To combat the COVID-19 crisis, all
global interruption — COVID-19. The but two states implemented some form
Is It
real estate industry was certainly not of remote notarization. Use of remote
immune to the effects and uncertainty notarization measures soared with a
of the pandemic. As an industry reported 40 percent increase from April
established on in-person interactions, to May of this year. Though many of
Laughable?
from home showings to the closing these measures are set to expire as
table, real estate professionals were the country returns to “normal,” the
forced to get creative. Deals had to bell has rung for remote notarization
close, and industry professionals and it’s expected that many states will
devised safe and compliant methods to enact permanent solutions.
By Ashley Fischer, Esq. Compliance serve their clients. As we begin to explore what the
Counsel & Business Strategist, CATIC One such method that received the future state of the closing process
most attention was the introduction could look like, it’s important to
of remote notarization processes. keep in mind the demands of all
It was clear that the closing table industry players, from the consumer
"We must aim could exist anywhere, but getting
paperwork properly executed and
to secondary market investors.
A successful process will serve
to create a acknowledged in an era of social
distancing posed a unique problem.
each of these stakeholders without
compromising the integrity of the
As of March 2020, at the outset
process that is of the COVID-19 pandemic, there
transaction. We must aim to create
a process that is secure, trustworthy
were 23 states that had passed and flexible to accommodate various
legislation to permit remote stakeholder requirements.
online notarizations, Earlier this year, Connecticut
or “RON.” RON is a introduced RON legislation, but there
secure, process of notarizing a
document in an online
platform using electronic
was little interest in the concept at
the time. The past few months have
created the ideal environment for RON
documents and signatures to take off here in the Constitution
while the notary and the State. Well-thought-out RON
signer are in different physical legislation would provide the security
Trustworthy
locations. and reliability that industry players
RON seemed like an ideal solution require to fund and insure transactions.
+
to enable the real estate Moreover, the implementation of
industry to continue to
RON would not require closings to
operate. A major problem,
be conducted remotely, but rather it
however, was that
would provide the option should a
RON required the use
flexible
remote closing be desired or required.
of special software,
RON would just be another tool in the
training, and enabling
toolbox, to be used for the appropriate
laws to permit a notary
project.
to conduct a notarization
The pandemic has taught us all how
in this new way. States
to be more comfortable with operating
simply didn’t have the time
remotely, and we’re recognizing the
to accommodate to onboard a RON solution, and
so the concept of remote ink-
value in having flexible processes to
accommodate consumer and industry
signed notarization, or “RIN,”
various stakeholder was conceived. Like RON, RIN
partners’ demands. Though we may
not have planned to implement remote
enables a notary in a separate
requirements." physical location from a signer
notarization processes, it’s time
to embrace the opportunities RON
to take an acknowledgment and
provides and create a closing process
notarize a document. However, RIN
that can weather any storm — global
enables notaries and signers to use
pandemic or otherwise. e
9
CBA QUARTERLY
Navigating Uncertainty:
Creating a Path Forward
By Dr. Sean Payant, Chief Consulting Officer, Haberfield
I Keys to accelerating
n times of uncertainty, organizations While nothing can completely insulate
have a tendency to put the brakes on, your bank from worsening financial customer growth
losing sight of long-term strategic performance during an economic Get the product right: People hate
initiatives and established growth goals. downturn, the data illustrates that having fees. Compressed margins and decreased
However, history has taught us the more customers certainly helps. profitability can lead to the discussion
decisions your bank makes today will
How do customers of increasing monthly service fees or
have lasting implications for tomorrow.
adding minimum balance requirements.
Business as usual will return and our “cushion” profitability?
Non-Interest Income: Banks executing Chart 3 shows recent research on the
strategic initiatives and growth goals will
a growth strategy simply have more criteria consumers use when selecting a
still be there. The key is to stay focused
non-interest income. As the customer- banking provider. Interestingly, comparing
on growing core customers, regardless of
base increases, non-interest income consumers of all ages with consumers
the economic environment. Here’s why.
also increases — not because of regular under 40 years of age produces very little
More customers service charges, but instead through more difference as it relates to what people
cushion profitability customers utilizing income producing desire.
Having more customers is one of the services, such as interchange income Compression in bank earnings will have
best ways to guarantee strong performance (average of $60 p/a/p/y) and valuing little impact on what consumers want
in all economies. Banks executing a overdraft services (average of $90 from their banking partner. Your retail and
growth strategy consistently have up p/a/p/y). business products must be compelling if
to two times the number of customers The accompanying charts illustrate the you want to have the greatest opportunity
per branch when compared to industry impact that focusing on growth and having to grow core customers.
averages. significantly more customers has on non- Invest in training your team: Too often
To get a picture of how customers impact interest income. (See chart 2) our industry treats training as an event
bank performance, we need to turn to data More low-cost funding: 70 percent rather than a way of life. Employees who
compiled during the Great Recession of of the time, the first product purchased do not understand your products and
2008. For context, the average bank has at a bank by a consumer household is a services will never be able to recognize
approximately 1,100 retail and business checking account. It’s 55 percent of the opportunities with customers, let alone
checking customers per branch. Banks time for businesses. Checking deposits speak in terms of benefits. It is crucial
consistently executing a growth strategy are the lowest cost funding available, your institution commit to on-going
have approximately 2,200 retail and with business checking deposits having training initiatives regarding all of your
business checking customers per branch. a cost of funds less than .01 percent; this products and services.
An analysis of the data illustrates the translates into improved NIM.
impact core customers have on return Relational intensity: Checking Marketing to grow: Increase
on assets and return on equity. What we customers buy additional products and spending on strategic marketing
learned from the Great Recession was services. Growing retail and business Proactive: According to Novantas,
banks that stayed focused on growth checking customers affords your bank 65 percent of consumers only consider
remained stronger. While everyone was first right of refusal on other products and two options when they go to move their
challenged, growth-oriented banks fared services 73 percent of the time, averaging checking account, meaning 65 percent
much better. ROA declined less than the 5.64 retail and 5.86 business product and of your current customers already know
industry average (26 percent for growth service relationships. where they would bank if they didn’t
focused vs. 56 percent for the industry), Loans from local markets: Having bank with you. You must be top-of-mind
and ROE followed the same trend. Just more customers also allows your bank to before consumers and businesses know
as important, those banks that stayed the lend more money to more people in your they want to switch. Your marketing must
course through the crisis also came back local communities. These loans tend to create the opportunity for them to pick
stronger on the recovery side. (See chart 1) have less risk. you.
10THIRD QUARTER 2020
1
2
Targeted: You need to use data and
3
analytics to help you understand where to
market before you market. Your marketing
resources must be allocated to target
consumers and businesses who haven’t
chosen your bank yet, but could and should.
ROI Focused: You must define what
and how you will measure success before
you market, not after. Make sure your
marketing investment is working to create
tangible, measurable results.
The past informs the present – banks
that stay focused on growth reap the
greatest rewards. While it may not be
intuitive, now is the perfect time to make
sure you have all of the right strategies
in place to capitalize on the growth
opportunities that present themselves in
any economic environment. e
Dr. Sean Payant serves as the chief
consulting officer at Haberfeld, a data-
driven consulting firm specializing in core
relationships and profitability growth for
community-based financial institutions.
Payant can be reached at 402-323-3614 or
spayant@haberfeld.com.
11CBA QUARTERLY
Changing Communication
in Challenging Times
By Tom Larkin, President, Communico, Ltd.
T
he digitization of our experience as consumers is no longer of COVID-19, superior customer experience means clarity and
“news.” However, the pace at which the COVID-19 crisis transparency, support for digital tools with which many customers
has forced bankers, companies, employees and customers to are still unfamiliar, and new products and services for customers in
adapt is. Many of us, sequestered in our homes are figuring things distress.”
out – everything from how to keep the family at bay while we try to Creating that superior customer experience goes beyond providing
get our work done, to learning how many days in advance we really high-touch, skilled support for using digital tools. Employees will
need to place our grocery order and keep our cupboards stocked. also need to know how to relate with and help a customer who
For those employees still on the face-to-face frontline, the challenge may be asking about something deeply personal, like lowering an
of staying safe, providing great service and responding to changing interest rate, pausing a loan payment, restructuring an existing loan,
needs and demands is incalculable. And, how to create deep or something else related to the most fundamental pursuit of all:
community is a real opportunity in the community banking. Survival. The human piece has never been more important and it is
The good news is that we are adapting because the shift to what your customers will remember about their experience with you.
digital was well under way long before the pandemic. Early In a recent email to its customer base, Prudential broadcasted
adopters embraced the access and the sometime-ease, others that human piece, saying: “…you can continue to count on us for
adapted stoically, and still others did so kicking and screaming. the support and stability you need. We stand strong and remain as
With repeated use, trial and error, going digital got easier for focused as ever on your safety and wellbeing, as well as that of our
most of us. But something else happened at the same time: We financial industry partners, our employees, and the communities
became increasingly aware of what was missing in our one-sided- we serve. We recognize the financial challenges you may be faced
human transactions: the confidence that comes with knowing that with during these uncertain times and have taken specific actions to
“Meredith,” a real person, heard and understood our concerns and help.”
knew how to act on our needs. As much as we want to trust that The email went on to detail those actions, stressing ease of access,
the digitized voice on the other end of the line can do the same, we constancy of connection, and increased commitment to being
remain wary. I suggest the community banker relationship is poised accountable to customers in ways that matter to them. The trust-
for deeper, more loyal relationships. The local community bank is in building was reinforced further: “We're here for you, no matter what.
a position to be a facilitator or real community developer. We have maintained extensive capabilities and have fully mobilized
While social distancing has increased our safety by helping to our workforce, both for the safety of our employees and to ensure
keep the coronavirus at bay, it has also increased our awareness of business continuity. Our employees have the remote support they
our shared humanity. How often do you hear, “We are all in this need to continue to serve your needs.”
together,” or similar statements of heart and determination that McKinsey also points out the importance of the employee
are rooted in our shared, boundaryless experience? In a beautiful experience in determining the customer experience: “Engage with
irony, “united apart” is bringing us closer together as neighbors, radical empathy…provide complete transparency.” Companies that
communities, nations and continents. There is no business as usual embrace this approach to communication amidst the current crisis
any more than there is life as usual. Companies in all industries make a huge deposit in the “trust account” of both employees and
continue to adapt and, as they do so, are increasingly focused on customers. As you consider how to communicate with your teams
how to communicate and engage with their customers to build and and with your customers in the very personal world of banking, keep
sustain their trust. Doing so right now is a non-negotiable and a these key points in mind:
distinct competitive advantage. Consider this excerpt from an April High tech without high touch translates as tone-deaf.
2020 McKinsey article: Employees and customers are not impressed with technology that
“In normal times, customer experience in banking is about bypasses the human touch. Being merely transactional won’t cut
making customers happy—with the result that they are more it, especially now. Yes, we’re happy with our ATM, but that’s not
loyal, use products more, and cost less to serve. In the context differentiating you very much.
12THIRD QUARTER 2020
Personalization is the bridge to trust. You may be in the business demonstrated through words and actions that communicate in
of dollars and cents, but so is every other bank. Engage with your a real way: “Pat, thanks for hanging in there on that long line, I
customer as a person first, and always. Start by committing to using appreciate your patience and I’ll complete these deposits for you
the customer’s name, remembering things about your customer, and quickly.”
demonstrating genuine respect. Accountability translates as security. Be impeccably precise
Empathy is a skill, not a therapy business. Banking is about about what you will do and by when. Don’t leave your customer
relationships – developing, long-term relationships that build wondering or having to ask you what will happen next. The
mutual value. Remember that relationships aren’t self-sustaining. language of accountability creates security. The actions that follow
They require a continuous renewal of understanding that is build trust. e
Resiliency amid COVID-19, continued from page 8
these relationships efficiently is by for their products digitally. It’s a modern and organizations encouraging: the
embracing open architecture technology. approach to deposit gathering: the deposits government and business communities
Popularized in Europe over the past sourced through such platforms require no working together to preserve the country
decade, open architecture technology more effort by a deposit-taking bank than as and the overall economy. Banks, and their
— the use of third-party vendors to in- if they were wholesale brokered deposits, but trade associations, have worked diligently
source products and services — promotes are inherently stickier and more “retail” in to maintain the availability of banking
collaboration within the financial services nature. Such new funding sources mean that services and help guide customers through
community and can help banks adapt banks can focus their efforts on serving their the stimulus application process. Such
quickly and thrive, long-term. It is communities and customers locally. By taking collaboration helps strengthen our resiliency.
perhaps one of the best ways for banks to advantage of open architecture, community Partnering with fintech firms, banks can
position for stability, even growth, in this banks can unlock the additional liquidity they now in-source innovations in customer
unpredictable time. seek, which is especially important in this service, artificial intelligence, payments and
When seeking a provider who offers an challenging business environment. more to better serve their customers. To stay
open-architecture platform specifically for No one knows how long this pandemic competitive in a time of uncertainty, banks
deposit products, it is prudent to look for a — and its economic aftershock — should look to collaborate and in-source
company that can benefit a bank by getting will last. However, I find the evident similar innovations whenever possible and
access to a national audience of depositors collaboration among tangential industries relevant. e
•
•
•
•
13CBA QUARTERLY
Learning By Doing
GSB helps hundreds of customers secure PPP loans
By Abigail Albair, GSB Community Relations
V
ictoria Magin, facilities and vendor our community were in need,” she said. “I Through many late nights and round the
manager at Guilford Savings Bank, had no problem working 16 hours a day and clock weekend work, the lending team was
had just returned from vacation emailing customers endlessly back and forth able to process 160 loans totaling almost
at the start of the state shutdown resulting gathering information because, at the end of $30 million before the funding ran out.
from COVID-19. She spent two weeks the day, these small business owners were, Reverse Mortgage Specialist Kathy
quarantined and working on her laptop before and are, struggling and we are able to help.” Duncan served as Magin’s counterpart as
she was cleared to return to her branch of the Magin’s usual role in facilities became a second team leader on the project. She
145-year-old bank headquartered in Guilford, limited as a result of COVID-19, although was working from her house with two of
Conn. She gathered her desktop computer she was tasked with helping to make her three children – both college students –
and returned home. changes within the branches to maximize wrapping up their semesters at home.
Shortly after, funds were released under safety, much of her other responsibilities She worked long hours – eventually
the $349 billion Paycheck Protection could not be carried out. relocating to her usual branch that was,
Program to benefit small businesses hit hard She offered her time to help in other areas at the time, closed to lobby traffic, so she
by the virus, and that meant long days for and became a team leader on the PPP project. would have a quieter work environment – to
Magin in an area where she typically does Chief Lending Officer Lyle Fulton was in help push loans through. She would leave
not focus. charge of the entire process. the office some evenings as late as 9 p.m.
“There were a lot of late nights, but it “It was a chaotic roll out for round one,” and continue working until after midnight
was worth it because I know these people in Fulton said. “It was learning by doing.” Learning by doing, continued on page 24
Difficult conversations are the
most important conversations.
Whether your organization is taking the first step or the hundredth
step to address racial inequities in the workplace, it’s a step in
the right direction.
We know that it feels like an impossibly challenging time. As you
need it, OneDigital’s strategic consultants are here with advice
and support to help you navigate through these conversations,
discussions and next steps as you look toward making change for
the better.
Visit our Racial Equity Hub for additional resources to support
your organization’s journey to a more inclusive workplace.
onedigital.com/racial-equity
Connect with Tina Sparrow to learn how we partner with organizations like you to power their
employees with exceptional benefits, HR and technology.
860.470.0339 | tsparrow@onedigital.com | onedigital.com
14THIRD QUARTER 2020
Is Your Tank Empty?
What a pandemic can teach us about how to ‘re-fuel,’ build resilience
and stay positive.
By Sara Tarca, Wellbeing Strategy Consultant, OneDigital
W Steps to support employees
e’ve all heard, “Where do you see yourself in five
years?” It’s fair to say that in 2015, none of us would and the organization
have been correct in our future vision. The overnight
Provide Resiliency Tools. Skills that promote resiliency
course correction due to the global pandemic has triggered an
can help employees to thrive in this environment, which will
unprecedented tidal wave of personal and professional stress. One
improve morale, promote cultural positivity, and organizational
positive aspect? This is a collective experience, which allows us
empowerment.
to learn from the crisis. This crisis has forced companies of all
Provide managers and employees alike with opportunities to build
sizes and industries to adopt new practices, pivot from traditional
skills, understand and identify support systems, re-introduce and
methods, and even produce entire new product lines. The banking
communicate EAP benefits (still a highly underutilized resource,
industry has not been immune, but what does all this mean for
often showing less than 10 percent engagement), and introduce
“
banking employees and management?
virtual tools.
The pandemic-era challenge for banks is a balancing
Offer manager training to recognize behaviors
act between employee needs and business
that display signs of trouble. With remote
obligations, and it is one that will require
enduring commitment by the board, workers out of sight, many managers
executive team and HR. At its most basic
With more than struggle with how to gauge employee
level, the challenge is to provide great six million Americans mental health or other concerns.
service to anxious customers while Changes in performance, verbal cues
balancing psychological well-being
employed in the finance and reduced offers to take on tasks
of both remote and contact-center and insurance industries, or projects are a few examples that
employees. an employee may be struggling.
As financial leaders deploy
banking leaders now Provide simple awareness
new business methodologies and face organizational building opportunities via online
tactics to keep the doors open quizzes or departmental challenges.
and the lights on, developing a
opportunities to provide Try a short Resiliency Quiz;
long-term strategy to promote resources to empower their employees can learn how to use
employee well-being (and the ripple resiliency as a solution and feel in
effect on culture, performance and
employees to perform at control.
productivity) is equally important. their best, in fresh and
“ Communicate Shared Leadership
Recognize that employees are tired, plain Vision. In this changed working
and simple. Their tanks are empty after
innovative ways. environment, financial leaders must
months of COVID living. The undercurrent of communicate their vision with empathy,
anxiety, coupled with uncertainty about the future, compassion and transparency. What might this look
has depleted individual energy reserves and will impact the like at your bank?
banking culture if not addressed. Leadership teams can create a rotation for conducting quick
Already a growing concern before the pandemic, employee check-ins via phone or web, demonstrating care and support, while
mental health and impact to the workforce now has additional not burning out any one team member. Sharing a personal story
stressors: shows that everyone is dealing with stresses of the pandemic.
• Balancing work/family life Create a leadership video check-in, a tool that can be
• Job stability/financial stress implemented for the long-term. Employees feel culturally
• Juggling child care/elder care connected, reinforcing that physical distancing doesn’t have to
• Remote technology mean social distancing (cue the Zoom trivia contests and happy
• Returning to work/safety concerns hours).
This is truly a “glass half full or empty” situation. With more Communicate with authenticity and transparency. Leaders can
than six million Americans employed in the finance and insurance reduce employee stress and anxiety by using simple, honest and
industries, banking leaders now face organizational opportunities to frequent communications. Studies show that employees would like
provide resources to empower their employees to perform at their more feedback and “straight talk,” helping to reduce stress. e
best, in fresh and innovative ways. With an unknown end date to the
pandemic, forward thinking leadership teams must learn from this For more resources on supporting your employee's wellbeing,
challenge, offer resources and a plan to develop resiliency skills, and please reach out to Sara Tarca at starca@onedigital.com or visit
stabilize their culture, while promoting positivity and growth amidst www.onedigital.com to view a suite of on-demand advisory sessions
the uncertainty. and articles related to this topic.
15CBA QUARTERLY
Virtual Onboarding Guide
Submitted by Smith & Wilkinson
S
ocial distancing and remote working arrangements are hires the comfort of clear expectations absent normal social and
the new normal and companies across the country are visual clues.
faced with the prospect of onboarding new employees
virtually. Successful virtual onboarding is dependent on both Sample weekly candidate activities
more planning and more structure than usual, to make up for the • Two video conferences with supervisor — the first call focused
absence of situational or on-the-job learning opportunities. With on agenda for the week and the second call focused on feedback and
forethought and intentionality, companies can ensure a smooth learning opportunities;
and efficient onboarding process that minimizes anxiety and • Video conference coffee with mentor: talk, vent, ask questions, etc.;
maximizes social connectivity and business productivity in a • Video conference with human resources: Continue to instill
virtual environment. the culture and be able to offer assistance;
• Video conference with IT (as needed following first few
Pre-hire checklist weeks) to troubleshoot issues;
• 30-day action plan and weekly schedule; • Video conference coffee with colleagues in adjacent
• Hardware and software; departments, and
• Mentor assignment; • Weekly wrap up video conference coffee manager and team.
• Org chart with contact information;
• HR welcome and paperwork, and Hardware and software
• Up to date employee manual (edited with remote instructions). • Ship laptop, phone, parking pass, key fob, etc., to arrive at
least two days before start date.
30-day action plan • Make sure all programs are pre-loaded and functional.
Assume the first 30 days will be completely remote, then reassess • Include a cheat sheet for usernames and passwords.
each week. Estimate that new hires will operate at 60-80 percent • Extra points for a handwritten note or piece of company swag!
normal level of productivity.
Mentor assignment
Establish written 30-day goals: Mentors provide insight and guidance into the culture, norms and
• Job-specific goals; politics of an organization. While normally this type of relationship
• Operational onboarding and systems familiarity goals, and forms organically over time, virtual onboarding calls for a mentor to
• Social goals for internal relationship building. be nominated.
The weekly schedule should include time-blocks and scheduled • Mentors should not be a supervisor or direct report. Ideally
video conferences with the manager, a mentor, peers, direct reports, they would be an experienced peer level colleague with institutional
and other important contacts within the organization. This level of knowledge and relationships. Mentors must keep contents of
scheduling will feel like micromanagement, but will provide new discussion confidential.
16THIRD QUARTER 2020
• No goals, no agenda. Mentors are simply a friendly resource. • Follow up video conferences scheduled for second, third and
• Mentors should reach out on the new candidate’s first day. fourth weeks as well — this can be kept brief.
Organizational chart with contact information Employee manual with remote instructions
An organizational chart helps new employees visualize the • Standard employee manuals should be carefully reviewed
organizational structure. in light of virtual onboarding and remote work. Some policies and
Organizational chart should be updated to include contact procedures may have to be tweaked.
information for all relevant company executives, peers and direct • Special attention should be paid to providing detailed
reports. instructions and guidance on all company systems that the new hire
Organizational chart should align with monthly videoconferencing will need to utilize.
schedule. • Easy access to relevant files, policies and procedures, payroll
and benefits information, etc., can make the difference between a
HR welcome and paperwork productive and frustrating day.
• Just like a normal HR intake, except delivered via video. Virtual onboarding may be unfamiliar, but necessity is the mother
• Video conference with HR representative for welcome and of invention. With careful planning and an emphasis on frequent,
onboarding review. scheduled video conferences and phone calls, new hires can build
• Paperwork presented and completed digitally or mailed as meaningful relationships, become indoctrinated into company norms
necessary. and culture, and achieve strong productivity from the comfort of
• I-9 requirements adjusted for social distance. their own home. e
From the President, continued from page 4 and are confident that we reached the best It is comforting, however, to know that
Annual Meeting in early November and plan decision to protect the health and safety of our members, associate members and
members, associate members and guests. other stakeholders are jointly focused —
to present key educational and informational
As we head into the fall, we will continue to and making headway — on moving our
sessions along with holding the Annual deliver high quality virtual program offerings state toward a better future. This sense of
Meeting in compliance with CBA bylaws. as the health and safety of our members collaboration and resolve can certainly help
We thank our members and sponsors for remains paramount. each of us feel a little more comfortable
their patience as we navigated the issues In challenging times such as these, it is with being uncomfortable. That, to me, is
surrounding the 2020 Annual Meeting natural for us to feel a little uncomfortable. resiliency in a nutshell. e
Ion Bank in Meriden, CT
17CBA QUARTERLY
Collaborating with Bankers to
Design the Post-COVID Branch
By Mark Charette, CEO, Solidus
T
here is no question that we are entering a new and relatively mandated employee safety and security measures specifically
unknown era in branch banking. The coronavirus pandemic for COVID-19. Social distancing protocols are being drilled
has possibly disrupted the past decade’s trends in branch into bankers’ minds lest they grow complacent around in-branch
design, and right now the future is uncertain to say the least. We activities. Financial institutions have been ordered to keep records
have seen some bold predictions about the subject via blog posts, for each employee trained in this regard. Banks and credit unions
social media and webinars, but whether these viewpoints are are obliged to produce separate employee and customer security and
objective or just wishful thinking is difficult to say. We at Solidus safety procedures. Employees are required to know what is expected
believe the best way to anticipate and deliver on future branch trends of them, what the policy and procedure is, and how to enforce it in
is by the banks themselves collaborating with us to develop custom, branches. Customers will require some training on novel in-branch
workable solutions on a branch-by-branch basis. conventions which will further tap into resources and distract from
ongoing projects in transformed branches on how to use video teller
The post-COVID branch poses questions for machines and other new technology.
designers, but common-sense should prevail
For the past three months, banking executives have been Will new branch modifications
inundated with issues ranging from new security policies and affect sociability and interaction?
procedures, to individual branch strategies and marketing, as they Branch modifications to prevent the spread of COVID-19 are
strive to best deal with unprecedented circumstances. OSHA has already being universally applied across the industry to protect
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