Behind the Vault

What happens when a century-old community bank embraces fintech innovation? In this episode of Behind the Vault, Peter Stenehjem fourth-generation CEO of First International Bank & Trust, shares their journey of growth and transformation.Key topics from our conversation:Leading a 115-year-old family-owned bankBalancing tradition with innovationStrategic expansion through acquisitionsMoving into payment fintech offeringsDeveloping Banking-as-a-ServiceManaging risk in real-time paymentsThe episode provides essential insights for:Community bank leadersFamily-owned business executivesFintech innovatorsBanking transformation leadersRisk management professionalsFor more info:First International Bank and TrustKotapayPeter's LinkedIn profile

When Seattle Bank couldn't find the right solution for asset growth, they built one themselves. In this episode of Behind the Vault, CEO John Blizzard shares how they created CD Valet, a marketplace helping community banks compete for deposits nationwide.Key topics from our conversation:How Seattle Bank identified the CD marketplace gapBuilding and scaling a fintech solution as a community bankRaising $150 million in deposits in 10 weeksTechnology and team requirements for nationwide reachTaking CD Valet from an internal solution to a standalone businessThe episode provides essential insights for:Bank executives seeking deposit growth strategiesCommunity banks exploring fintech opportunitiesFinancial institutions evaluating CD strategiesBanking innovators and product developersFor more info:Seattle BankCD ValetJohn's LinkedIn Profile

When called upon to transform an organization, it's often a delicate and ever-changing balancing act. This requires delivering outcomes that not just meet expectations but will win in the market and operate within the realities of the institution's resources and capabilities. In this episode, we sit down with Kevin Miller, CEO of Travis Credit Union, to discuss their journey of such an effort. Kevin walks through the ambitious goals for the CU and its approach to people, processes, and technology. He shares insights and lessons learned almost 3 years into the process. Key topics from our conversation:Building and maintaining transformation momentumManaging board relationships during major changeBalancing growth ambitions with operational realitiesPractical approaches to digital transformationCreating sustainable organizational changeFor more info:Travis Credit UnionKevin's LinkedIn Profile

Being led by the needs of your customers and members is a given. Being confident of what those needs are is another matter. And making big bets on things like your digital experience is increasingly becoming make or break for an institution's relevance. Addition Financial's COO Kevin Dougherty shares how their team turned member insights into actionable requirements, avoiding costly missteps and building features their members truly needed. Kevin shares their member-first approach to digital transformation, where extensive surveys and feedback loops created the roadmap for their success.Key topics from our conversation:Turning survey data into actionable requirementsAvoiding costly technology misstepsMeasuring success through member responseBuilding features members actually useWhether planning a digital transformation, evaluating new technology, or looking to understand your members'/customers' needs better, this episode offers practical insights on making smarter technology decisions.For more info:Addition FinancialKevin's LinkedIn Profile

How is fintech changing financial regulation, and what does it mean for your institution? In this episode of Behind the Vault, Jim McCarthy draws on his unique experience as a founding CFPB member and former FDIC regulator to help us understand where consumer financial regulation is headed.Key topics from our conversation:Evolution of consumer financial regulationUsing sentiment data to predict compliance risksImpact of fintech on regulatory expectationsOpen banking and Rule 1033 implicationsStrategies for staying ahead of regulatory changesJim's perspective and advice can be invaluable to:Bank and credit union executivesCompliance officersRisk management professionalsFintech leadersBanking strategistsFor more info:Jim's firm, McCarthy HatchJim's LinkedIn ProfileFinancial Forward Podcast

In this episode, we dive deep with Sandy Spring Bank's Chief Digital Officer Chris Orr and Director of Omni-Channel Strategy Jeff Weidley as they share their journey of leading digital transformation at a $14B institution. Through their unique paired leadership approach, Chris and Jeff reveal how they've orchestrated comprehensive changes in digital banking capabilities while maintaining focus on customer experience. They discuss the evolution of their technology stack, the challenges of post-pandemic modernization, and their innovative approach to in-house software development. The conversation illuminates how executive leadership, organizational alignment, and continuous customer feedback create the foundation for successful digital transformation.Key topics from our conversation:Integration and platform orchestration for enhanced customer experienceBuilding and scaling in-house software development capabilitiesManaging organizational change across departments and reporting structuresLeveraging monthly releases for continuous improvementBalancing legacy stability with digital innovationWhether you're a banking executive, IT strategist, or financial services professional, this episode offers valuable insights into how a 150-year-old institution successfully navigates the challenges of digital transformation while maintaining its commitment to customer service excellence.For more info:Sandy Spring BankChris Orr's LinkedIn ProfileJeff Weidley's LinkedIn Profile

Financial institutions worldwide will spend over $9 billion on digital banking solutions this year, yet more than half of these initiatives fail to meet expectations. In this episode of Behind the Vault, we explore why this happens and how community banks and credit unions can build better digital experiences through design thinking.Key topics from our conversation:Why digital transformation often falls shortHow design thinking applies to bankingCreating low-fidelity prototypes to test ideasBalancing customer needs with regulatory requirementsBuilding differentiated value in digital experiencesActionable takeaways from this episode:Building systematic customer observation practicesCreating frameworks for capturing insightsEvaluating digital initiatives against strategic differentiationPractical steps to start implementing todayWhether you're a banking executive, digital transformation leader, or technology decision-maker, this episode provides practical frameworks for making smarter technology investments that truly serve your community.For more info:Design thinking overview: Standford d.School toolkitDesign of Everyday Things: Beyond GoodIDEO Finance Services case studiesGartner survey of digital transformation

In this episode, we hear from Jody Guetter, Chief Marketing Officer at Nymbus, about the lessons learned in consumer engagement from a career in consumer brand marketing, community banking, and fintech. Jody shares insights on the evolution of marketing roles in community banking, the importance of data-driven strategies for growth, and the often missed uses of technology in marketing. She delves into the verticalization strategy, illustrating how narrowing focus can expand market reach and improve service offerings. This episode offers valuable lessons on balancing risk, optimizing growth strategies, and leveraging data and technology for financial institutions.Key topics from our conversation:Transforming marketing from cost center to growth driverUsing data to understand and reach specific market segmentsHow vertical strategies can expand rather than limit growthBuilding effective marketing technology stacksMeasuring marketing ROI in financial servicesWhether you're a bank executive, credit union leader, or marketing professional, this episode offers valuable insights on creating focused growth strategies that deliver results.For more info:Nymbus LabsJody's LinkedIn Profile

In this episode of Behind the Vault, we hear from Randell Leach, CEO of Beneficial State Bank. Beneficial State Bank is proving that banks can be profitable and purposeful. It has grown into a $1.5 billion CDFI while staying disciplined in the business it pursues and avoids and focused on accessibility to underserved communities in the US Northwest.Key highlights from our conversation:How Beneficial State Bank measures success through a triple-bottom-line approachThe unique challenges and opportunities of operating a mission-driven bankTheir approach to unionization effortsCreating profitable growth while prioritizing community impactThis episode challenges conventional wisdom about banking and provides a blueprint for how financial institutions can drive positive change while maintaining strong financial performance.Tune in to learn about:Why they are structured as a for-profit bank owned by a nonprofit foundationBalancing profitability with community development goalsHow technology investments support both efficiency and accessibilityMeasuring success beyond traditional banking metricsLinks:Beneficial State BankBeneficial State FoundationRandell's LinkedIn Profile

In this episode, Mike Daum, Chief Marketing Officer of Golden 1 Credit Union, shares his fresh perspective on driving change at one of America's largest credit unions. As a recent addition to the $20B+ institution, Mike offers unique insights on modernizing a 91-year-old organization while preserving its core values.Key topics from our conversation:Transitioning from traditional banks to the credit union marketThe shared vision and mission of serving the community and meeting financial needsModernizing marketing functions and the martech stackBalancing change and modernization with the Golden 1's legacyThe critical role of data strategy and personalizationListen in to learn:Navigating alignment and the interconnected roles within larger organizationsThe strategic effort to evolve marketing technology with a focus on speed, efficiency, and impactful data insightsStrategic approach to physical branch expansion in a digital ageWhether you're in financial services or interested in modern marketing strategies, this episode provides valuable perspectives on managing change in today's market.For more info:Golden 1 CUMike's LinkedIn Profile

In this episode of Behind the Vault, Phil Suckow, VP of Innovation at IncredibleBank, challenges that assumption by sharing how a 60-year-old Wisconsin community bank transformed itself into a digital banking pioneer.Key highlights from our conversation:IncredibleBank's journey from traditional community bank to digital innovatorBuilding and launching digital brands without massive development teamsDeveloping a framework for innovationStrategic partnerships with fintechs and core providersPractical approaches to innovation with limited resourcesThis episode demonstrates how community banks can compete and win in today's digital landscape through strategic focus and deliberate execution.Listen in to learn:How to drive digital transformation in a community bank settingStrategies for successful fintech partnerships and vendor relationshipsWays to deliver exceptional digital experiences without huge budgetsThe areas ripe for innovation in banking todayWhether you're a community bank leader looking to innovate, a fintech professional seeking partnership insights, or simply interested in the future of community banking, this episode offers valuable perspectives on bringing big ideas to life in smaller institutions.Links:IncredibleBankBankTech VenturesPhil's LinkedIn profile

In this episode of Behind the Vault, we hear from Ben Maxim, the Chief Innovation Officer of Michigan State University Federal Credit Union. While every innovation discussion inevitably touches AI, we hear Ben's perspective on the misses and hits the CU, and its wholly owned CUSO, The Reseda Group, has had to get real returns from AI in its operations.Key highlights from our conversation:The real-world applications that have and haven't made an impactThe role partnerships play in composing successful solutionsWhere Ben sees BaaS and embedded payments headed in the futureHow credit unions can balance innovation with traditional service valuesThis episode provides a practical roadmap for financial institutions leveraging AI and fintech partnerships to enhance member experiences.Listen in to learn:Embracing innovation in a traditional member experience first culturePractical applications of AI for personalized member experiencesStrategic approaches to fintech partnerships and experimental projectsMeasuring ROI on technology investments in fintechLinks:* Our previous episode with MSUFCU CEO April Clobes* the lab at MSUFCU* The Reseda Group* Ben's LinkedIn Profile

In this episode of Behind the Vault, we look at the inside vs. outside innovation options with Ted Coy, founder of Valiify, a CUSO dedicated to serving smaller banks and credit unions. Ted's journey from Alabama Credit Union to entrepreneurship offers a unique perspective on the challenges and opportunities in this often overlooked sector.Major points from the episode:Ted's career path and the experiences that led to founding ValiifyThe unique needs of small financial institutions and why they're underservedTackling digital account opening for community banks and credit unionsOvercoming the technology adoption bottleneck in smaller institutionsThe build vs. buy dilemma and how it can spark innovationThis episode provides invaluable insights for anyone interested in fintech, credit unions, and the digital transformation of community financial services.Listen in to learn:Barriers to innovation for smaller financial institutionsApproaches the "build vs. buy" dilemma for community FIsStrategies for competing with neobanks and fintechs on a limited budgetThe importance of a consultative approach in serving both small and large institutionsLinks discussed:ValiifyTed's LinkedIn Profile

In this episode of Behind the Vault, we explore the complex world of open banking with Lisa Arthur, US Director and Global Chief Marketing Officer for Sensedia. As regulatory pressures mount and consumer expectations evolve, understanding the impacts of open banking is crucial for community financial institutions.Key highlights from our conversation:Decoding open banking and its impact on community financial institutionsNavigating the challenges and opportunities presented by CFPB's Rule 1033Strategies for leveraging open banking to enhance customer experience and drive growthGlobal perspectives and case studies on successful open banking implementationsThe future of open banking and its potential to reshape financial servicesLisa brings her extensive background in developing solutions for banks and credit unions to provide practical insights for community banks and credit unions facing this new frontier.Listen in to gain:A clear understanding of open banking and its implications for your institutionStrategies to turn regulatory pressures into competitive advantagesInsights on balancing data portability with security and customer trustPractical approaches to implementing open banking initiatives, regardless of your institution's sizeLinks discussed:Sensedia's Guide to Open BankingLisa's LinkedIn Profile

In this episode of Behind the Vault, we sit down with Kevin Brauer, CEO of Affinity Federal Credit Union, to explore innovative strategies for deepening member relationships and community engagement in the financial sector.Key highlights from our conversation:Kevin's journey to becoming CEO and taking over when his predecessor was in the role for 27 years The credit union's wellbeing program and its holistic approach to member supportStrategies for engaging younger demographics through targeted financial education initiativesHow surveys play a critical role in Affinity's ability to tailor services and address critical community needsAffinity's 90-year evolution and its renewed focus on local community impactThis discussion offers valuable insights for credit union leaders, community banking professionals, and anyone interested in the future of member-centric financial services.Listen in to learn:Implementing cultural shifts to foster deeper member relationshipsHow partnerships can unlock insights and drive more relevant and impactful offeringsStrategies for staying relevant in a changing financial landscapeBalancing technological advancements with personalized member careWhether you're a credit union executive, a community banking professional, or simply interested in how financial institutions can make a meaningful impact in their communities, this episode provides thought-provoking perspectives on member-focused growth and community engagement.Links discussed:Affinity Federal Credit UnionAffinity's Wellbeing programKevin's LinkedIn profile

In this episode of Behind the Vault, we explore the world of credit union and bank mergers with industry expert Michael Bell of law firm Honigman. M&A remains high on the list of growth (and exit) strategies for both banks and credit unions, and Michael shares his perspective and experience on what good deals look like and what a successful buyer and seller.Key topics covered in our discussion:* The origins and evolution of credit unions acquiring banks* Navigating the complex regulatory landscape of cross-type financial institution M&A* Trends driving record growth in the number and size of transactions* Strategic benefits and challenges of these unique acquisitions* Impact on small community institutions and the broader financial ecosystemMichael provides a comprehensive overview of this niche yet increasingly important area of financial strategy, offering insights valuable to professionals across the banking and credit union sectors.Listen in to gain:* A perspective on how these mergers became possible* The regulatory hurdles and market dynamics at play* Insights into valuation processes and factors contributing to deal success* A look at the type and stage of both Credit Unions and Community Banks that makes sense for these dealsLinks discussed:* Honigman's Financial Institution practice* Michael's LinkedIn profile

In this episode of Behind the Vault, we explore the crucial intersection of architectural design and customer experience in community banking. Our guest, Diana Melichar, owner and principal of Melichar Architects, shares her expertise creating spaces that build trust and enhance customer relationships.Key topics covered in this 25-minute conversation:-How thoughtful design influences customer trust and experience-Balancing modern banking needs with historic aesthetics-Integrating local culture and hospitality elements into bank designs-Best practices for selecting an architect for your institutionDiana offers insights from real-world case studies, including projects with WinTrust and McHenry Bank, demonstrating how design principles translate into successful banking spaces.Whether you're planning a branch expansion, considering a renovation, or simply interested in the impact of physical spaces on banking relationships, this episode provides valuable perspectives on creating welcoming and secure environments that resonate with your community.For more information and insights:-Melichar Architects-Diana's article for the ABA on design principles

In this episode of the Behind the Vault podcast, we explore the intersection of creativity and finance with Jonathan Taylor, MBA, CEO of CU Sol, a Credit Union Service Organization (CUSO). JT shares his journey from the world of media, music, and arts, the impact on credit union innovation, and the unlikely partnership that led to CU Sol's creation.Key highlights from our discussion:JT's unique background and transition into the credit union movementThe role and impact of CUSOs in modernizing financial servicesCU Sol's innovative approach to serving credit unions and their membersThe CU SAFE initiative: A groundbreaking program supporting domestic violence survivorsListen to the full episode to gain insights into:Creative strategies for credit union growth and member engagementHow mission-driven initiatives can create lasting impact and member loyaltyHow the evolving business model of CUSOs points to untapped areas for innovation and growth in community FIs.For more on JT, CU Soul, and their CU SAFE offering:CU SolCU SAFEJT's LinkedIn profile

In an era where fintech startups often dominate headlines, Vantage West Credit Union proves that established financial institutions can innovate too. Their new digital brand, HUSTL, is reimagining financial services for freelancers and gig workers.In this episode of Behind the Vault, we speak with Rob Hoyle, CIO of Vantage West Credit Union, about the journey of creating HUSTL. This conversation offers valuable insights for financial leaders considering new ways to serve niche markets.Key points from our discussion with Rob:* The rationale behind creating a separate brand for freelancers* Challenges faced in launching a digital brand within a traditional credit union* Strategies for measuring success in a new market segment* How HUSTL's development is informing future innovation at Vantage WestThis 30-minute episode provides a candid look at how a $3B credit union approached innovation, offering lessons applicable to financial institutions of all sizes.For more on Rob, HUSTL, and Vantage West CU:* HUSTL Financial * Vantage West Credit Union* Rob's LinkedIn

In this episode, we hear the story of the turnaround of a 100+ year-old institution with Dave Lamb, Chairman, President, and CEO of Michigan's Oxford Bank. Dave shares his background and how it prepared him for his role in leading a struggling community bank, operating under a consent decree, into a growing and thriving institution. The Oxford Bank story demonstrates the overwhelming importance of culture, especially when faced with an existential threat. Dave shares his experience of coming in as an outsider in the middle of a crisis and the path Oxford took through a turnaround and into growth, including the process of discovering the right products and services needed by their customers. Oxford Bank provides a valuable case study for what's required to change the trajectory of a faltering organization.Highlights:00:00 Dave's journey to Oxford04:00 Executing a turnaround at a community banks14:22 Managing culture during new technology adoption22:09 Expanding into commercial finance30:41 Future options in non-traditional servicesFor more on Dave and Oxford Bank:* Oxfordbank.com* Dave's LinkedIn

Join us for a special conversation with James Robert Lay, founder and CEO of the Digital Growth Institute and author of Banking on Digital Growth and Banking on Change. In this episode, James Robert shares:* Why consumer behavior is driving financial services transformation* The importance of continuous reinvention in the face of exponential change* How to overcome resistance to change within your organization* The power of shorter time periods for driving progressWhether you're a community bank, credit union, or fintech leader, this episode offers invaluable insights on positioning your organization for success in a rapidly evolving landscape. Listen to learn how to cultivate a culture of continuous improvement and innovation that will keep your institution relevant in the years to come.01:27 James Robert's Journey into Financial Services 03:43 The Evolution of Consumer Behavior in Financial Services 12:30 Opportunities and Examples of Industry Transformation 26:13 The 90-Day Growth Method 32:13 Advice for the Frustrated 36:29 Resources For more information, and for James Roberts' books:https://www.jamesrobertlay.com https://www.bankingonchange.com

In this episode, Andrew Sagliocca, CEO of Esquire Bank, shares the unique journey of building a specialized bank focused on serving a narrowly defined customer. Andrew shares the challenges and strategies involved in differentiating their unique offerings and go-to-market strategy, including overcoming regulatory hurdles to develop tailored technology solutions. He provides insights into the bank's approach to understanding its target market, building trust with clients, and leveraging fintech partnerships to enhance its services.Highlights/Topics:Esquire Bank's origin and focus on the litigation verticalChallenges in valuing and lending against contingent legal assetsThe importance of understanding the legal industry's specific needsThe non-obvious expansion into merchant services and why it made perfect senseThe role of technology and customization in serving niche marketsApproach to fintech partnerships and cooperation vs. competitionStrategies for building trust and providing value beyond traditional banking servicesLinks discussed:* Esquire Bank* The group's investor relations and reports* Andrew Sagliocca's LinkedIn profile* Eric Bader's LinkedIn profile

Orange County's Credit Union is much more than the municipality of its namesake. In the past five years, the Credit Union has undertaken a growth strategy, vastly expanding its Southern California presence and adopting a nationwide membership field for its digital banking channels. Kathy Jumper, President and CEO, shares with us the approach they are taking and how her wide and varied background in banking and credit unions informs their execution.This episode is for anyone looking to understand the strategies driving growth in modern community financial institutions.Highlights from our discussion:* From municipal employee credit union to a nationwide field of membership* Commercial real estate and business lending as a differentiator* The relative role digital plays in growth plans* The linchpin of digital account opening and self-service* A unique career spanning community and large banks and credit unions* The questions that will impact future successFor more info: -Orange County's Credit Union-Kathy's LinkedIn

Join us for a masterclass in innovation with April Clobes, CEO of Michigan State University Federal Credit Union (MSUFCU). In this episode, April reveals:* MSUFCU's journey from buying fintech solutions to creating their own* The secret sauce behind their successful fintech acquisitions* How they formed Reseda Group, a credit union service organization (CUSO), to sell solutions to other institutions* Their venture into investing in fintech startupsKey takeaways:* The critical importance of board alignment in driving innovation* How MSUFCU leverages its "Labs" sub-brand for pilot testing* Strategies for measuring success across diverse initiatives* The untapped potential of collaboration in the credit union industryWhether you're in fintech, banking, or any industry facing digital transformation, this episode offers invaluable insights on reinventing business models and managing innovation.Listen to learn how even a staid institution like a university credit union can reshape the future of finance.For more info: -https://www.msufcu.org -https://www.resedagroup.com -https://resedasummit.com

When big regional banks stumbled last year, many customers were left out in the cold. In this episode, we talk with DJ Kurtze, SVP and San Francisco Bay Area Regional President for Five Star Bank, about how Five Star is stepping in to fill that gap. DJ shares his firsthand experience of customer dissatisfaction and the Sacramento bank's strategic move into the Bay Area. Discover how their relationship-driven approach is winning customers in a unique competitive landscape. This episode is a must-listen for anyone interested in the dynamics of regional banking, especially in a post-crisis environment. DJ provides valuable insights into strategic growth, customer acquisition, and expanding into markets, even if it's just down the road.Topics we cover:* DJ's extensive background at Wells Fargo and Signature Bank* Five Star Bank's history and the signals that prompted their expansion into the Bay Area* The new competitive landscape post-SVB collapse and JPMC's acquisition of First Republic* Tactics behind Five Star's successful personal approach to banking* The critical role of recruiting in their strategy* Future outlook for the Bay Area and potential impacts of the CRE marketFor more info: DJ's LinkedIn profile Five Star Bank's website

Rationalizing effort and investment in how and where you serve clients is difficult to get right. It is trickier still to do so with the resources of the community FI. In this episode, we talk with Chris Turnley, EVP of Member Experience at University Federal Credit Union (UFCU) in Austin, Texas. Chris shares how his background in consumer services and fintech has helped shape a winning strategy for UFCU. Chris shares his insights on the evolution of financial services, the fallacy of all or nothing in digital transformation, and the balancing act creating a standout member experience requires. Topics we dig into:* Coming to a credit union from a tech background* Balancing technology and trust in member experience* Reframing the purpose of branches in member service* The impact of Texas's economy and geography on opportunity* The key skills and capabilities for relevance today and tomorrowContact Chris via his LinkedIn profile: https://www.linkedin.com/in/christurnley/Or, visit UFCU at https://ufcu.org/

In this episode, Laura Worzella, Chief Operating Officer of OneAZ Credit Union, discusses building a strategy for long-term success based on market and demographic trends. From slow-moving generational shifts in population to the rapid changes new industries can bring to a region, staying ahead of your community's evolving needs can be difficult. Laura shares OneAZ's insights and approach to doing just that with the changing face of America's Southwest.Highlight from our discussion:* The unique demographic shifts in Arizona* The growing industrial and SMB * How all of these factors influence expansion and technology investment* Implementing Agile as a business philosophy* Internal organization to reduce frictionOneAZ's website: https://www.oneazcu.com/Their community partnership examples: https://www.oneazcu.com/about/news/2023/oneaz-credit-union-partners-with-novle-community-activators-to-better-serve-latino-community/Their SMB partnership with State Forty Eight Clothing: https://www.youtube.com/watch?v=yEj_w7zcQ4c Laura's profile on LinkedIn: https://www.linkedin.com/in/laura-worzella-65288ab/

Everyone is worried about CRE debt, but there is less consensus about how much to worry. In this episode, we talk with Greg Freedman, co-founder and CEO of BH3 Management. BH3's business model was born out of the mass of distressed commercial real estate paper in 2009. Greg shares with us his perspective on the past 15 years of the market, how today compares to the last crisis, and what indicators and events will shape the coming months and years.Highlights from our conversation:-Starting during the great financial crisis-Marrying distressed debt and real estate development-BH3 investment thesis and supporting market trends-The cyclical nature of CRE lending-2009 vs. 2024-Asset prices and what will most impact the futureFor more about Greg and BH3, visit: https://bh-3.com

For community FIs, spending on digital channels and other technology often comes at the expense of opening new branches. This isn't the case for Ascend Federal Credit Union of Tennessee. President and CEO Matt Jernigan shares the growth strategy of the $4 billion credit union and the central role physical branches play. Matt talks about how design, technology, and winning local relationships help Ascend meet the needs of a growing member base and keep a lid on expenses.Highlights from the episode:-The expansion challenges of Middle Tennessee-The importance of physical branches, even within a digital-driven strategy-Innovations in branch design and technology-Balancing Cost and Member Needs-Adapting to local needs-The operational challenges and key partnerships needed for successFor more, visit https://ascend.org/

In this episode, we discuss the history of economic inequality in America with Kevin Cohee, Chairman and CEO of OneUnited Bank. Kevin shares how his family's legacy in financial justice shaped his upbringing and the vision he has for the way banking can play a role in equality and justice today. You can learn more about OneUnited's founding and growth in our earlier discussion with President and COO Teri William in episode #12.Highlights from our discussion with Kevin:* Kevin's Family Legacy* Their connection to the founding of the Greenwood District of Tulsa, Oklahoma* The 1921 Tulsa Massacre and Its Aftermath* The Significance of Juneteenth* Financial literacy's role in equality* OneUnited's innovations in banking technology* The future of financial servicesFor more, visit OneUnited.com

In this episode, we talk with Elizabeth Magennis, President of ConnectOne Bank, about the resilience and adaptability of retail banking in today's market, particularly in the face of economic downturns and the rise of fintech. Elizabeth offers insights into ConnectOne's growth and acceleration during the 2008 financial crisis and its continued evolution, even living in the direct shadow of the largest Wall Street banks.Highlights from our discussion:* Starting out in 2005 and running into 2008* The underserved small business customer* The opportunity for banks as advisory roles to their clients* Positioning against fintech and larger mega-banks * The CRE market and whether it represents a systemic risk* Using clients' needs and interests to drive product and geographic expansionFor more on ConnectOne, visit https://www.connectonebank.com/

Tackling systemic problems like access to housing requires aligning all the way from partnership to the very core of an institution's charter. Washington State's Verity Credit Union is in the process of reinventing itself and its ecosystem of partners to do just that. Ziquora Banks, Chief Impact Strategy Officer, joins us to share Highlights from this episode:- Verity's almost 100-year history and reorienting its mission on the changing needs of its members- Pursuing a Community development financial institutions (CDFIs) certification - Recruiting leadership as part of a mission realignment- Access to housing as the tip of the spear- Innovating in finance and picking the right partners in the communityFor more of Verity's approach, visit VerityCU.com.See their 2023 impact report, which explains how innovating on credit scoring helps them meet their impact goals and risk targets.See this link to the Bookings Institution analysis of the role home equity played in the recent growth of Black household wealth.

In this episode, we follow up on our discussion of the pressure facing community FI leaders and look at only a few of the many ways they are taking bold and differentiated positions in the market. These few examples demonstrate the seemingly endless ways in which community banks and credit unions are earning the loyalty and continued growth of their customers and members. By picking unique offerings and approaches, these organizations are exploiting a nimbleness and sometimes narrowly focused approach to service that is proving difficult to compete with.In this episode, we hear from past guests, including:Teri Williams of OneUnited BankLex Ford of Climate First BankJonathan Encarnación of Community First FundRyan Harvey of Family Trust FCUCarma Peters of Michigan Legacy Credit UnionTo listen to their full stories, visit BehindTheVaultPod.com

In this episode, we review our more recent discussions with community FI leaders and identify the pressing themes they are facing in today's market. We look at the common demands and priorities that are driving the agenda of community banks and credit unions. We hear from a broad set of leaders and their approach to increasing regulatory demands, growth, changing customer demographics, and keeping relevant with new and innovative customer experience and offerings.In this episode, we hear from past guests, including:* Gary Golden of BHCU* RJ Grimshaw of UniFi/Bank of Ann Arbor* Brett Fisher of Skyla Credit Union* Economist Gazi Kabas* Cathy Landtroop and Lubbock Smith of Vista Bank* Bree Shellito of Ent Credit Union* Amy McGraw of Tropical FCU* Lex Ford of Climate First Bank* Jonathan Encarnación of Community First FundTo listen to their full stories, visit BehindTheVaultPod.com

New or de novo banks and credit unions are rare, even more so when born from existing community institutions. Pennsylvania's Community First Fund did just that in 2022. Jonathan Encarnación, Senior Vice President and Chief Retail Officer, shares the story of Community First Fund, the underserved market it serves, its growth through mergers, and its launch of a consumer deposit institution after 30 years of commercially focused lending.Some highlights from the episode:-Their legacy in micro-lending, affordable housing development, and grocery/food distribution-The role non-financial outcomes play in measuring the success of initiatives-Their strategy of addressing community gaps in access to housing and fresh food in addition to financial services-The unlikely partnerships that have accelerated Community First Fund and what helped launch the credit unionClick here for Community First Fund's impact report

While every financial institution has education in its service model, differentiating on financial wellness requires a deliberate and sustained effort. In this episode, we hear from Bree Shellito of Colorado's Ent Credit Union. Bree shares Ent's history and playbook for scaling financial coaching from a small core team to all of their 500,000 members and community touchpoints.- Ent's model for coaching as both a member service and community support- Which 3rd party certifications were most useful to Ent, and how they create their training material- The difference in coaching Ent's own employees vs. their members- How Ent's team is organized, ensuring alignment of incentives and managing the currency or skills across 50 branches and community outreach teams- How Ent customizes their coaching experience and material and then measures success For more on Ent's programs, visit: https://www.ent.com/education-center/To join Bree's monthly financial wellness practitioner roundtable, visit here.

Retooling how your key stakeholders interact with your brand is a high-stakes exercise. Addressing the need to stay relevant, the divergent generational needs of your members and customers, and aligning your critical front-line employees can be a juggling act. Michigan Legacy Credit Union is in the process of reinventing not only the look and feel of its branches but also how it directly interacts with its members. In this episode, President and CEO Carma Peters shares the plans and lessons learned so far in redesigning the 78-year-old credit union.Highlights from our conversation:- Benchmarking member vs. transactional usage by channel- The decision between video teller and interactive teller machines (ITM)- Executing digital transformation and brand reinvention simultaneously- Addressing generational issues without alienating anyone, including the CU's front-line employees- Rationalizing what services and experience to deliver across channels and being out-front as a leader as part of change.For more about Michigan Legacy Credit Union and to see their virtual branch tour, visit: https://michiganlegacycu.org/locations/

Community involvement that works requires both authenticity and creativity to meet changing and generational needs. In this episode of Behind the Vault, we look at Vista Bank's approach to community outreach, which uses a blend of financial education and sports. Joining us are Cathy Landtroop, Chief Marketing, and Communications Officer, and Lubbock Smith, VP and Director of Community Development and Outreach of the 112 year old institution.Highlights from our discussion:- Meeting the broad and diverse needs of a community that spans from urban to rural communities- Using financial literacy as a doorway into promoting entrepreneurship and careers in financial services- The special role sports play across Texas, the unique needs of high school athletes, and helping with the "sudden wealth" problem NIL (Name, Image, and Likeness) deals present for college athletes- Vista Bank's investments in community organizations and the opening of a new branch in South Dallas, the first in over 30 yearsMore on Vista Bank's South Dallas branch opening: https://www.vistabank.com/vista-bank-ceo-aims-to-level-the-playing-field-with-new-branch-near-fair-park/The bank's financial literacy programs: https://www.vistabank.com/resources/financial-literacy-resource-center/

The merger of non-profit financial institutions like credit unions brings unique challenges and measures of success. With the recent mergers of Charlotte Metro Credit Union, Premiere FCU, and Parsons FCU into the $1.5B Skyla Credit Union, COO Geri Hopkins and CFO Brett Fisher share their first-hand experience managing transactions like this. In this episode, we discuss the importance of market analysis, satisfying different boards and memberships, and addressing the overall change management and technology hurdles.Episode Highlights:- The critical role boards play in mergers on both sides of the deal- Why relationships and cultural fit are more significant factors of success than financial consideration- The 1+1=3 aspect of technology in a merger and creating a financial services CUSO in the process- Managing change, minimizing distractions, and leveraging the experience and skills of mergers when the integration is done- What "done" looks like in mergers of this sizeFor more about Skyla CU or to contact the team about their merger experience, visit https://www.skylacu.com/

The operative word in community banking is community. Sometimes, a community extends beyond a local geography. OneUnited is an example of a community financial institution that has evolved to meet this definition of community. With over $600M in assets, OneUnited is the largest black-owned bank in the US. It leverages technology and its unique approach to banking to serve a distinct community of customers across the country.Highlights from this episode:- The strategy that drove a string of acquisitions to the bank's footprint today- Overcoming distrust in banking and getting past perceptions of the 2008 financial crisis- Their use of technology to unify operations across the bank and deliver a modern digital experience for customers- OneUnited's structure as a Community Development Financial Institution (CDFI) and how that aligns with and enables their mission- The critical role education plays in the bank's approach to service- OneUnited's approach to sustainable CRA activitiesFor more info on OneUnited and Teri's story, visit OneUnited.com.

The cliché that a failure to plan is a plan to fail often rings true of local initiatives of community FIs. Ryan Harvey, CEO of Family Trust FCU of Rock Hill, SC, shares their approach to community impact and the deliberate efforts they've made that led to 1 in 5 residents joining their credit union, even in the shadow of banking metropolis Charlotte.Highlights from the episode:- Family Trust's philosophy for local impact and their focus on grantmaking to local grassroots organizations to build up capacity in their own community- The institution's use of mentoring and networking to improve the impact of monetary investments- The ways this philosophy leads to some traditional and non-traditional programs, including how the CU partnered to bring a free, all-electric bus system to Rock Hill- The alignment within the CU to fostering and supporting a culture of volunteerismTo learn more about Family Trust's local efforts, visit their 501(c)3 foundation website https://thecommunitypartnershipfoundation.org/

Sometimes, the name says it all. This week, we speak with Lex Ford, President and Director of Climate First Bank. A Central Florida de novo bank started in 2021, Climate First aims to use banking to reduce atmospheric CO2. But the bank isn't just for those looking to work with like-minded businesses. Lex shares the organization's philosophy and approach to internal alignment and bringing as much of their community along with them.Highlights from our discussion:* Climate First's origins and unique structuring as a B Corp* The bank's approach to branch development and use of LEED certification* Creating bespoke solutions like loan origination software to speed the financing of solar projects* Why they cater to traditional fossil fuel customers* Using their own annual reports as impact statements and an example of accountability and transparencyTo learn more, visit https://climatefirstbank.comThe bank's annual impact statement: https://www.climatefirstbank.com/our-impact

Few things have impacted community financial institutions like the regulatory landscape that emerged from the Great Recession. Our guest, Miriam Mitchell, Chief Lending Officer at Addition Financial, shares her insights on adapting to the Dodd-Frank Act and the approaches they are taking with today's housing market.Highlights from our discussion:* The two-edged regulatory sword of Dodd-Frank, and how it both helped and hurt individuals served by community FIs.* Navigating the compliance requirements and the outsized burden on smaller institutions.* The role of local lenders have played in the turbulent real estate market and the unique local issues in Florida.* The emerging issue of rapidly rising lending and insurance costs and how Additional Financial is responding.Addition Financial: https://additionfi.comMiriam Mitchell: https://www.linkedin.com/in/miriam-mitchell-mba-480b2ba/

How does the age distribution in your community directly impact your institution's risk? In this episode, we talk with Gazi Kabas, co-author of the oft-cited paper Population Aging and Bank Risk Taking, which examines the effects on community banks and credit unions when the average age in their served markets quickly grows older.Highlights from our discussion:- Why this team of European economists are studying American financial institutions, and how their findings are not just relevant in the U.S.- How demographic changes are impacting the risk profile and lending practices across the country.- A look at the indicators of detailed analysis of loan-to-income ratios provides insights into banks' lending behaviors, highlighting a propensity for increased risk-taking as populations age.- The outsized risks for smaller community FIs.- Some potential ways regulators and individual institutions can mitigate the individual and systemic risks to banking. The full text of the paper can be found here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3430184For more on Dr. Kabas's research and to contact him, visit: https://gkabas.netlify.app/

In this episode ww dig into how close ownership opens up a different way of doing business. Glenwood State Bank president Peter Nelson shares the profound impact a purpose-driven approach can have on banking strategy and community engagement. Highlights from our discussion:- The history of the bank and the shift in measuring results from short-term financial returns to stewardship and long-term community impact.- How the multifaceted nature of their community has shaped their diverse portfolio, including personal banking, commercial business, agriculture, insurance, and real estate.- The challenges of maintaining the commitment to purpose through economic downturns.- The advantage of the bank's values and purposes for attracting and retaining employees aligned with the bank's mission.- The challenges of managing family business dynamics, including working with relatives and succession planning for future generations.For more information or to connect with Peter Nelson and learn about their unique approach visit https://glenwoodstate.bank/.

In this episode, we look at lessons learned from radically embracing a digital-first experience. Amy McGraw, VP of Marketing and Chief Experience Officer at Tropical Financial Credit Union, shares insights from their journey and the hard choices success demands.Highlights from our discussion:- Putting personalization first and the ability to break out of traditional marketing cadences.- The importance of technical partners inside and outside the organization and the role Fintech and CUSOs play.- Making the decisive and hard choice between physical and digital presence.- The critical role core banking providers play.- The tactics for providing a personal experience and keeping a "people helping people" mindset in a digital-first organization.- The overlooked key capabilities in organizational change management essential to success.For more information about Tropical Financial Credit Union and its innovative approaches to customer experience, visit https://www.tropicalfcu.com/.

In this episode, we delve into the journey of BHCU with CEO Gary Golden. With a history going back to 1952, BHCU is taking on a new growth and expansion approach. We look at the strategies and tactics Gary and his team employ to deliver new paths for sustainable growth for an older credit union.Highlights from our discussion:-The strategic pivot to a community charter from a select employer group (SEG) charter and the geographic expansion into adjacent counties.-The critical role small businesses play for new business lines and a source of new members.-The grassroots approach to growth and BHCU shift in marketing spend from traditional advertising to one-on-one connections and personal relationships.-The selective use of technology in enhancing customer experience and balancing that with their differentiating in-person approach. -The role M&A plays in their plans and the unique challenges for credit unions to succeed with this approachTo learn more about Gary and BHCU, visit https://bhcu.org.

In this episode, we talk with Mark Arnold, President and Founder of On the Mark Strategies, to discuss the importance of customer experience in community financial institutions. We also discuss the often missed tactics for improving the experience as a powerful competitive advantage.Topics discussed:-Why customer experience is a competitive advantage, and how institutions could be missing out on up to 40% of potential business due to subpar customer experiences.-Identifying gaps in service, the Johari Window, and where to look for the most common areas community banks and credit unions underdeliver for their customers and members.-The common blind spots that trip up FIs and how they affect the organization's performance and growth.-Working customer experience assessments into planning and keeping up with changing consumer expectations."We've learned to glance at our competitors and glare at ourselves."To learn more about Mark Arnold and his work, visit https://markarnold.com.

In this episode, we hear the story of the Bank of Ann Arbor's acquisition of UniFi Equipment Finance and its successful entry into an entirely new business line. CEO R.J. Grimshaw joined UniFi shortly after their purchase and led the integration and rapid growth of the business as a product line of a regulated bank.Highlights from our discussion:-Transforming a 35-year-old company into a new culture, implementing new business systems, and introducing the compliance and regulatory structures of a regulated bank.-Avoiding the biggest mistakes banks make buying a commercial loan or leasing organization-Navigating the transition from a ZIRP environment into the rapidly rising rates, inflation, and asset cost growth, and finding new sources of business when OEM is kneecapped by supply chain issues."When it comes to the commercial asset financing business, don't dabble!"To learn more and contact R.J. visit https://rjgrimshaw.com.Think you'd be a great guest on the show? Apply HERE.

In this episode, we sit down with Gregg Margosian, Chief Operating Officer of Toshiba Global Commerce Solutions, a company deeply embedded in the world of retail store systems. Gregg provides insight into emerging trends of consumer behavior and how that is impacting payment systems in the US.Topics discussed:-Why self-checkout is becoming the norm in retail, with a preference of 85% for shoppers-How the pandemic reshaped mobile payments and what this means for the future of contactless payments like ApplePay-The persistence of cash in an increasingly digital world, and the cultural factors driving it-Potential breakthroughs in mobile payments and whether a major player could revolutionize the industry-The challenges and opportunities for retailers in the changing payment landscapeWant to learn more about Gregg's work at TGCS? Check out their website HERE. Think you'd be a great guest on the show? Apply HERE.