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THE EMPIRE STATE MAGAZINE FOR FINANCIAL EXECUTIVES & PROFESSIONALS • ISSUE ONE 2019
WONDER NO MORE
Women Are Moving Forward & Seizing Power
How Your Bank Should Adapt
GETTING TO KNOW YOU WHOLE LATTE BANKING SUPER YEAR FOR PROFITS
Banks Adjusting To New Faces Capital One Cafés Are Stirring 2018 Will Be Hard
In D.C. And Albany Things Up For Millennials To Match
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CONTENTS
JAN
ISSUE ONE FEB
2019
What's in your coffee?
STAFF
PUBLISHER
Vincent M. Valvo
ASSOCIATE PUBLISHER
Barb Dimauro
9
EXECUTIVE EDITOR
PAGE
John Hassan
MANAGING EDITOR
Keith Griffin
OPERATIONS MANAGER
Kurt Schenher
ONLINE CONTENT DIRECTOR
Navindra Persaud 4 20 26
GRAPHIC DESIGN MANAGER President's Message Did You See? Anything But
Stacy Murray Teamwork remains a key Highlights from the Banking
GRAPHIC DESIGNER for IBANYS Banking New York John Witkowski,
Scott Ellison Newsletter
6
President of IBANYS
If you would like additional copies of
Banking New York Public Affairs Update
22 28
Call (860) 719-1991 or New political winds
Talking Banking Profits
Jerome Powell, Stanley New York banks and
email kschenher@ambizmedia.com blowing from Washington,
Marcus, Jamie Dimon, credit unions did very
DC to Albany
Gary Vaynerchuk well in 2018
9 24
Opinion
Loans and lattes?
Education
It's Barret for banking
12
News
People on the move
www.ambizmedia.com 14
© 2019 American Business Media LLC All rights reserved. Statistics
Banking Mid Atlantic magazine is a trademark of American Women are better bank
Business Media LLC. No part of this publication may be reproduced customers than men
17
in any form or by any means, electronic or mechanical, including
photocopying, recording, or by any information storage and retrieval
14
system, without written permission from the publisher. Advertising,
editorial and production inquiries should be directed to: Women and
Consider gender
PAGE
Leadership
American Business Media LLC
The gender gap problem when planning
345 North Main St., Suite 313
West Hartford, CT 06117
new services
Issue One | 3
IBANYS PRESIDENT’S MESSAGE | By John Witkowski
A Strong Alliance & Partnership
On Behalf Of Community Banks
A
s the saying goes, “Working together is Over the past several years, IBANYS has
better than working alone.” In the case strengthened our ties with ICBA. A number
of working on behalf of New York’s of New York community bankers active in
community banks, that is more than IBANYS leadership play key roles in the national
an axiom – it’s a fact. Believe me: As a former association as well. Bob Fisher, President & CEO
college and professional football quarterback, of Tioga State Bank, was recently nominated as
I understand only too well the importance of Vice Chairman of the ICBA Board of Directors
teamwork and togetherness. and goes into the chair this spring. He will be in
line to become ICBA Chairman in two years.
The Independent Bankers Association of New
York State (IBANYS) is the only state trade Bob, a fifth-generation community banker,
association in New York that solely represents will be the third New Yorker to serve as ICBA
independent community banks –including Chairman in the past decade. Sal Marranca
commercial banks, savings banks and savings (former Chairman & President of Cattaraugus
& loans. . .but that doesn’t mean we’re County Bank) and John Buhrmaster (1st National
working solo. We are fortunate to have a strong Bank of Scotia) preceded him in the position.
relationship and alliance with the Independent Significantly, Sal, John and Bob have each also
Community Bankers of America (ICBA). served as Chairman of IBANYS, and have held a
Like IBANYS, ICBA’s mission is to create an number of senior positions in both associations.
environment where community banks flourish, We also have three national delegates to ICBA
which they do nationwide. (John Buhrmaster, Bob Fisher and Mike Wimer,
President & CEO of Cattaraugus County Bank).
4 | Banking New York | 2019
IBANYS BOARD OF
DIRECTORS
Chairman
Thomas Amell
Pioneer Bank, Albany, NY
Vice Chair
Michael Wimer
Cattaraugus County Bank, Little Valley, NY
Secretary/Treasurer
Thomas Carr
Elmira Savings Bank, Elmira, NY
Immediate Past Chairman
R. Michael Briggs
USNY Bank, Geneva, NY
______________________________
BOB FISHER JOHN BUHRMASTER MIKE WIMER
John Buhrmaster
First National Bank of Scotia, Scotia, NY
The commitment of these individuals to our industry – and the associations Randy Crapser
representing us – is remarkable. Bank of Richmondville, Cobleskill, NY
In addition, I have the privilege of serving as a member of ICBA’s federal Anthony Delmonte
Bank of Akron, Akron, NY
delegates board, and on the board of ICBA Securities Board of Directors. I am
also honored to chair the Council for Community Bankers Association (CCBA), Director Emeritus
which includes the leadership of all the state independent bank associations in Ronald Denniston
First National Bank of Dryden, Dryden, NY
the country. I am also involved in their Barret School of Banking, a non-profit,
independent school whose members are executives from banks and firms Christopher Dowd
involved with financial services. (See page 20 for more on Barret.) Ballston Spa National Bank, Ballston Spa, NY
John Eagleton
All these outreach involvements benefit our members, providing access to Steuben Trust, Hornell, NY
resources and peers that serve to make their banks stronger and more informed
Robert Fisher
than if they were going it alone. So, too, do our partnerships with our IBANYS Tioga State Bank, Spencer, NY
associate member firms and our preferred partners, who bring their products,
services and expertise to our table. Their commitment to working with us is Gerald Klein
Tompkins Mahopac Bank, Brewster, NY
vital in today’s incredibly challenging and demanding environment.
Douglas Manditch
While the preponderance of IBANYS members are located in regions considered Empire National Bank, Islandia, NY
as “upstate” we have been working to broaden our footprint in some other areas
Mario Martinez
of the state where there is opportunity and need. We have coordinated with a Catskill Hudson Bank, Kingston, NY
number of community banks located in the downstate/ New York City region
and will be working with them on projects, including educational programming. Paul Mello
Solvay Bank, Solvay, NY
We believe that IBANYS has much to offer them, and we’re excited to explore
this new concept. Theresa Phalon
North Country Bank
It’s the same approach that was taken back in August 1974, when a group
Anders Tomson
of New York community banks wanted their own voice and representation Capital Bank/ a division of Chemung Canal
in matters impacting their institutions. They wanted their own association, Trust Company, Albany, NY
working only for local independent banks in New York State. So, they met and
Kathleen Whelehan
established the Independent Bankers Association of New York State. Upstate National Bank, Rochester, NY
Steven Woodard
Our mission today is the same as theirs was then: To Alden State Bank
promote and strengthen the vitality of community banking
throughout New York State and to share a commitment to IBANYS STAFF
meeting the financial needs of local communities. We are John J. Witkowski
excited to share that mission, and to find new ways to make President and CEO
it a reality. ■ Stephen W. Rice
Vice President of Government Relations
John Witkowski is president and CEO of the Independent and Communications
Bankers Association of New York State. He may be reached at William Y. Crowell III
JOHN WITKOWSKI johnw@ibanys.net or (518) 436-4646. Legislative Counsel
Linda Gregware
Director of Administration
and Membership Services
Issue One | 5
PUBLIC AFFAIRS UPDATE | By Stephen W. Rice
A New Day In Albany & Washington Brings
New Challenges For Community Banks
T
he dramatic changes to the political landscape Sanders, who has expressed an interest in learning more
brought about by last November’s elections are about our industry and institutions.
now a reality. After years of divided government,
Albany is now completely under Democratic control: In terms of the banking industry, the Governor plans
Assembly, Senate, Governor’s office and all statewide offices. legislation to prevent abuse of "confession of judgment" and
Through the Governor’s State of the State and Budget stop predatory merchant cash-advance loans. In his proposed
presentation -- and a number of stand-alone bills passed by state budget, Article VII Regulation of student loan servicers
the Legislature -- we have already seen a new era of social appear to be unchanged from last year’s budget. It would
policy. The legislative approach and policy direction will be require student loan servicers to be licensed by DFS and
quite different from the past, when Albany was operating would establish a regulatory framework for the industry in
under a Democratic Governor and State Assembly but a New York. The bill is necessary to implement the Fiscal Year
Republican State Senate. 2020 budget. Also, financial institutions that are required
under Dodd-Frank to create subsidiaries received a sales
tax exemption for transfer of properties and services to such
subsidiaries. The exemption is extended from June 30, 2019
to June 30, 2021.
Taxes are also on Albany’s agenda, including continuing and
extending the millionaires tax, making permanent the cap on
property taxes, and several other initiatives.
One tax issue overlaps Albany and Washington: the ten
JAMES SANDERS
Obviously, there has been a significant overturn among
individuals holding key positions in the Legislature and the
Executive Department:
Senators Andrea Stewart Cousins of Yonkers and James
Sanders of Queens are the new Democratic Senate Majority
Leader and Banks Committee Chairman, respectively. Their
governing perspective and legislative priorities are markedly
different than their predecessors, Republican Senators John
Flanagan (now the GOP Minority Leader) and Elaine Phillips.
The Assembly also has a new Majority Leader (second in
leadership) as well: Crystal Peoples Stokes (D-Buffalo) is
Speaker Carl Heastie’s senior Deputy. percent cap on State and Local Tax deductions (“SALT”)
imposed by the 2017 federal tax law. The Governor and State
There is also a new Superintendent at the State Department Budget Director say it is damaging New York’s economy and
of Financial Services: Linda Lacewell, a former federal threatens present and future tax revenue. Cuomo has met
prosecutor who has been a top aide to Governor Cuomo with President Trump and Lawrence Kudlow, the Director of
during his tenure as Governor and State Attorney General. the National Economic Council to seek a reversal of the cap,
She succeeds Maria Vullo in the position. although U.S. Senate Finance Committee Chairman Chuck
Grassley said he does not plan to revisit it.
IBANYS and our members have reached out to these new
officials, to the 39 new members of the state Legislature Early days of the legislative session have been marked by big
and the five new members of our New York Congressional picture social issues, as well as joint legislative hearings on
Delegation to ensure they have a good understanding of the Governor’s proposed budget. This process will continue
community banks, and our importance to the state and local to unfold, with an April 1 deadline for approving the budget.
economies and the social fabric of our communities. We Legislative committees have begun to meet, and several bills
recently had a successful initial session with Banks Chairman are on the Banks Committees agendas.
6 | Banking New York | 2019
The agenda of the House Financial Services Committee, (with Banks Committee Chairman Mike Crapo still on
under Chair Maxine Waters (D-CA) will likely include the job) seems likely to have a very different agenda and
affordable housing, homelessness, regulatory oversight, approach.
large bank oversight, fintech oversight, GSE reform, and
a few “must do” measures such as reauthorizing the There are 6 New Yorkers on the House Financial Services
national flood insurance and the terrorism insurance Committee: Democrats Carolyn Maloney of Manhattan,
programs. Greg Meeks of Queens, Nydia Velazquez of Brooklyn
and Alexandria Ocasio-Cortez (D-Bronx & Queens), plus
The Senate Banking Committee agenda, under Republicans Peter King and Lee Zeldin, both from Long
Chairman Mike Crapo (R-ID) will be addressing the Island. Rep. Maloney (D-Manhattan) and Rep. Meeks
nomination of Mark Calabria, chief economist to Vice (D-Queens) will chair the Subcommittees on Investor
President Pence, as the next Director of the Federal Protection, Entrepreneurship and Capital Markets
Housing Finance Agency (FHFA). He testified before and Financial Institutions and Consumer Protection,
the Committee and vowed to lead the agency and make respectively. Of course, Senator Schumer continues as
it a “world class regulator” (he had previously been the Senate Democratic Leader. His Senate colleague,
critical of it at different times before his nomination). The Senator Gillibrand, has announced her campaign for
Senate Committee will also address GSE reform, as the the 2020 Democratic presidential nomination -- and two
administration had indicated it plans to do so as well. other New York Democrats (former New York City Mayor
Chairman Crapo is also said to be increasingly focused Mike Bloomberg and current Mayor Bill de Blasio) are
on the privacy aspect of big data collection and security. actively considering their own runs for the presidency.
There is debate in Washington and Albany over how IBANYS will be travelling to Washington at the end of
banks might fit into cannabis-related businesses. April to meet with the members of our congressional
Community banks seek safe harbor from federal delegation on the hill. In addition to the Financial
sanctions for financial institutions that serve such Service members, several other New Yorkers hold key
businesses in states where cannabis is legal. Our partner positions. Rep. Nita Lowey (D-Westchester) chairs the
ICBA has testified in support of the “Secure and Fair House Appropriations Committee; Rep. Jerrold Nadler
Enforcement Banking Act.” This would provide a safe (chairs the Judiciary Committee, and Rep. Hakeem
harbor from federal sanctions for financial institutions Jeffries (D-Brooklyn/Queens) is Chairman of the House
that serve cannabis-related businesses in states where Democratic Conference, a key leadership position. We
cannabis is legal. The SAFE Banking Act provides that will also participate in ICBA’s Capital Summit. Among
in these states, federal banking regulators may not take the speakers we will hear from is Senate Banking
any prejudicial action against a bank solely because it Chairman Mike Crapo, the champion of last year’s
serves a cannabis-related business. Cannabis remains legislation (S.2155) that provided the most sweeping
illegal at the federal level, and the community banking regulatory relief for community banks since the
industry does not advocate its legalization. The Act may enactment of Dodd-Frank in 2010.
be approved in the House, but appears unlikely to gain
traction in the Senate. In New York, medical marijuana With 2019 underway, and 2020 politics on the horizon,
is legal, and efforts are underway to legalize recreational community banks face a
use as well. Industrial hemp is also very much on the challenging environment in our
horizon. nation’s and our state’s capitols. ■
Like Albany, Washington is a changed environment, with Stephen W. Rice is Director
a Democratic House of Representatives led by Speaker of Government Relations &
Pelosi, and a new Financial Services Chair in Rep. Communications for the Independent
Maxine Waters of California. The Committee’s agenda Bankers Association of New York
will likely focus on regulatory oversight, affordable State
housing and GSEs. The Senate Banking Committee STEPHEN W. RICE
Issue One | 7
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8 | Banking New York | 2019
OPINION | By Michael S. Kirkpatrick, Special to Banking New York
in your wallet
cof f e e ?
What’s
rick
pat
. Kirk
ichaelS
By M
arm: Capital One’s desire outright question its existence. The bank branch
to “unbank” the brand experience hasn’t changed very much over the years
by launching several café and feels as outdated as a fax machine. And this is in
model branches, designed an era where retail giants like Apple have raised the
to be warm and inviting bar for in-store experiences. While the comparison is
environments without any a little unfair, we can look to the retail sector for some
high-pressure sales, is an insight into consumer behaviors in understanding
interesting idea. However, what the branch experience should be and if Capital
having visited recently, I didn’t One’s café strategy is in sync with the approach of
exactly know what to make of it. leading retailers.
When Capital One bought ING Direct in 2012, One factor retailers acknowledge and design for
the deal included ING’s Orange Cafés. 18 years ago, is the evolution of the shopper’s journey. Nowadays
ING opened its first café in the United States in the shopper’s path to purchase increasingly crosses
New York City, after successes in Canada, Australia, between physical and digital worlds. Retailers are
France, Italy, and Spain, as an attempt to create a working to devise seamless omnichannel experiences
new experience with customers. With that history to best serve these changing behaviors. Today’s
as a backdrop, it’s interesting to see the buzz these shoppers are looking for a stress-free shopping
days around Capital One. Coffee and its service is experience that supports an increasing desire to visit
provided by Peets, Wi-Fi is free, and pastries are the physical store to “test drive” products firsthand
from local purveyors, a nod to Millennials who like and prior to price-comparing and purchasing –
to support their neighbors. Though it’s not required behaviors which are moving increasingly online. With
for purchase, Capital One cardholders get a 50% packaged goods, this makes a lot of sense but with
discount on drinks. products like mortgages, loans and other financial
And they have steadily expanded on the idea over products it’s a little more complicated. Because these
the years with 30 café branches in the United States products are intangible and complicated, having
now, including Union Sqaure in New York City, human beings standing by to help simplify things
after inheriting 11 total in the US and Canada in and to answer questions is a winning strategy that
the purchase. Clearly, there is something about the nicely aligns with consumer preferences.
bank/café model that is working for Capital One. So, what do the people that visit these cafes think?
It certainly is time to retool the branch if not I asked an appropriately scruffy young man sitting
Issue One | 9
at a beautiful (walnut?) table sipping needed help with bank stuff I guess want a reinvented relationship
coffee out of a ceramic mug while I would ask…” motioning to a with banking and financial services.
flicking the trackpad of his Apple CapitalOne expert nearby. That’s been proven by the scores of
laptop. “I come here to do some The relaxed atmosphere and successful fintech companies across
work as a change of venue… There’s aesthetic is the draw and the banking wealth management, lending and
more space and more tables here – is an afterthought or not a thought payment sectors. Payment companies
Starbucks is further away and always at all for those camped out with Paypal and Venmo have had great
too crowded.” When asked if this felt headphones and laptops. It’s an success delivering a reinvented way
like a reinvented bank, he chuckled alternative to Starbucks or Café Nero to pay and share money and others
slightly, “I have no idea. Sort of… If I and that feels like what Capital One have since followed by rethinking
is going for – but is it sustainable as a savings, checking, bill paying and
business investment I wonder? “It’s a various other components of the
al offering from Google, A good concept… Coffee is an everyday banking experience.
nanci pple
,P
ritual”, I overheard an equally
intrigued visitor mention
It’s not surprising that many of the
innovators that provided new and
i
af to one of the Capital One reinvented solutions to the market
ayP
folks standing by. To me were not incumbents like Bank of
y
75%
db
al, o
it’s reminiscent of the America, Citi, JPMorgan or others.
xcite
old digital strategy Generally, consumers are more
Squarr
from the early 2000’s: open to invention from a fresh new
’d be more e
get people to your company that can authentically claim
website and the they’ve looked at the situation in an
e over their nation
economics will work entirely new way. These disruptors
themselves out. can step into an industry and say
of millenials Another key to the market leaders We’ll take
uthey
success factor for it from here without a legacy of
say ... Capital
contend
One
with
something billed as
to
on
brand perception to overcome. In a
recent banking survey of millennials,
75% say they’d be more excited by
w
“reinvention” is their a financial offering from Google,
ideb
nk. reputation as a reinventor. Apple, PayPal, or Square over their
a
I have no doubt consumers nationwide bank. Capital One’s
10 | Banking New York | 2019“Capital One is to be commended for doing something
so odd and courageous (and not at all inexpensive).”
success at reinvention of the branch model especially if Amazon, a company while masking the real intentions. “Are
goes beyond just convincing people with a solid track-record of innovation, they watching what websites I visit on
to “bank differently”. In some ways, decides to enter the market with a the free wifi?” Because the strategy is
they’re also asking customers to believe physical presence. And with 500 Whole so unconventional – and the reputation
Capital One, in its 31st year, is a Foods stores, this is a rumored and real of banking is so poor - it could be seen
company with the perspective required possibility. as a trick, even if it isn’t. Customer
to truly reinvent the branch. The final and perhaps most perception is a real and serious
Few established brands or companies challenging issue I see here is challenge.
succeed at convincing consumers to something that’s been a scourge for I paid for my coffee and sat for a while
believe in a new ethos without a long the banking industry for years: a lack surveying the beautifully appointed
campaign of demonstrated successes of transparency. Let’s get real - most surroundings. Lots of wood, leather
that earn incremental trust while banks (especially the big boys) are seen fabrics and just the right level of
demonstrating a true commitment to as untrustworthy by the public. There designer lighting all created a mood that
change. Apple could never have released is an inherent “You’re screwing me, I absolutely had me wanting to spend time
the iPad – a device about which David just can’t figure out how” sentiment here. As I sat contemplating “Where
Pogue said “I don’t know what I need amongst most consumers that has are we going with this?” I couldn’t help
this for but I’m buying it anyway.” - led many - especially millennials - to but root for this to work.
without the prior wins with consumers explore new ways to move, lend and Capital One is to be commended for
(Mac, iPod, iTunes). Consumers are manage their money. Digital upstarts doing something so odd and courageous
savvy, and these announcements are have emerged such as Ally, Moven and (and not at all inexpensive). They must
often met with skepticism. Skepticism Aspiration and a slew of many others to do something to stay relevant and
drives behavior and can be a wet serve this appetite to defect. I spoke to compete as do the all large, national
blanket on even the strongest of ideas. one of the Capital One employees on a banks. Behaviors are changing. They
So Capital One’s claim at reinventing return visit. He had the kind of pleasant may be ahead of the market here and we
the branch is brave but I’m not sure nature and friendliness that is clearly will all soon discover how natural this
they’ve earned that opportunity in the recruited for, “Sometimes when people marriage of lattes and loans is. If these
hearts and minds of consumers which come in and I’m up front, I will say hi cafes truly do create a new experience
may impact how much actual commerce and…” (holding up his hand) paradigm that customers
happens over the piping hot cups of “They’ll say ‘I’m all set’. love, they will have earned
Peet’s. They think I’m trying to sell the right with consumers to
Incumbent brands should not give up them when I’m really just try many more innovative
and stick to the status quo. They need saying hi!” moves in the future. ■
to account for the brand perception Looking at the Capital One
they have cultivated when developing café through a filter of trust Michael S. Kirkpatrick is Senior
innovation strategies. This perception and transparency, customers Vice President, Client Experience
of “steady sameness” and lack of might interpret cafés as & Strategy and leads the
innovation and change is a real barrier a dishonest misdirect. It Financial Services Practices at
Mad*Pow, an Experience Design
to success. If you’re going to earn the could appear like a tactic of
agency in Portsmouth, NH and
right to be different, that will plying customers with coffee
Boston, MA.
take time and investment
and you need to give
consumers what branding
experts call a “reason to
believe” – that is, why
is now different? What’s
changed?
In other words, why is Capital One
uniquely positioned to do these cafes
and why are they a strong idea for
banking? I don’t see this incorporated
into Capital One’s strategy and that
may hamstring adoption of this
Issue One | 11PEOPLE ON
NEW
THE MOVE
LOCAL PROFESSIONALS MAKING THEIR
YORK MARK IN NEW YORK BANKING
M&T Bank Names Blair Ridder in the community and was recently capital and acquisition financing.
Regional President for NYC named to the board of the Greater Cunningham worked previously
M&T Bank has named Blair New York City Council of the Boy in senior positions for National
Ridder regional president for Scouts of America. City Bank and CoreStates Bank
He currently resides in Hoboken, (now Wells Fargo). Cunningham is
the New York City market N.J.
with responsibility for M&T’s a graduate of Pennsylvania State
community-focused approach to University.
banking delivered by 375 employees Cunningham Selected As
to customers and neighborhoods Customers Bank Market Genna Named President/CEO
across the metro area. President/EVP Of NYC Credit Union
Ridder was previously senior Customers Bank has named Lyle Lower East Side People’s Federal
group manager for middle market P. Cunningham executive vice Credit Union in New York City
banking in New York City, president, managing director and has appointed Maureen Genna as
overseeing a team of 10 bankers market president – New York Metro, president/CEO.
serving companies with annual Chicago and Washington, D.C. She succeeded Linda Levy. Under
revenues of more than $25 million. and specialty finance. He will also her 13 years of executive leadership,
He succeeds Peter D’ Arcy, become a member of the bank’s Levy grew LES People’s FCU assets
who remains in New York City Office of the Chair. Cunningham from $18.5 million to $55.3 million.
after previously being promoted most recently served as Managing Levy also expanded membership
to an area executive role broadly Director of Specialty Lending, a role from 5,667 to 8,036 and increased
responsible for bank operations in which he will continue. the credit union’s number of full-
throughout New York City, Long As a member of the Office of time employees from 18 to 25.
Island, Philadelphia, Southern New the Chair, Cunningham will work Before joining LES People’s FCU
Jersey and Delaware. directly with Jay Sidhu, chairman earlier this month, Genna served as
Ridder began his career with and CEO; Richard Ehst, president chief operating officer for the $309
M&T’s Executive Associate and chief operating officer; and
program in 2008 and has held a other bank leaders to drive the million Ocean Financial Federal
number of positions within middle planning and implementation of Credit Union in Oceanside, N.Y. She
market, healthcare and not-for- Customers Bank’s long- and short- also held managerial positions with
profit banking. He previously term strategies, while overseeing the $70.5 million 1199 SEIU Federal
served as a middle market group daily operations across the bank’s Credit Union in New York City and
manager in northern New Jersey. geographic footprint. the $14.4 million Long Island State
He also previously oversaw M&T’s Cunningham has more than Employees Federal Credit Union in
healthcare banking efforts in 30 years of banking and finance Hauppauge, N.Y.
downstate New York, Connecticut experience. He joined Customers
and New Jersey. Bank in March 2014 after
Ridder received a bachelor of spending more than five years Klefsky Named Senior VP At
science in economics from Colgate as the managing director of the Suffolk Federal
University and a master’s degree in CMS Mezzanine Fund, providing Suffolk Federal Credit Union
business administration from the mezzanine debt to finance private promoted Richard Klefsky to senior
Fuqua School of Business at Duke equity sponsored buyouts, non- vice president of retail banking
University. He is actively involved sponsored buyouts, growth located at the Medford branch.
12 | Banking New York | 2019In this position, Klefsky oversees Majka holds a Bachelor of Arts degree Austin Named Head Of New
all aspects of operations, member from the State University of New York Department
services, employee performance, at Buffalo. Cornerstone CFCU serves Allen E. Austin IV has been named
product research and strategic Niagara County with five locations in director of cash management and
development for retail banking. Lewiston, Lockport, Middleport and administrative officer at the Bank of
Klefsky additionally oversees all North Tonawanda. Greene County’s new corporate cash
facilities making certain that all credit management department. Donald
union branch locations are operational BankOnBuffalo Names Anderson Gibson, bank president and CEO,
and running efficiently. VP For Retail Banking said, “with the creation of our new …
Klefsky joined Suffolk Federal in BankOnBuffalo has named department, we will have a dedicated
2004 as regional director of branches Michael A. Anderson as vice team which will be 100 percent
and call center and prior to his current president, regional retail banking focused on the unique needs of our
position, served as vice president of administrator. Anderson will lead largest customers.”
risk management and vice president a retail operation consisting of four Austin joined the bank in 2014
of retail banking. Previously, Klefsky branches currently, and provide as part of the bank’s management
was certified as a Compliance & guidance on operating efficiencies training program. After completing
Security Expert by the Credit Union and goals. He will also provide the program, he was placed in the
National Association. Klefsky earned strategic counsel on future retail municipal banking department,
his Bachelor’s degree in Economics expansion and services in concert where he held several positions of
with a minor in finance from SUNY with Martin T. Griffith, BankOnBuffalo increased responsibility. Austin is a
Oneonta. president. graduate of Babson College in Boston,
He is a graduate of the State Massachusetts, with a Bachelor’s
Saratoga National Bank Names University at Buffalo with a Bachelor degree in Business Management. He
New Regional Manager of Science degree in political science earned his Master’s degree and an
Karen Mason has been named and an MBA. He is the current Executive Certificate in Leadership
regional manager of Saratoga National president of UB’s Alumni Association from the Graduate School of Banking
and is former board chair of the at the University of Wisconsin-
Bank and Trust Company In her
Hamburg Chamber of Commerce
new role, Mason will oversee branch Madison in 2017.
and former class chair for Leadership
operations and sales at all 10 Saratoga Buffalo.
National Bank offices, with an 11th
opening soon in Rotterdam.
She joined Saratoga National in
2015 and has more than 30 years of
banking experience. She was most
recently vice president, Troy branch
manager.
Mason is a Rensselaer County
Chamber Ambassador and was
named Ambassador of the Year in
2017. She is also a member of the
Troy YMCA Advisory Committee and
chairs its Annual Troy Campaign. She
is attending the Rensselaer County
experience
Leadership Program and will graduate
in April.
Originally from Troy, she lives in
Averill Park with her family.
Cornerstone Community Federal
CU Hires Majka From its partnership with the Wharton School, to its
Cornerstone Community Federal prestigious faculty and top-tier student body, the Stonier
Credit Union in Lockport, N.Y., has
hired Jillian Majka as its new chief experience is the gateway to greatness for our industry’s
human resources officer. Majka comes future leaders. Are you one of them? Take the next step.
to the credit union with many years
of experience in human resources ABA Stonier Graduate School of Banking – June 6-13, 2019
including positions with North
American Breweries, Evans Bank and
Synacor.
Her concentration has been in talent
management, project management ABAStonier.com
and organizational development.
Issue One | 13STATISTICS | By Bruce Paul, Special to Banking New York
Women And Banking:
The Force Is With Them
WHY XX SHOULD MARK THE SPOT OF
YOUR BANKING OUTREACH
HOW MANY BANKS
ARE THINKING OF GENDER
WHEN THEY ROLL OUT NEW
FINANCIAL SERVICES?
14 | Banking New York | 2019T
he latest Banking Benchmarks for it is growing. Women are more likely than
New York are out, and we have men to say that they will increase their use of
conducted an exclusive analysis electronic banking this year. Given this gender
for Banking New York into the discrepancy, how many banks are thinking
gender differences in banking of gender when they roll out new managed
across the region. We analyzed 546,695 services? Our Benchmarks cover 1854 banks
reviews from both women and men to tease across the Northeast US but I only know of 3
out the differences. Some of the results may institutions that have ever considered gender
surprise you. differences in their approach to technology
roll out.
THE TECHNOLOGY DIVIDE
In a reversal of roles in years past, women DOES THE PERSONAL TOUCH MATTER?
are now more likely than men to use the Some Community Bank CEOs I have talked
online and mobile tools their bank offers to with have wondered if women are using
do their banking. Almost 70 percent said they branches less because they don’t have a good
prefer the electronic tools (mobile and online) experience in the branch—kind of like the
over personal contact (in-branch and phone). stereotypical car repair shop where women
By comparison, just under 65% of men might feel less respected. We analyzed the
prefer electronic banking. The number one data to see if this is the case, and actually
reason women cited for preferring banking the opposite is true. Women are 20% less
70%
OF WOMEN PREFER THE
ELECTRONIC TOOLS (MOBILE AND
ONLINE) OVER PERSONAL CONTACT
(IN-BRANCH AND PHONE).
electronically was because they are too busy likely to get treated with disrespect than
to go into a branch or call on the phone, and men, according to the men and women’s own
they prefer the speed and ease of online and experiences. Stop the presses and contact
mobile tools. Not exactly breaking news. your State lobbying organization! Banking is
But what might baffle some is that women are an industry where women get treated better
also significantly more capable than their male than their male counterparts!
counterparts at using the technology: 17% Women also report 27% lower levels of
more capable according to the respondents pushy staff, while getting the same level of
themselves (and that is with the built-in proactivity from their bank as the men do.
overclaim we see with men). This capability They seem to get the best of both worlds. This
gap is different by age group: Millennials have is especially true Upstate as women in North
about the same technological competence Country and the Capital Region markets get
regardless of gender. Gen X women are slightly significantly better service than men. (Long
more capable than Gen X men. But the big Island has the lowest gender discrepancy, by
difference is among Baby Boomers where men the way).
are significantly worse at figuring out the tools
compared to their female counterparts. ARE WOMEN BETTER CUSTOMERS?
Not only is the technology gap significant, Women might be happier than men with the
Issue One | 15electronic banking tools and with the service they get do a better job for their female customers than others.
from their banks, but do banks get rewarded for that In some of the larger metropolitan areas, like NYC,
performance? The Benchmarks show a clear answer: Buffalo, Albany there is a big difference between
yes. the banks that women will consider vs the ones men
Overall, women are 5% more likely to consolidate will consider. This difference narrows in many of the
their business with one institution. And they are also more rural areas.
6% more likely to remain with a bank long term than The following table shows the top-rated banks in
men. This is exactly what all banks want: greater New York as rated by women, in each of the main
cross sell to current customers and lower attrition of areas of the State. In about half of the cases, these
those customers over time. As a matter of fact, you banks are also top performers for male customers,
can take that to the bank: the average lifetime value but in the other half they are not.
of a female customer is actually $275 higher If you would like to see the ratings and/
than a male customer. So, meeting their or rankings for a specific bank, whether by
needs is clearly a good investment. women only, or for all customers, just email
info@cescx.com. ■
ARE WOMEN ATTRACTED TO DIFFERENT
BANKS THAN MEN? _____________________________________
The answer to this is mixed and really Bruce Paul is president and CEO of Customer
depends upon the market. But not all banks Experience Solutions, which produces the
are created equal. Some banks in New York semiannual New York Banking Benchmarks.
THE TOP BANKS ACCORDING TO WOMEN IN NEW YORK STATE:
Western NY Central NY Capital Region Mohawk Valley- Hudson Valley NYC Long Island
(Allegany, (Broome, Cayuga, (Albany, Columbia, North County (Dutchess, Orange, (Bronx, Kings, (Nassau, Suffolk
Cattaraugus, Chemung, Greene, Rensselaer, (Clinton, Essex, Putnam, Rockland, New York, Queens, counties)
Chautauqua, Erie, Chenango, Cortland, Saratoga, Franklin, Fulton, Sullivan, Ulster, Richmond counties)
Niagara counties) Delaware, Genesee, Schenectady, Hamilton, Herkimer, Westchester
Livingston, Madison, Warren, Washington Jefferson, Lewis, counties)
Monroe, Onondaga, counties) Montgomery, Oneida,
Ontario, Orleans, Otsego, Schoharie,
Oswego, Schuyler, St. Lawrence
Seneca, Steuben, counties)
Rank Tioga, Tompkins,
Among Wayne, Wyoming,
Women Yates counties)
1 Evans Bank Tompkins Bank Bank of Greene Watertown Chase Bank Chase Bank Chase Bank
of Castile County Savings Bank
2 Community Bank Canandaigua Kinderhook Bank Glens Falls Walden Savings TD Bank TD Bank
National Bank and National Bank Bank
Trust
3 Northwest Bank Generations Ballston Spa TD Bank Rondout Ridgewood First National Bank
Bank National Bank Savings Bank Savings Bank of Long Island
4 Cattaraugus Woodforest Saratoga National New York Ulster Savings Capital One People’s United
County Bank National Bank Bank Community Bank Bank Bank
5 Five Star Bank Lyons National Berkshire Bank Adirondack Bank Catskill Hudson Amalgamated Roslyn Savings
Bank Bank Bank Bank
Source: Customer Experience Solutions
16 | Banking New York | 2019WOMEN AND LEADERSHIP | By Karen Kirchner, Ellen Keithline Byrne, and Denise D’Agostino
Rising Through
The Ranks At Banks
HOW TO CLOSE THE LEADERSHIP GENDER GAP
T
here is undeniable evidence that a diverse WHAT’S GETTING IN THE WAY?
leadership team and workforce leads to There are myriad factors at play, both individual
better business results. The Credit Suisse and systemic. Women themselves can improve in areas
Gender 3000 report states, “where women such as quieting their inner critic, taking more risks,
account for the majority in top management, and unabashedly owning the true value they bring. Yet
businesses show superior sales growth, high cash flow they will still face significant external barriers, such as
returns on investments and lower leverage.” “However, unconscious bias, unfair promotion practices, and male-
despite this clear advantage, many companies, including dominated corporate cultures.
financial institutions, are making slow progress in For both individual women and banks, there are five
addressing the gender gap in leadership. steps that should be part of any effort to confront the
While women make up 44% of the S&P 500 labor gender gap problem.
force, only 26% of executive and senior level managers Start at the executive level. It makes a huge difference
are women and only 4.8% of CEOs. when those at the top move beyond lip service and
42%
actively promote initiatives that help women advance.
ONLY
OF COMPANIES HOLD SENIOR LEADERS
ACCOUNTABLE FOR MAKING PROGRESS
TOWARD GENDER PARITY.
Issue One | 17Only 42% of companies hold senior leaders accountable of adding women’s voices to the conversation as well as giving
for making progress toward gender parity. Yet it’s hard to men valuable feedback on unacceptable behavior.
imagine a groundswell of change when leaders aren’t formally An inclusive culture also encourages women to use the
expected to drive it. benefits designed to help them manage their lives outside
The Women in the Workforce 2018 report by McKinsey&Co., of work. One female leader at a major investment bank
sponsored by LeanIn.org, recommends setting annual targets explained that while her company has a flextime policy, it’s not
for promoting women and holding executives accountable for considered culturally appropriate to use it. Another described
achieving them. If results are being tracked, managers are the stress of balancing two kids, leading a team and keeping
more likely to scrutinize their decisions and question their up the façade that she has it all together. For women to rise
assumptions, leading to more women getting a seat at the through the ranks, they need acknowledgement and support
table. for the complications they face on the home and work fronts.
Women need senior level sponsors who see their potential,
introduce them to key contacts and recommend them for BUILD AWARENESS OF
opportunities. UNCONSCIOUS BIAS
Companies need to enable the key relationships that make a It’s critical to pay attention to whether women and men are
difference. Nine in ten women do not feel confident in asking evaluated differently. Are you categorizing strong, assertive
for sponsors; and eight out of ten lack the confidence to seek behavior in a woman as abrasive, while that same behavior is
mentors, according the 2015 KPMG Women’s Leadership viewed as leader-like in a man?
Study. And yet, we know that these relationships are key. Training in unconscious bias helps to build awareness
Kelly Watson, KPMG Partner and Board Member, explains of the thinking patterns that lead to discrimination. This
that “Relationships are the building blocks of anyone’s life awareness results in evaluations based more on merit and
or career, and making those connections has been the single less on comfort level. A senior manager may lean towards a
most critical thing for my career advancement.” candidate who has a similar background to his, but when he
Both women and their companies need to proactively learns to question his biases, he looks for more objective data
connect high-potential women with senior leaders who can to use in a hiring decision.
share lessons learned, help navigate politics and open doors. Research also suggests that mandating a diverse slate
Networking opportunities that encourage employees to of candidates helps companies make better hiring and
mingle, regardless of level, are also key. Our clients often promotion decisions. Thinking about candidates in groups
ask us, “How can I build a relationship with someone I never helped managers compare individuals by performance, while
see?” evaluating them individually led to gender-biased decisions.
FOSTER AN INCLUSIVE AND GIVE WOMEN THE FEEDBACK
RESPECTFUL CULTURE THEY NEED TO SUCCEED
This starts with making the expectation clear that managers Robyn Ely, faculty chair of the Harvard Business School
at banks and credit unions should demonstrate zero tolerance Gender Initiative, explains that women get qualitative feedback
for biased behavior and language when they observe it at any that is more positive than men, but it’s also more vague.
level of the organization. According to Ely’s research, men tend to get more specific,
But fostering an inclusive environment requires going a developmental feedback, which helps them correct behaviors
step further. In the Harvard Business Review article “Women, that are getting in their way. By handling women with kid
Find Your Voice” from 2014 authors Kathryn Heath, Jill Flynn gloves, managers are slowing their development, because they
and Mary Davis Holt found that women feel unsupported and don’t know what to work on to improve. Training managers
frustrated in many high-level meetings, often unable to get in the importance of giving specific, developmental feedback
a word in edgewise and are frequently interrupted. Having to both men and women is key.
leaders at the table who regularly solicit the views of those Helping women develop the behaviors and skills that
less vocal is important. position them for leadership success at your bank is critical.
Former Chairman and CEO of Pepsi, Indra Nooyi has Combining those development efforts with organizational
discussed how she would regularly call men out who initiatives provides the catalyst for real and lasting change,
interrupted women in meetings. This has the double benefit helping women to shatter that glass ceiling once and for all. ■
Moxie Leaders was founded by (from left to
right) Denise D’Agostino, Karen Kirchner and
Ellen Keithline Byrne, a team of organizational
leaders, executive coaches and a PhD, who
create programs specifically for women leaders
–– to help them rise up in today’s competitive
world and make their mark. For additional
information visit www.moxie-leaders.com.
18 | Banking New York | 2019Learn where your competition is
strong and where it is vulnerable.
Over 1 million independent, unbiased reviews by your own customers and your
competitors’ customers that can help you discover where you have a competitive
advantage, and where you are vulnerable.
To learn more about our subscriptions or to get your Customer Experience
Benchmark Report, visit cescx.com/benchmarks or email info@cescx.com.
Issue One | 19DID YOU SEE?
Banking New York publishes a weekly digital newsletter that rounds up the latest
news and information about, you guessed it, banking in New York. Here are a few
stories from recent editions of that newsletter. If you would like to subscribe to or
advertise in the Banking New York newsletter, contact us at info@ambizmedia.com.
PLEA IN $10M Presumably, Wong had so many accounts with the
EMBEZZLEMENT LEADS big banks because from 2014 to 2016 he received
$11,169,457 in W-2 compensation, which included
TO FEDS TARGETING
his base salary, bonus and incentive pay and other
CEO’S ASSETS reportable compensation, according to MCU’s 990
Kam Wong, former CEO of filings with the IRS.
New York's Municipal Credit
Union, pleaded guilty to Wong also received more than $114,000 in non-taxable
embezzling nearly $10 million benefits and more than $281,000 in retirement and
during his tenure for one of deferred compensation, the credit union’s 990 IRS filings
the largest credit unions in the show.
state.
Kam Wong CONSUMERS GLOOMY ABOUT ECONOMY,
Prosecutors filed forfeiture EMPLOYMENT
documents in U.S. District The Survey of Consumer Expectations from the Federal
Court in Manhattan that will allow the federal Reserve Bank of NY shows consumers are not optimistic
government to seize Wong’s assets to help pay the about the economy. They also have concerns that
$9,890,375 he is expected to be ordered to make in unemployment numbers will start to grow again.
restitution during his sentencing hearing in April.
Respondents also demonstrate a gloominess of sorts
Court documents show the former credit union CEO when it comes to their personal finances. They are less
has 24 accounts with JP Morgan Chase, Citibank, Bank optimistic about future credit availability, and fewer
of America, Wells Fargo Advisors, HSBC, and Sterling expect to be financially better off a year from now.
National Bank. Wong has two accounts at MCU and Also, the survey shows expectations for year-ahead
an Ascensus 401(k) account with the credit union. The credit availability deteriorated further in January.
amounts in each account were not disclosed in court The proportion of respondents expecting improved
documents.
20 | Banking New York | 2019conditions is now at its lowest level since October 2016. NY STATE DEPARTMENT OF FINANCIAL SERVICES
The survey of consumer expectations contains FILES FEDERAL CASE AGAINST OCC
information about how consumers expect overall The New York State Department of Financial Services
inflation and prices for food, gas, housing and education has filed a Manhattan federal case against the Office of
to behave. It also provides insight into Americans’ the Comptroller of the Currency (OCC) stating that the
views about job prospects and earnings growth and "reckless folly should be stopped” that would enable
their expectations about future spending and access to fintechs to lend money and pay checks nationally while
credit. The SCE also provides measures of uncertainty in not accepting deposits. A similar case has been filed in
expectations for the main outcomes of interest. Washington, DC as well.
Vulnerable consumers will get hurt by the end-run
BERKSHIRE BANK TO CLOSE THREE CAPITAL
around their supervision, state regulators contend.
REGION BANKS IN NY The OCC — the federal agency that oversees banking
Berkshire Bank recently announced plans to close three regulations — insists it’s got every right to set standards
Capital-area branches in Colonie, Wilton and Glenville, for an evolving market that originated 36% of all the
NY. personal loans in 2017, with a number going to people
Berkshire Bank spokeswoman Heidi Higgins said that who don’t often use traditional banks.
the bank "is committed to maintaining a strong presence Is this a turf war? A fight for customers’ best interest?
in New York" despite the three branch closures locally. Growing pains for a new banking world soaked in
She said that the branches are being shut in response consumer data? Observers say the closely-watched cases
to local customer trends. "As we grow, we continue to are a mix of all three.
look for opportunities to enhance our existing branch
network and promote efficiency, while still providing the CUOMO NAMES LINDA LACEWELL AS
convenience that your everyday banking needs deserve," NEW YORK'S DFS CHIEF
Higgins said. New York Gov. Andrew Cuomo has named ex-prosecutor
"The proximity of other branch locations was a factor to Linda Lacewell as chief of the state's Department of
close these [three] locations [and one in Utica] and the Financial Services. Lacewell is known to be a tough
changing consumer preferences and improvements in prosecutor who has gone after mobsters and business
financial technology have further spurred the reduction executives.
in branches,” she added. That record suggests to some legal experts that the DFS
may be entering an assertive phase as she takes office --
SIGNATURE BANK PARTNERS WITH BERMUDA
one that’s unlikely to stray far from Cuomo’s enforcement
FINTECH STARTUPS priorities. Such an approach would contrast with the
New York-based Signature Bank has agreed to provide a agency’s approach under Lacewell’s predecessor, Maria
complete range of banking services to Bermuda licensed Vullo, who actively pursued consumer protection cases
fintech companies. but also said she “never wanted to be a sheriff.”
Signature Bank is the first bank to launch a New York “Linda understands what good public policy is and
regulator-approved blockchain-based platform for intuitively knows that markets work best when there’s
managing money transfers between clients, months an even playing field with clear rules preventing fraud,
before J.P. Morgan announced its own similar JPM Coin abuse and unfairness,” said Benjamin Lawsky, the
initiative. agency’s first superintendent. Lawsky, too, was an ex-
"The government has been working diligently to prosecutor who was also drawn from Cuomo’s ranks, and
promote Bermuda as the destination of choice for fintech his tenure was characterized by vigorous enforcement
companies looking for a place to domicile. We produced and steep fines for international banks.
progressive legislation in 2018 and have established Lacewell, 55, is stepping into the job at a critical
Bermuda as a leader in the fintech industry," said moment, as the agency -- the brainchild of the governor,
Bermuda Premier David Burt. "Bermuda is respected as who merged bank and insurance regulators -- has
a well-regulated and legislated jurisdiction in the fintech evolved from the feisty start-up of Lawsky’s era to a full-
space and companies know that this is a safe place to fledged member of the regulatory establishment.
live and work.
She inherits a variety of investigations, including into
“As a result of our business development and promotional Goldman Sachs Group Inc.’s work for a Malaysian wealth
efforts, 66 fintech companies have been incorporated fund and oversight of Deutsche Bank AG, which is
in Bermuda. However, the absence of banking services under scrutiny from Congress over its relationship with
for fintech companies has been an impediment to those President Donald Trump. ■
companies who are looking to establish a physical
presence in Bermuda," the premier added.
Issue One | 21You can also read
