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Margaret Sullivan
Chief Financial Officer, Avidia Bank
Age: 49
Industry experience: 33 years
As Avidia Bank’s CFO, Margaret Sullivan has a key role to play in helping the bank stay innovative. Through its risk management practices, which Sullivan is responsible for, Avidia has emerged as one of the most forward-thinking community banks in Massachusetts, and one of the most fintech-friendly.
Sullivan’s time at Avidia predates the bank’s current form, having worked at its predecessor Hudson Savings Bank for 12 years when it merged with Westborough Bank in 2007 to create Avidia. Like more than 80 percent of Avidia’s employees, Sullivan volunteers in the community and is board chair for Big Brothers Big Sisters of Central Mass. and Metrowest, where she has mentored the same child for seven years.
Q: How did you get your start in the banking industry?
A: When I was 16, I worked for a local community bank, Hudson National. I knew at the time I wanted to be in accounting and figured of all the places that were local, a bank seemed to be a place where accounting would be useful. There was a position open for a general ledger clerk. So that’s where I got started. I did that part–time in high school and then kept the job at Hudson National in different capacities in college as well.
Q: What does your position as CFO involve?
A: I would say overall with my position, one key thing is always – in layman’s terms – looking at the bigger picture, looking strategically at the direction that the bank should be going in and making sure we’re doing it in a financially sound and stable manner. The one pretty cool differentiator for Avidia Bank is we look at risk management as an opportunity to differentiate ourselves. We don’t see risk management as a tool for us to shy away from risk. Rather, if we excel in risk management and have a strong base and some really talented resources, then we’ll have the ability to take on opportunities that might, for some, be a little riskier in nature. We’re open to taking on products or services that might not be traditional banking–type products and services and [we] embrace them a little bit better than maybe traditional institutions.
Q: What’s an example of that approach?
A: One thing that has been part of the industry for the last five years is the concept of disruptive banking and fintechs. A lot of banks don’t know what to do with fintechs that are now in the market. What we decided years ago was rather than try to compete with them or try to fight with them for the business, what if we were to partner with them. What is it that we can offer that they need, and likewise they can offer that we need?
Over the past few years, we have established some partnerships with the various fintechs to improve our payment processing platforms, for example. It’s allowed us to offer real-time merchant settlement because we partnered with a fintech that provided the ability – prior to our core processor – to be able to offer instant merchant settlement. And by having that strong risk foundation, we can make sure that we’re approaching this new service to our customers in a fashion that is compliant, and we’re fulfilling our fiduciary responsibilities.
We’re also partnering with a fintech called PayFi. We’re, in essence, building the systems that will allow us to become a member of the Clearing House and offer real-time payments for all customers. With everything comes good and bad, but for the most part the good has definitely outweighed the bad in this instance.
Avidia Bank is able to partner with a wider range of fintechs to offer products and services thanks to diligent risk management practices.
Q: What are some challenges you face as CFO?
A: The challenges, I’d say, are probably similar to every other institution. Our margin has been squeezed over the last couple of years. The analysts and the economists are saying that there will be no rate changes this year – as best as they can predict – so we know that our margin will continue to be squeezed. And with the economy doing so well, you could say that the customer – whether it’s the consumer or a business – has a bit of an upper hand.
So, competition with other institutions is fierce right now, as we are all striving to get wallet share from the same business or individual. It’s a sign of the times. It just makes it a little more competitive, a little more challenging for us to continue to grow loans, grow deposits. Not in Avidia’s case, but if an institution were not to embrace change or embrace fintech or think outside the box about nontraditional, community bank-type business, it’s that much more difficult to continue to support growth.
Q: How have opportunities changed for women in executive roles at banks?
A: Over the years I have definitely seen more women in higher positions. I can think back to as recently as 10 years ago attending various conferences, various workshops, and looking around and being outnumbered by the male gender in the room. It could have been 90 percent men and 10 percent women. Now that percentage of women is much higher.
I just had to make sure that no matter what, I did the best job I could. I would try to prove that I had the abilities and the skill set that was needed. And I always had to make sure I was heard, I was seen, that my voice was not forgotten or drowned out. Unfortunately, I think over the years there have been times when women have had to prove themselves or work just a little bit harder in order to stand out.
Sullivan’s Five Favorite Quotes:
- “The people that mind don’t matter, and the people that matter don’t mind.” — Dr. Seuss
- “Every day may not be good, but there is good in every day.” — Alice Morse Earle
- “Why fit in when you were born to stand out?” — Dr. Seuss
- “If you want to win, you’ve got to sport a winning attitude.” — Winnie the Pooh
- “If you can dream it, you can do it.” — Walt Disney
