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At the Risk Management Association’s Annual Conference in Boston earlier this month, Brookline Bank’s President and CEO Darryl Fess said “risk is all around us,” and outlined ways that local banks are creating market opportunities in an operating climate often defined by the actions of “big banks.”
“Our industry as a whole is one that is under constant change and pressure,” Fess said in a statement. “Local banks can remain relevant by providing superior service, offering high tech products, acting ethically and earning the trust of our neighbors.”
Fess spoke to the strength of the regional and community banking sector and described the advantages of banking at the local level, in particular the priority local banks place on relationship management to understand the subtleties of risk among their clients. He noted that while competition is fierce at the local level, there are growth opportunities in taking market share from the big banks.
“Our regional, community and small banks need to look for growth by proving every day that we deliver a more personal and custom approach to banking,” said Fess.
Fess also addressed topics that are equally threatening to large and small banks such as fraud and cybersecurity, and how technology is disrupting traditional industries and their credit models. He recognized the important role of new fintech applications in helping smaller institutions roll out robust technology platforms associated with large banks to equalize the playing field.
On the regulatory front, Fess noted that banks are regularly characterized similarly, yet smaller banks are markedly different than big banks. As a result, smaller banks face greater challenges with regulatory constraints that are designed to address the activities of larger institutions.
“Local banking is an important part of America. Our bankers are connected at the hip with our communities,” concluded Fess. “We approach risk with caution and concern but take the time and local knowledge to ensure that our decisions are ones that are not made solely based on data. We know the details, texture and needs of our communities.”
