9 Questions With Mass. Bankers Association VP Peter Blanchard

Occasionally, I will use this blog as a forum for interviewing prominent members of the banking and finance community as a means of getting new and fresh perspectives on the monetary issues facing all of us.

There is no denying that the banking industry is experiencing a shift. I recently had a discussion with Peter Blanchard of the Massachusetts Bankers Association to get his take on the current industry changes. Peter is the Vice-President of member services and works to meet the needs of all members and associate members. In his role, he hears what challenges banks are facing and the steps being made to overcome these challenges.

Q: In your own words, what is Massachusetts Bankers Association’s mission?

Peter: The Massachusetts Bankers Association (MBA) represents and promotes the interests of its member institutions and those of the Massachusetts banking industry overall, while offering a wide range of services that meet their needs. The MBA carries out its mandate through legislative and regulatory initiatives, education, research, media and public relations, and assists our members in competing effectively in a rapidly evolving financial services industry.

Q: Describe your involvement with the Massachusetts Bankers Association.

Peter: I serve as vice president of member services. In that capacity I am responsible for direct member contact with the MBA’s 205 members and 225 associate members. I specialize in the areas of bank security, technology, e-commerce, and retail banking, reviewing many products throughout the year.

Q: What are some of the major benefits of being a member bank?

Peter: Like most business trade associations, the MBA focuses on legislative and regulatory activities on behalf of members. In addition to education, media and public relations, research, and important maintenance services are provided such as insurance for member banks. Additionally, members depend on the MBA’s endorsements, advice on product trends and recommendations on where to find solutions for their business needs. And while some of these requests are for general business issues, many focus on solutions unique to banking.

Q: Describe a typical member bank in terms of size, location, numbers of branches, etc.

Peter: We have a diverse membership that extends from the largest in the country to the smallest in Massachusetts, but a typical member, if typical is the right word, would be a bank with between $150 million under management with a few branches to a billion in assets with fifteen to twenty branches. Our membership includes all bank charters.

Q: With large money center banks opening more branches across the country and making online banking that much easier for people, what are some of the major issues community banks face?

Peter: This is an interesting conundrum; building more branches to attract more customers while at the same time trying to drive customers to online services to cut expenses. The reality is that banks large and small can compete as long as they employ multiple channels in delivering services. Customers of all banks want service options. While they may want to go into a branch to open an account, they may want to begin the process of shopping online for the best rates.

Q: To what extent have online banks, such as ING Direct, changed traditional banking practices?

Peter: Online banking has changed the banking paradigm. The competition is more amorphous today - It’s there, but not necessarily across the street with a sign on the building. Community banks are learning to compete by offering the same services using a variety of technology products available them. That said, there is no question that when customers don’t come through the door on a daily basis, it is more difficult to sell more products. But local banks, perhaps we should call them hybrid banks today, do have store fronts, so to speak, and can offer something not available from online banks, namely, a trained person in the branch who can help them with problems, assess their financial needs and offer them solutions. Regardless of whether you’re a small community bank or a multi-billion dollar bank, many customer segments want that personalized touch.

Q: What are some viable solutions for member banks to address the competition in terms of money center banks and online banks?

Peter: Some solutions are not high tech. Simple sales training is an important part of any retail business - You have to know how to make the sale. This seemingly basic function is very important to retail banking today. But, there is a vast market of global consumers out there who will not come through the doors of a typical bank, thus not giving the banker a chance to make the sale. To effectively compete, community banks need to employ a range of technologically competitive solutions that will identify their global market, which typically is a marketplace defined by their branch network, county, state or regional geographic boundaries. They depend on their reputation, community visibility, and print or broadcast media to attract customers. But to function effectively, banks need to attract deposits at competitive rates and technological solutions, such as MoneyAisle, that can help banks gather deposits attract their attention.

Q: What are some of the main reasons why the Massachusetts Bankers Association chose to work with neoSaej?

Peter: Clearly, the neoSaej solution caught our attention as something fresh, simple and aimed at a basic function of the bank, namely deposit gathering in a cost effective manner. It is a cutting edge product with a highly respected development team that understands banking and the banking environment. The fact that there is a banker advisory panel, a board with known success in the start-up and global corporate market, solid funding, and a growth plan all contributed to our interest.

Q: What do you believe some of the key benefits will be to banks that choose to utilize neoSaej’s unique offering?

Peter: The neoSaej product is very simple to use from both the banks’ and customers’ perspective. It offers the bank flexibility in deposit gathering, the ability to control deposit gathering campaigns, manage risk with a wealth of reporting options and the ability to attract deposits in markets previously unavailable to the bank. This product also gives the bank 24/7 operating capability without the related staffing and expense.

I would like to extend my thanks to Mr. Blanchard for taking the time for this interview.