On November 26, a significant banking roundtable took place at The Courtyard by Marriott in Canfield, featuring key leaders from three banks and four credit unions in the Mahoning Valley. The gathering was attended by Matthew Bellin, senior vice president of Middlefield Banking Co.; Josh Toot, Mahoning Valley market president of Premier Bank; Mark Wenick, senior executive vice president and chief wealth management officer at Farmers National Bank; Christine Blake, CEO of Cardinal Federal Credit Union; Sandi Carangi, CEO of Mercer County Community Federal Credit Union; John Demmler, CEO of 717 Credit Union; and Mike Kurish, CEO of Associated School Employees Credit Union.
The discussion opened with an exploration of fintech—financial technology—and its disruptive influence on traditional banking practices. Mark Wenick expressed the view that fintech is fundamentally driven by technological advancements that enhance payment systems and customer experiences. Referring to the reaction within the banking sector, he observed, "A lot of individuals look for opportunities to get a better rate on their deposits," noting that this shift has seen a significant number of customers turning to fintech solutions.
Josh Toot added that the entry of fintech into the financial services sector created initial fears among banks about losing market share in consumer segments such as mortgages and checking accounts. However, he pointed out that fintech has evolved into a collaborative partner, enhancing customer experience and operational efficiencies, particularly in mobile banking.
The implication of fintech on credit unions was similarly positive. Sandi Carangi highlighted that fintech has allowed credit unions to offer advanced technological solutions, aligning them more closely with member expectations. "It has almost pushed us to what members wanted," she noted, emphasising the unique personal relationships that credit unions maintain with members, which distinguish them from purely online competitors.
John Demmler remarked on the evolution fintech has brought to service delivery in financial institutions, claiming, "Fintechs have accelerated the transformation in service delivery." He emphasised how these technological innovations have raised customer service expectations and prompted banks to improve their digital offerings.
Concerns about the future of physical bank branches were raised among the participants, with many leaders predicting that while the significance of branches in facilitating transactions may diminish, their role as community hubs would continue to endure. Demmler pointed out, “Branches will serve our members well in the future” by acting as platforms for consultative interactions rather than mere transactional spaces.
In a notable development, the roundtable also discussed the recent acquisition of Premier Bank by WesBanco. Toot explained that this merger will significantly strengthen their market position while allowing them to navigate the complexities of regulatory compliance more effectively. He outlined the anticipated changes in branding and systems integration, indicating that "you'll see legal Day One in January," with full transition expected by mid-year.
Regulations were highlighted as a common concern among all institutions. The discussion revealed a consensus that while regulations aim to protect consumers, they often impose additional costs and challenges. Christine Blake referenced the Credit Card Act currently before Congress, expressing concern about its potential downstream effects on the fees banks and credit unions can charge.
As the roundtable concluded, participants emphasised the resilience of the banking industry in the Mahoning Valley, despite the challenges posed by evolving technologies and regulatory landscapes. They noted that the vital commitment of financial institutions to their communities remains steadfast, with an entrenched focus on financial education and local engagement.
As the industry navigates uncertainties such as inflation and potential regulatory changes, the executives collectively acknowledged the importance of adaptability and forward-looking strategies. The assurance that local financial institutions continue to prioritise community needs and manage operational efficiency remains crucial in the context of an evolving financial landscape.
Source: Noah Wire Services