I’ve been thinking about bank operations a lot lately. The term “bank operations” is a widely encompassing phrase that, depending on each individual financial institution’s practice, could cover a small area, i.e. only bookkeeping, or an entire backroom or non-customer-facing function. Deposit operations could include not only bookkeeping but also the management of the entire core deposit function: online banking, mobile and remote deposit, debit cards, ITM/ATM, electronic or digital banking, treasury management or business banking. The lending operation’s function also varies depending on the individual bank’s needs.
Regardless of what part of the process fits in the lending operations bucket in your bank, the most important fact, as with the deposit side, is that we structure the process to best serve our customers. Several of our MIBA member banks have many employees wearing multiple hats, even deposit and loan operations simultaneously. Besides the two prominent areas of deposits and loans, many other areas fall under the backroom or operations umbrella: compliance, audit, risk, information technology, finance and security, including fraud and cybersecurity. There is no single best practice or process. What is best for each of us is what our bank, our communities and our customers need. Management of that process, regardless of the structure or procedures, is what is most important.
Bank management provides administration and oversight of bank operations to ensure financial stability, regulatory compliance, customer satisfaction and profitability. These are four very simple tasks, but sometimes they run opposite of each other. We are tasked with the daily management of credit, risk, compliance, operations, human resources, technology and the resulting financial performance. These key functions of bank management will vary from one person with many hats to whole departments, with the ultimate responsibility flowing up to the CEO and the board of directors.
Challenges in today’s banking environment include digital disruption, regulatory pressure, cybersecurity threats, changing customer expectations and interest rate volatility. However, strategies for effective bank management are adapting to be agile, investing in technology and people, creating a strong risk culture, enhancing customer experience, focusing on your people, and creating a culture that attracts and retains customers. Effective management is financial prudence, technological advancement, customer-centric practices and strong governance, which allow us to remain competitive in an ever-evolving landscape. I encourage each of you to think about your bank’s operations and ask if they are working for you.
On another note, when this issue of the Show-Me Banker hits your desk, we will be about a month away from the MIBA’s 48th Annual Convention at The Lodge of Four Seasons in Lake Ozark, Missouri. The convention will kick off on Monday, Sept. 8 with a 10:00 a.m. start to the golf tournament and will end at the MIBAR that night. Tuesday, Sept. 9 starts at 8:10 a.m. with a general session and our keynote speaker. Tuesday evening begins with the President’s Reception and silent auction at 4:30 p.m., followed by the always popular Lobster Fest, live auction and, of course, the MIBAR to conclude the night. Wednesday, Sept. 10 starts at 7:30 a.m. with the ICBA Partnership Presentation and concludes with our closing session.
As this will be my final message, the opportunity to serve as the association’s president over the past year has been an honor, and I thank the MIBA Board of Directors for the opportunity. To those who have served in the president’s role in the past, thank you for your service. I’m sure you will all agree a BIG THANK YOU also goes to Matt, Michelle, Rebecca and Jessica. They make the job so easy that all you really must do is show up and be present, which I failed to do at the D&O conference. Thanks, Mark — now we are even!
The membership numbers may not reflect my aspirations at the beginning of my term; however, membership remains stable with a few adds and drops. The creation of the MIBA Fraud Committee will serve the association well as we go forward, constantly fighting fraud at our financial institutions. The ability for peers to share what they see in real time in our markets will be invaluable.
The association’s survival depends on the transition to the next generation of leaders. I’m optimistic that attendance at the convention will be a more diverse group, or bluntly put, “younger.”
To Mark Laune, our immediate past president, thanks for your past and current service to the association. To Curt Brumley, our incoming president, I look forward to working with you this next year, and as I said, 99% of the job is to show up and be present, and the 1% is keeping Matt on track.
