It’s been just over a decade since the last economic downturn, and we’ve found ourselves right in the middle of another period of financial turmoil. The Great Recession began in 2008 and was the longest period of financial decline since World War 2. We learned a lot during this time period, and it provided us with the vision to make better choices for our business and our customers moving forward. Here are some of our most valuable lessons.
After the recession we decided to change our core operating software from a legacy system to a new, more flexible system. For the record, there are four main banking systems that have 96% of the market share. For decades, banks of all sizes have been hesitant to stray from these big partnerships and so these big companies have gotten bigger and bigger without getting better and better.
Our relationship with Nymbus, our core software provider, has always been good, but it played out in a big way during this current crisis. Their team has gone above and beyond to help us assist our clients, their customer service is impeccable, and because they’re a young, digital company they have critical flexibility when we’ve ended it most. I can tell that this company cares about us, and that has made all the difference.
In addition to switching our core software, we’ve also invested in new business opportunities since The Great Recession that most big banks wouldn’t touch with a ten-foot pole. We’ve expanded our banking business to include Money Services (MSB) which is widely known as check cashing, and we’ve dipped our toes in the cryptocurrency world through our relationship with a Neobank.
Admittedly, these haven’t always been popular with colleagues at other banks. New ideas often take time for people to get used to. When we think of the MSB arm of our organization we see a whole new segment of our community we’re able to reach. Those people who need access to their money but for one reason or another don’t have a bank account. And, our relatively new relationship with neobanking has grown out of our commitment to remaining relevant as the world goes digital.
These segments of our business have continued to produce as the more traditional parts have slowed. This continuous flow of resources has allowed us to pump millions of dollars back into our community through PPP loans to local businesses. It’s more important now than ever for us to consider how the seeds we’re sowing in our businesses today are shaping our future. Our “big risks” of years past have turned out to be our strengths.
I tell people all the time how important our organization is to our community, and our ability to respond in the wake of the Coronavirus crisis is proof of that. When people shop around for mortgages they may find a half of a percentage lower rate at a larger bank, but I can assure you those banks aren’t going to be knocking down your doors when times get tough? In 2008 I learned that we community banks have the opportunity to become champions for our community if we choose the right partners and are bold enough to take risks.
