Independent Banker - May 2020 - 25

Next: Put your finger on biometrics compliance
through a shared vision, well-thought-out plan
and mutually aligned objectives, will move the
bank forward in today's technology-driven
world. Visionary leadership creates a culture
that stimulates and fosters innovation and
broader, more diverse income streams.
Q A culture of service. Community banks
that prioritize service and focus on the customer
experience position themselves well
for the future. That internal culture of service
generally fl ows outward into the community,
as seen by our members' heavy involvement
in local events and important business networks
like the local chamber of commerce or
fundraising initiatives.
Innovation Station
By Charles Potts, ICBA
Measuring high
performance
W
hat constitutes a high-performance,
innovative community bank? As an
industry, we rely on fi nancial metrics to defi ne
success, but numbers tell only part of the story. As
we consider the broader context, I'd like to pose
a question of my own: How should community
banks gauge progress as they move into the future?
Quantitative metrics such as return on assets
(ROA), return on investment (ROI), loan performance,
low default rates and others are critical in
assessing a bank's performance. But they aren't
enough. We must also consider the qualitative
nature of high-performing, innovative banks.
I've found four characteristics that help cultivate
a culture in which high performance and
innovation can fl ourish.
Q A visionary, fully engaged board and CEO,
Charles Potts
(charles.potts@
icba.org) is
ICBA senior vice
president and
chief innovation
off icer
Q Community investment. By nature, community
banks strive to address the fi nancial
needs of their community, off ering small business
loans to local businesses and personalized
loans to individuals. Also high on the priority
list are investments in relationship-building,
not only with local businesses and business
leaders, but with individuals, too.
Q Compliance. Community banks with a heavy
compliance focus operate their bank in a solid,
fi duciary manner. They understand how compliance
supports quality products, services and
relationships, and they have the ability to put
the pieces together to foster high performance
and innovation.
A defi ning characteristic that overarches all
these points is knowing when to say no. Community
banks that routinely perform and innovate
understand their strengths, what they're good at
and what to avoid. For example, a community
bank that specializes in small business lending
won't be dazzled by an out-of-market commercial
product.
ICBA's role from an innovation perspective is
to ensure community banks have access to the
same tools, services and capabilities available to
larger fi nancial service providers. To make that
happen, we need your input. Share with us your
challenges and business objectives, and we'll
work with you to fi nd suitable companies that fi t
your requirements. Together, we can make sure
we're crafting purposeful solutions and options
for your community bank that position you to
move forward in the decade ahead.
independentbanker.org Q 25
http://www.independentbanker.org
Independent Banker - May 2020

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