RLR Management Consulting

Thoughts for Financial Institution CEO’s

Andy Montgomery CEO of HDCS, Inc. & former bank CEO
Mitch Razook – President/COO of RLR Management Consulting, Inc.

The COVID-19 virus is anything but predictable. We are in a situation none of us has faced before and there is no playbook for this.

There are resources we can call on that are applicable. Bankers are rolling out their business continuity programs as they manage branch traffic. Advanced liquidity and capital preservation plans developed in the great recession will help the banking industry survive to see a brighter day. A well-developed plan is a bank executive’s best ally.

Most importantly, in times like this people look to their bankers for leadership.  And customer facing bankers look to their executives to set a tone for that leadership. Having been a bank CEO through a couple of really tough life changing events, I know what a bank leader communicates at times like this is listened to and is critical.

As Financial Services CEO’s address these complex and significantly challenging issues associated with this crisis, we offer several thoughts regarding strategic and tactical initiatives for your consideration:

  • Dust off your Business Continuity and Pandemic Plans and ensure they are updated and tested
  • Define the impact on your distribution channels and develop a plan to address each of them. Some channels may include branch strategy, ATM & debit card strategy, remote deposit limits, mobile banking deposit limits and capabilities. Additionally, consider Credit Offerings and develop business plans, risk mitigation plans and an implementation plan around current and potentially new credit & product offerings
  • Dust off (or in certain instances) establish your Human Resources contingency and succession plan
  • Deploy customer and employee communications plans and establish regular protocols
  • Define your liquidity plan and establish a plan to increase deposits and capital ratios (this may be an on-going effort that takes priority during and post pandemic)

We will push past this. It will be an event like 9-11 or a period like the Great Recession that will forever change us, and habits will be different as a result. It is my hope that we can call on that spirit of national unity that helped us dust off and pick ourselves up after September 11th. Bank executives can be a critical voice in instilling the confidence in their staff and customer base to do exactly that.