CHAIRMAN’S C O LU M N
Working Together Jim Cargill
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Chairman
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Arkansas Bankers Association
he Arkansas legislature enacted the SAFER AR Act on April 1. This piece of legis-
lation is designed to strengthen the protection of seniors from harmful and predatory practices related to financial fraud and exploitation. Considering that the number of cases involving scams or exploitation of senior citizens in Arkansas is estimated to have quadrupled during the past three years, this new legislative protection is much-needed. According to the CFPB, financial losses due to elder financial abuse range from $2.9 billion to a staggering $37 billion per year. One reason for the vast range of monetary damage is because many seniors are too ashamed to report instances of financial fraud. And, regardless of the actual amount of losses, elder financial abuse is an invasive offense that leaves a devastating and emotional impact on families across the state. While the specific piece of legislation was sponsored by Senator Jonathan Dismang of Searcy and Representative Carlton Wing of North Little Rock, much of the credit for this law goes to Lorrie Trogden and the ABA staff, as well as to the ABA’s Government Relations Committee under the excellent leadership of Jim Taylor with First Security Bank. There were many other Arkansas bankers who helped develop the specifics of this legislation – from risk management professionals to securities compliance officers – and many of you participated in outreach efforts by contacting your local senators and representatives. Seeing our staff, leadership and members rally together in support of sensible and needed legislation to protect vulnerable customers is exciting and encouraging. It
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SUMMER 2021
“According to the CFPB, financial losses due to elder financial abuse range from $2.9 billion to a staggering $37 billion per year.” reinforces a few very important issues related to the ABA’s purpose and mission. First of all, it demonstrates that when we work together as an industry, we can positively impact the lives of our customers and communities. All of us understand that banks and bankers have opportunities to positively impact our communities when we help small business owners get started, grow and succeed; when we help people buy a new home; when we help improve financial literacy to equip our customers; and when we work to support vital non-profits in our communities. Those examples demonstrate the impact we can have when we work together as an industry to solve real problems in our state. But, we are not the only ‘players’ in this business sector. In this new era, we find ourselves competing with an onslaught of non-bank and neo-bank competitors – not to mention credit unions – who have certain advantages compared to our highly-regulated industry. It is important that we work together for the greater good so people realize the transformative results that banks can deliver to their customers and communities. There are plenty of instances where we might feel as if we are fighting with one hand tied behind our backs, but you are unlikely to see these competitors working alongside our legislators and other government officials at the
local level to protect vulnerable consumers against threats about which they may not even be aware. We need to continue the very important work we are doing in these areas and, equally important, we need to make sure our customers and communities know what we are doing. Lastly, we need to continue to encourage our bank staffs to get involved in this association. If we are going to lead and thrive in the future, our future leaders must be educated, equipped and empowered regarding what it means to set aside our daily competition for customers and work with one another as bankers dedicated to serving everyone in our communities. The idea for this legislation stemmed from a handful of ABA staff and members. I don’t think we can even imagine the number of other great ideas that could result from increased participation in the ABA by more young bankers, more female bankers, more bankers of color and more bankers from different backgrounds. I am looking forward to the year ahead with great anticipation and expectation. If there is anything you’d like to share with me personally, please don’t hesitate to reach out. My email is jcargill@arvest.com. Together, we can help continue and build on the great tradition and reputation of the ABA as a valued community partner across Arkansas.
