CHAIRMAN’S CORNER by Lloyd C. Hillard, Jr. WesBanco / 2019-2020 KBA Chairman
The NEW YOU in the Post-Covid19 World 2020 will be a year we will always remember because of the significant and unexpected events that impacted us all. The coronavirus and the protests across the country in response to racial injustice has affected our banks, and their employees; our customers and our communities. Our response will be the key to our future viability and success. Significant events may change the way you do business, i.e. deliver service, but it should not “blur” or change your message! Your core values should provide a solid foundation to guide you forward. I think we can all agree that you want to provide a safe and secure work environment for your team members, provide a memorable and positive experience for your customers and strengthen the communities you serve, while maintaining financial strength. This will be a necessity in the post-COVID19 environments. We are entering the unchartered territory of uncertainty. Managing through this crisis requires understanding the challenges and perseverance to survive. Focus on the fundamentals that have proven effective for your bank. Some key questions that must be addressed are as follows: •
How will it be different for your employees? Will they be eager to return? Will they feel safe and secure?
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Do your employees feel positive about your bank’s diversity and inclusion culture?
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Will you continue the option to work from home for selected employees or departments? How will this impact your internal culture?
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What changes will you make in delivering in person and online service to your customers? Will they feel safe and secure in returning to your lobbies and/or conducting online transactions? How will you communicate to your employees, customers and the communities you serve? Regardless of the communication means, it must be clear, concise and consistent! Remember, speak with one voice. What will be the impact on your markets? How long will economic recovery take - three months, six months, one year or more?
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What will be the impact on the quality of your loan portfolio? Will borrowers be able to resume operations and make loan payments after deferment ends?
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Do you have sufficient capital to manage through the crisis?
Your Pandemic Task Force can be the leader in this transition process. They should develop a written plan to address reopening your lobbies, coordinate implementation and develop appropriate communications. This plan should be thoroughly reviewed and vetted by senior management, approved and endorsed by the CEO and presented to the Board of Directors for approval. (This may vary from bank to bank depending on size and complexity). The plan should include actions that will enable team members and customers to feel safe, comfortable and secure in delivering and conducting their banking transactions, whether in person or online. It should also identify areas for potential change and improvement. This process will prove to be invaluable in improving the strength, viability and profitability of your bank. Evaluating new, improved and more efficient customer service and product delivery options is essential for your bank to thrive in the future. The alternatives should address all segments of your customer base. Some will want to return to your lobbies, while others prefer to do everything online. You have to satisfy both! Community banks that embrace change, manage adversity and proactively respond to unexpected events in a structured manner will be the winners in the post-COVID19 world. The KBA, as always, will be ready to provide resources and assistance with this process. The staff is already working hard in preparing to help you as we transition to the post-COVID19 environment. Are you prepared?
Food for Thought Loving your neighbors is to be a family and is far beyond DNA connection. Blood may be thicker than water, but love, kindness, trust and ability to empathize with each other in the face of every adversity is what we should call ‘my family.’ Kenny Nola KENTUCKY BANKER | 7
