ARIZONA ECONOMY
LEGAL & FINANCE
BANKING GROWTH LEVERAGING TECHNOLOGY Eleanor Millwood had a front-row seat through the financial crisis. Millwood, an Arizona-area executive for Bank of America, was working at Wachovia National Bank at the height of the crisis. By the end, Wachovia became Wells Fargo through merger, as the banking landscape shifted. Bank of America recruited her in 2014. “It was a very stressful time,” Millwood says. “But it was also a time I grew tremendously as a leader. I learned to keep my message to the associates very clear, but also support them in getting information to clients because, at the end of the day, our clients just wanted to know what was happening and how it would impact them.” Nationally, 530 banks have failed since 2007, including 18 in Arizona. But in recent years, recovery in the sector has gained momentum. A recent Federal Reserve stress test found that the 31 banks tested, including Bank of America, were stronger than at any time since 2008. And Forbes reported that 2014 proved the best period for the sector since the downturn, measured by loan growth. Bank of America mirrors that trend. While figures were not available for Arizona, on a national basis, Bank of America lent $270 billion to businesses last year, compared with $224 billion in 2012. The assets of Bank of America’s Merrill Edge grew 18 percent in 2014, while those of the Merrill Lynch and U.S. Trust components of Bank of America’s corporate portfolio combined rose 6 percent, according to a company representative. “We’re definitely seeing our business banking teams doing a lot more lending,” Millwood says, “especially as customers take advantage of interest rates to support their business growth.” Banks in general, and Bank of America in particular, she says, have become leaner and stronger through mergers and by shedding non-core businesses, and also by leveraging technology. Brick and mortar will never go away, she says. But more customers will be taking advantage of technology, mirroring the way the airline industry persuaded travelers to print boarding passes on their own. “Banking is moving in the direction of routine transactions being done through alternative channels: mobile, ATMs, online,” Millwood says. “And business owners are going to be using remote deposit options to process (deposits) at their place of business, instead of paying a runner to come to the bank.” In addition, banks will not simply provide credit to businesses, she says. They will play an increasingly advisory role, with CPAs and attorneys to give advice. Bank of America began placing more local experts inside branches, hiring an additional 35 business bankers in Arizona. “It’s going to be efficiency, relationship building and a fully integrated approach,” Millwood says. “That’s where I see banking growing." 10
ELEANOR MILLWOOD SENIOR VICE PRESIDENT, ARIZONA AREA EXECUTIVE, BANK OF AMERICA
WHO’S WHO IN BUSINESS // 2015
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5/26/15 5:43 PM