By Rose Oswald Poels
I am pleased to share that WBA’s new employee resource group (ERG) for bankers from underrepresented backgrounds in the industry is off to a successful start. About 25 bankers participated in the initial meeting in mid-June, and bankers continue to sign up to join the group. This is a wonderful opportunity for bank leaders to share with employees within their organization as a way to connect with other bankers from around the state. The next monthly meeting will take place virtually on Wednesday, July 27 from 1:00–2:00 p.m.
A few days after the first meeting of the ERG, WBA hosted a webinar led by Alonzo Kelly on the topic of creating a culture where everyone feels they belong. It is very clear that expectations of today’s workplace go far beyond just job duties, and team members do not simply check their personal lives and unique identities at the door when they arrive at work. It is important for staff not only to feel supported by their colleagues, but also to find others whose experiences resonate with their own.
The conversation took off right away at the first meeting of the ERG. It was evident that bankers were eager to find a forum like this to have a safe space to share their concerns and ideas, as well as to receive advice and actionable tools that they can bring back to their organization. We know that many small community banks would not be able to offer this type of employee benefit on their own — and that employees from larger banks also appreciate being able to connect with bankers outside their organization — so this is an area where WBA can play a helpful role.
The WBA Board of Directors formalized a Diversity, Equity, and Inclusion (DEI) plan about two years ago, and this new employee resource group is one of the many ways the plan is being carried out. This group is designed to be an inclusive space for members of the Black, Indigenous, and People of Color (BIPOC); LGBTQ+, persons with disabilities, religious minority communities, and veterans as well as anyone who has an identity that is underrepresented in the banking community. If you have not yet done so (or if you would like to send a reminder of the opportunity), I would highly encourage bank leaders and HR professionals to extend this invitation to the staff in your organization who could benefit from it. Bankers can sign up here for the ERG, and they will receive a calendar invite to the upcoming meeting on July 27.
If you would like to learn more about the DEI resources offered by WBA — including the WBA Connect DEI peer group, the bank DEI sample policy, and more — please visit the DEI page on our website and reach out to any of the contacts listed on that page if you have questions. Thank you for your continued participation in making Wisconsin’s banking industry a welcoming space for everyone who is employed at and does business with our institutions!
The June BankWork$ class has now graduated! The Wisconsin Bankers Association is proud to partner with Employ Milwaukee to bring this nationwide program to Wisconsin. BankWork$ is a free, eight-week training program to prepare participants in primarily underserved neighborhoods for retail banking careers.
This graduating class of five included Yesenia Delgado, Nayeli Rocha, Dawanda Street, Evan Taylor, and Darnesha Wilson. WBA’s Daryll Lund attended the ceremony and congratulated the graduates on their achievement.
Over the eight weeks, these students learned the hard and soft skills necessary for entry-level retail and operations positions. The program began in 2019 and has so far provided more than 4,000 graduates in the Milwaukee area the opportunity to begin a career in banking.
Thank you to the following banks for sponsoring this program:
- Associated Bank, Green Bay
- Bank Five Nine, Oconomowoc
- First Federal Bank of Wisconsin, Waukesha
- First Midwest Bank, Milwaukee
- Johnson Financial Group
- PyraMax Bank, Greenfield
- Spring Bank, Brookfield
- The Equitable Bank, Wauwatosa
- Waterstone Bank, Milwaukee
- Wells Fargo
June 1, 2021–May 31, 2022
This year, attorneys Heather MacKinnon, Scott Birrenkott, and President/CEO Rose Oswald Poels submitted 16 comment letters in response to requests for comment on rulemaking affecting the banking industry.
Through this process, the WBA Legal Team was able to advocate on behalf of all WBA members for the betterment of the banking industry. From digital assets to examinations and fees, comment letters are a great opportunity for members of the banking industry to inform agencies about the impact of rulemaking and provide examples.
As part of the rulemaking process within the Administrative Procedure Act (APA), all agencies are required to allow the public an opportunity to comment on proposed rules for a prescribed period (minimally 30 days). All WBA members are encouraged to share their comments with federal and state agencies as requested. Information regarding comment letters, or WBA-created letter templates — when available — are typically shared with the membership in the Wisconsin Banker Daily. Additional rulemaking developments at the federal level are compiled in the monthly WBA Compliance Journal.
Once the public has commented, each agency must determine how to proceed given the feedback received. This year, the WBA Legal Team addressed five federal agencies and further helped inform said agencies on the impact of their proposed rulemaking.
Six Comment Letters Filed with the FDIC
Over the past year, WBA filed six comment letters with Federal Deposit Insurance Corporation (FDIC). Two of WBA’s letters commented on FDIC’s actions regarding examinations. In the first, WBA commented on the FDIC’s proposed hybrid approach to bank examinations and in the second, WBA commented on the post-examination surveys related to FDIC Safety and Soundness and Consumer Compliance examinations. In each letter, WBA emphasized the importance of the FDIC establishing consistent coordination and communication with banks.
Three Comment Letters Filed with the CFPB
WBA wrote three letters this year to the Consumer Financial Protection Bureau (CFPB). Most recently, WBA responded to CFPB’s concerns regarding products which feature “junk fees,” assuring CFPB that the Wisconsin financial services marketplace is competitive, featuring a diverse range of high-quality, convenient, innovative, and competitively priced products and services. Additionally, WBA highlighted that, despite CFPB’s concerns, the market is highly regulated, and that further rulemaking is unnecessary as fees are already subject to disclosure requirements.
Four Comment Letters Filed with the FRB
This year, WBA also filed four comment letters with Board of Governors of the Federal Reserve System (FRB). In one of the letters, WBA addressed FRB’s request for comment regarding the evaluation of account and services requests. WBA acknowledged FRB’s attempt to create consistency, but ultimately expressed concern with allowing access to the payment system by entities with little or no regulatory oversight, lack of protection, and minimal capital and liquidity requirements, among others. WBA proposed that FRB establish standards or requirements for users, maintain ongoing review of those involved, as well as coordinate an FRB-led evaluation committee.
One Comment Letter Filed with the HUD
In late May, WBA expressed support of the Department of Housing and Urban Development’s (HUD) proposal to extend a term for loan modifications. The modification would allow mortgagees to modify Federal Housing Administration (FHA) insured mortgage loans by recasting the total unpaid amount due for a new term limit of 480 months — an increase from a term limit of 360 months; allow FHA-loan borrowers similar flexibility and benefits as is available for Fannie-/Freddie-loan borrowers; and creates yet another tool for Wisconsin’s financial institutions to use in their continued work to help find solutions for struggling borrowers to retain their homes.
One Comment Letter Filed with the OCC
In a letter filed with the Office of the Comptroller of the Currency (OCC), WBA was able to comment on a final rule to adopt a new Community Reinvestment Act (CRA) framework. This regulation facilitated the issuance of joint CRA to an interagency basis which would allow for greater coordination on all CRA ruling between the OCC, FRB, and FDIC for the benefit of banks serving low- and moderate-income communities.
One Interagency Comment Letter Filed
Some rulemakings are issued on an interagency basis. This year, WBA commented on the FRB, FDIC, and OCC’s proposed interagency guidance on third-party relationships related to risk management. In the letter, WBA commented that this effort would promote consistency in their guidance as well as clearly articulate risk-based principles. In addition, WBA identified several ways Wisconsin banks will be impacted by the new guidance during final implementation.
Conclusion
Industry comment is a critical aspect to the rulemaking process. It is an opportunity for the industry’s voice to be heard, and it is important that the agencies hear from banks about how rulemaking affects you. WBA welcomes feedback on comment letters because it is key that we, and the agencies, hear directly from members.
For more information on the rulemaking process, comments, and upcoming rules, contact the WBA Legal Department at wbalegal@wisbank.com. For a full list of the comment letters filed during the 2021–22 fiscal year, visit www.wisbank.com/advocacy/comment-letter-library.
*This article has been updated from previous published editions
By Lorenzo Cruz
Financial exploitation of the elderly population is a growing and widespread problem domestically and globally. It is difficult to comprehend that an individual would deliberately prey upon senior citizens for significant monetary gain, but financial exploitation has become a pervasive problem frequently costing seniors billions of dollars worldwide. On June 15, World Elder Abuse Awareness Day, bankers are encouraged to join WBA in raising awareness to help prevent the financial exploitation of elders across the country.
What to Look For
Often, criminals devise deceptive schemes to disguise the criminal activity that seniors often fall victim to. Some of the common frauds affecting seniors include romance scams, government impostor scams, friend impostor scams, and online shopping scams. Fraud reports filed with the Federal Trade Commission (FTC) reported that seniors’ losses totaled $600 million in 2020. The costliest schemes were romance scams with reported losses of $139 million in 2020. However, the vast majority of elder financial exploitation goes unreported.
What is more disconcerting is that sometimes the criminal masterminds could be the durable power of attorney (POA) like a family member or close friend. A family member is the perpetrator in over 60% of these financial abuse cases, according to a University of Southern California study. The National Council on Aging (NCOA) estimates that approximately 10% of Americans above the age of 60 have succumbed to some form of elder abuse. Several of the warning signs to be on the watch out for related to financial abuse are sudden changes in seniors’ personal finances, uncharacteristic bank withdrawals, checks written out as loans or gifts, lost property, and unpaid bills.
Seniors can protect their finances by maintaining accurate financial records, never providing personal information over the phone, getting a second opinion on financial matters from an attorney or financial advisor, and selecting a trustworthy person to assist in managing personal finances. If family or friends suspect financial elder exploitation, talk to the victim about the possibility of fraud and report suspected abuse to adult protective services, law enforcement, and banks. While banks are restricted from sharing specific account information, they can review potential abuse and report suspicious criminal behavior.
Actions WBA is Taking
Last July, South Carolina Governor Henry McMaster signed a law to protect vulnerable adults from fraudulent financial transactions. The new law allows financial institutions and financial service companies to decline, delay, or report transactions that are suspected of elder financial abuse for vulnerable adults 55 years or older. At that time, South Carolina joined 31 other states that passed similar legislation.
In the Badger State, the Wisconsin Bankers Association (WBA) pursued a similar path to protect seniors from this insidious crime wave and reintroduced an elder financial exploitation bill in 2021. SB 19/AB 46 and SB 20/AB 45 co-authored by State Senator Pat Testin and State Representative John Macco provided financial institutions and securities companies with the tools to better protect their vulnerable adults and senior customers from fraud and abuse. The bills would allow financial institutions and securities companies to pause transactions suspected of financial elder fraud and would allow them to collaborate with the customer, a trustworthy list of individuals, and law enforcement to determine if the transactions should be approved. While the potential elder abuse transaction is on hold, the remaining funds in the account would still be available for other transactions. The bills also would permit reporting requirements, provide liability protections, and allow refusal of POA in suspected elder fraud cases.
As the elder fraud legislation moved through the legislative process, WBA’s advocacy efforts saw mixed success on the bills before the state legislature. WBA actively lobbied the issue and passed the elder fraud legislation in the assembly on a bipartisan vote with an overwhelming majority. Unfortunately, the bill stalled in the Senate Committee on Financial Institutions and Revenue. Despite falling short on passing an elder financial exploitation law in Wisconsin, WBA made tremendous progress on the issue. WBA’s government relations team remains committed to enacting legislation that would provide banks with the tools needed to protect seniors from costly fraud. Passage of the elder financial exploitation legislation remains a high priority for WBA during the next legislative session, which begins in January of 2023.
Uncovering the hidden talents in your team
By Lisa Dixon
We all have hidden talents. At least that’s what my mom used to tell me every time I failed to land a cartwheel — something I still believe every 11 year old, besides me, could do. But she meant well and although I never did learn how to do a cartwheel, I did have other talents that my friends didn’t. And in today’s world, where staffing is tougher than ever and every business is vying for the same pool of candidates, this might be a good time to step back and look for those hidden talents in your workforce.
A few years back, Westbury Bank wanted to put together a welcome video for new hires — something that was fun and would really showcase the team. As we were discussing the project, someone remembered that we had a part-time teller who was going to school for video production. After talking with the employee and sharing our vision of the video, he was excited to not only shoot it, but to write a script and edit the final product. It turned out great and started us on a path to discover what other talents our coworkers might be hiding.
When we were looking for a photographer to shoot some pictures for a billboard campaign, we first turned to our employees to see if anyone had photography skills. Sure enough, our part-time teller had been dabbling in photography for a few years and was thrilled at the opportunity. It was a win-win. We got great shots for our billboards, and he got some real-world samples to add to his growing portfolio.
It’s not just those “creative talents” that I’m talking about. We tend to think of employees’ skills based on the title they have. Teller, deposit operations, compliance, marketing, etc. But if you really get to know your employees, you may find skills that neither you nor they ever considered. Need help with social media? You likely have someone who is well versed and would love to assist with creating posts. Accounting is struggling to find entry level candidates? Look to your branch staff, where you may find someone who not only understands how the front end works but also has the aptitude and drive needed to apply those skills on the back end. Commercial credit needs help? We have filled a number of those spots with part-time college students who became full-time employees upon graduation.
I’m not necessarily suggesting you “rob Peter to pay Paul,” although in some cases that might be the case — there are certain positions that are easier to fill than others. But, instead, be creative. Stop limiting your perception of employees’ skills based on their current title. Talk to employees about what their drive and passions are, and maybe then you’ll uncover some hidden talents.
Dixon, senior vice president – retail banking at Westbury Bank in Waukesha, is a member of the 2021–2022 WBA Marketing Committee.
This column is published bi-monthly in Wisconsin Banker and is written by members of the WBA Marketing Committee.
The following is a brief interview between WBA President and CEO Rose Oswald Poels and Black River Country Bank, Black River Falls President and CEO Bob Becker.
Rose: How did you first get into the banking industry?
Bob: When I enrolled at the University of Wisconsin-Platteville, I had plans of becoming an engineer, but like many young adults, I changed my mind and ultimately decided to obtain a degree in business administration. During that time, I became especially interested in the economic classes I was taking, and that helped me start thinking about a career in banking. Fortunately for me, when I graduated, my local bank was looking for a loan officer, and I was lucky enough to be chosen for the job.
What is your favorite aspect of your role at your bank?
I have two favorite aspects of my role with our bank. The first is the ability to interact within our local community. Starting out as a loan officer, I was able to help people make some of the most important decisions in their lives happen. Helping people with buying a new car, buying a home, starting a business, or expanding the family farm — it is extremely enjoyable to help them reach their goals and dreams. As my career progressed and my leadership role in the bank expanded, it has been a joy to expand that interaction to larger community initiatives. I take great pride in what we have been able to do to help the Jackson County communities thrive and prosper. The second is leading a great group of fellow employees and helping them establish the foundation for a commitment to our bank and our community. These commitments help us establish a true family amongst our employees and customers. I was fortunate to have three great mentors when I started in banking, Winston Zeman, Glen Goeman, and Steve Zeman. Each was a great community banker, and I can only hope that I have been able to pass on some of what they willingly passed on to me.
What do you wish the general public understood about the banking industry?
I would like the general public to understand what a good, strong community bank can do for a local economy. It is a strong employer for the local economy. It reinvests in the local economy. It supports the local charitable organizations in the local economy. It lends leadership to many of the local organizations. It supports youth organizations and activities with sponsorships. It supports young adults with college scholarships. And it supplies the banking services that you need, in the convenient fashion that you would like, and at the lowest possible cost that is maintainable. In today’s world, we all have more and more options for our needs and services, but if we look at all the good that a local community bank does for its community, why would we ever consider the financial services choices we can make that don’t include a great personal relationship with your local community banker.
Where do you believe the industry’s greatest challenges are in the next three to five years?
I believe the industry’s greatest challenge in the next 3–5 years is continuing to safeguard the personal information and financial assets of our customers. The ever-expanding desire and need for instant and convenient access to our money and financial information is a huge challenge for the industry. We are committed to delivering as much of this to our customers as possible, but it comes with added challenges. It seems like the financial and cyber exploitation business is growing by leaps and bounds. Trying to stay in front of these organizations is a daunting task.
Every day, bankers serve their local communities by helping their customers achieve their financial dreams. Please describe your current role at your bank and share with us one of your more rewarding experiences.
I have been with the Black River Country Bank for 35 years, and I currently serve as president and chief executive officer, along with being the president of the bank’s holding company, BRAD, Inc.
My most rewarding experience is our Community Good Neighbor Day. This is a day that we as a group choose to participate in and help out our community members who need a helping hand. We have a local organization that we work with that allows us to identify local households that may need help with fall cleanup of their property. Our bank family breaks up into small groups and participates in a day of helping clean yards, some that were planned ahead of time and some that just happen on the spur of the moment. The joy of the day is not only seeing the good you do, but seeing how the employee family works together to accomplish as many things as possible and also the joy that is delivered to the recipients who can have one worry taken off their shoulders.
By Rose Oswald Poels
I’m pleased to announce that the Wisconsin Bankers Association (WBA) is partnering with state bankers associations nationwide and data provider FedFis to offer access to Bankers Helping Bankers to WBA members.
Bankers Helping Bankers is a bankers only platform for collaboration and research. Through data tools and dynamic user groups, Bankers Helping Bankers provides community bankers with a knowledge base focused on bank technology and emerging Fintech companies, as well as hot topics such as cryptocurrencies, banking as a service, and direct digital banking.
In October 2021, the Independent Bankers Association of Texas (IBAT) was the first state banking association to partner with FedFis, a provider of fintech data analytics and a strategy system which tracks financial, M&A, and vendor data (including technology vendors) on every bank and credit union in the United States. Since then, the exclusive, banker-only platform has been expanding to states across the nation.
Given the rapidly changing landscape of banking technology, it is hard to keep up through in-person events alone. Bankers Helping Bankers provides an additional way for bankers to connect with one another via forums and access a wide range of fintech data.
WBA continues to offer our WBA Connect and CEOnly/CFOnly peer groups that provide in-person and online networking for Wisconsin bankers only. Through the new collaboration with Bankers Helping Bankers, we aim to bring even more value to WBA members by offering an additional opportunity that lets bankers connect with their peers across the country, with a focus on banking technology.
If you or any member of your team would like to take advantage of the Bankers Helping Bankers opportunity, please fill out the form to gain access to the platform. You will receive an email within a couple of weeks with details on how to create your account.
By Hannah Flanders
Following one of the deadliest pandemics the world has seen, U.S. government officials, businesses, and individuals alike have naturally begun to reassess what safe health practices look like. In banks throughout Wisconsin, this is certainly no different. From plexiglass to constant reminders to sanitize, cover your mouth, and stay home when you are sick — these lessons aren’t a byproduct of the COVID-19 pandemic but rather knowledge that has subtly been around us this whole time without us really noticing.
From buffet sneeze guards to “employees must wash hands before returning to work” signs, safe health practices were evident in public spaces long before COVID. What the pandemic did bring about, however, was the general public’s awareness to safety and health practices.
At the onset of the pandemic, bankers across Wisconsin assembled plexiglass screens and masked up for the protection of themselves, their coworkers, and every customer. Unlike before, health protocols were broadcasted on the news, posted on doors, and mentioned at every meeting. This hyperawareness, while effective in helping stop the spread, has highlighted specific efforts needed to accommodate the safety of every member of the community.
“Often times, customer ‘protocols’ are framed negatively in the eye of the customer,” says Mike Parnon, architect at Brookfield-based BrandPoint Design. “It is important that banks are able to find a balance in improving overall customer experience by conveying their attentiveness to both financial and physical health.”
Mandates set in place during COVID at the state and federal level stressed the importance of complying with the Americans with Disabilities Act of 1990 (ADA). This civil rights law, and code for contractors, emphasizes the accessibility of public spaces. The pandemic highlighted for businesses throughout the state the need to further prioritize safe, accessible spaces for all.
Be it expanding mobile banking applications, so customers have access to their money wherever, or integrating more private spaces into bank designs — Wisconsin banks have taken full advantage of these COVID-19-related constraints to create opportunities for their customers.
“The health, safety, and well-being of our employees, customers, and community will always be a top priority for Bank First,” said Rachel Oakes, marketing communications manager at Bank First in Manitowoc. “While office cleanliness and sanitation were always a part of our procedures, COVID has redefined many things. We will continue enhanced sanitation procedures and offer hand sanitizer at our offices.”
During the peak of the pandemic in 2020, banks throughout the state established COVID committees tasked with monitoring, planning, and communicating critical information related to COVID-related guidance onto bank employees and customers. As guidance, even today, continues to evolve, one thing remains the same — daily cleaning and sanitation of all workstations and high-contact surfaces continues to be implemented at most Wisconsin banks.
While some procedures have been eradicated since early 2020, many of them have provided opportunities to further invest in the interest of both the customer and bank employees. “There is a greater awareness of health and public safety and [Bank First] has found that staff and guests are very understanding of any continued procedures and are thankful to see the end of some stricter protocols.” added Oakes.
Since the onset of COVID, community areas in bank branches have shifted their look and feel as well. While many areas remain open for additional seating, coffee and snack stations have either closed or shifted to individually packaged items. In addition, some banks, such as National Bank of Commerce in Superior, have closed their restrooms to the public unless specifically requested by a branch.
“National Bank of Commerce’s approach to protect our associates, customers, and the community, driven by our Business Continuity Plan, helped inform our desire to do what is right for our community,” said Lindsey Growette Stingle, senior vice president — human resources at National Bank of Commerce. “I believe that our associates have adapted well to the ever-changing environment and have shown a willingness to be flexible with the ultimate priority being the safety of their fellow associates, customers, and the community.”
As banks continue to balance differing customer needs in terms of health and safety in their offices, many continue to offer optional protection measures. “At National Bank of Commerce, hand sanitizer, masks, and (requested) rapid tests are still available to all associates,” says Growette Stingle. Additionally, many other Wisconsin banks continue to offer plexiglass shields at teller lines for bankers and customers who wish to use them and have incorporated remote options — either on a case-by-case basis or for those whose position allows.
“Educating the customer is critical in an institution with environmental changes,” states Parnon. “Finding productive ways to inform clients of [the bank’s] position regarding health, safety, comfort, and service is the first step in achieving good practices.”
While banks continue to update their COVID-related guidelines for both their staff and customers, creating safe and healthy spaces for community members has always been a priority for Wisconsin banks. While this may mean the sanitation of pens or the closure of specific areas, it is all done with the best interest of the community in mind.
Although the number of COVID cases throughout the state continues to decrease, banks carry on their commitment to their communities in everything they do. While these positive health-related activities are far from unheard of (even pre-COVID), the heightened public awareness of safe, hygienic spaces caused by the pandemic has allowed room for more solutions that encourage both accessibility and connection.