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Secretary Cheryll Olson-Collins

Retired DFI Secretary Olson-Collins answered questions from WBA regarding her tenure at DFI as well as her insights on Wisconsin’s banking industry.

1. Looking back on your time as DFI Secretary, what accomplishments are you most proud of, and what impact do you hope they’ve had on Wisconsin’s financial institutions?

It has been an honor and a privilege to work for Governor Tony Evers and serve as the Wisconsin Department of Financial Institutions secretary for the past three years. During this time, I am proud of our Division of Banking and our staff for the work they’ve done in ensuring the safety and soundness of our financial institutions, improving our oversight of Wisconsin’s banks, and protecting consumers of financial services. We’ve worked hard to improve our exam process for our state financial institutions. I have always tried to foster a consultative approach to the exam process. We’ve implemented a hybrid exam policy combining on-site and off-site reviews of our financial institutions. This has allowed us to be more efficient and nimbler in our work while also maintaining relationships with our banks and bankers across the state. We’ve also implemented a new training program for our examiners and received national recognition for it. Our continuous improvement mindset has ensured that our bank regulatory program has maintained top national standards and practices for state supervision, earning us reaccreditation status from the Conference of State Bank Supervisors last year. This professional recognition affirms our agency is meeting superior regulatory standards and demonstrates we serve the people of Wisconsin through operating an effective, skilled, and professional program with bank safety and soundness at the forefront of our supervision. This helps build confidence and trust in our Wisconsin banks, and it helps our banks better serve their customers, communities, and our state, too.

From our farmers to our small business owners and everyone in between, our Wisconsin banks have supported Wisconsinites in helping them reach their financial goals, served as catalysts for local economic development, and been instrumental to our state’s successful recovery from the pandemic. At the center of this work is ensuring that we’re making smart investments that benefit Wisconsin families, businesses, industries, and communities and that we’re creating systems that help individuals build strong financial futures for themselves. In 2023, I was proud Governor Evers signed a breakthrough budget that included a number of important initiatives that serve the financial interests of Wisconsin families, businesses, communities, and financial institutions, including securing a historic increase in shared revenue; providing the largest investment in affordable housing in our state’s history with a historic $525 million investment; repealing Wisconsin’s outdated and burdensome personal property tax; and exempting state taxation on income from certain commercial and agricultural loans. This legislation helped even the playing field for Wisconsin banks against competition, and it helped put our banks in an even better position to continue supporting our communities.

Also, thanks to our bankers’ help, Governor Evers signed bipartisan legislation to require students graduating from high school starting in the 2028 school year to take at least a one-semester course on personal finance. This new law makes Wisconsin the 24th state in the nation to guarantee a standalone personal finance course for high school students, helping ensure every student has a strong foundation for their financial futures. Financial literacy is something every Wisconsinite needs to be successful – from household budgeting and understanding consumer financing to insurance decisions and retirement planning. So, whether it’s supporting the Governor’s Council on Financial Literacy and Capability – a council we are glad to have the Wisconsin Bankers Association representation on – or helping us make sure everyone has access to financial education, services, and resources to meet their financial needs and goals, I’m proud of our Wisconsin bankers for their help in supporting Governor Evers’ financial literacy initiatives. Governor Evers is committed to supporting our banks and advocating for legislation that works to ensure people continue to choose our state as the place they want to move to, work in, start a business, and raise their family. And all of you are such important partners in that work. I look forward to seeing your continued partnership in helping to bolster Wisconsin’s financial well-being in 2025 and beyond.

2. What are the biggest changes you’ve seen in the banking industry over the course of your career, and how do you think Wisconsin banks have adapted to these shifts?

When I started my banking career with the First National Bank of Portage in 1983, I remember when everyone was loyal to one bank. They knew their banker and their banker knew them. While bankers still work to build those one-on-one relationships today, we’ve seen lots of changes within the industry. People no longer bank at just one bank. I remember when CD rates started skyrocketing and that caused everyone to start rate shopping between banks, which led to more competition amongst banks and the erosion of customer loyalty to just one locally based bank. Then came the introduction of the old desktop computers. Remember when they changed everything about how we conducted our bank business? Now, we all carry a pocket-sized computer wherever we go and can’t imagine life without them! Throughout my 42-year banking career, I’ve seen our banks weather the ups and downs of business cycles, changing economic and global conditions, new payment types (remember when debit and credit cards were cutting edge?), a global pandemic, ever-evolving cybersecurity threats and ransomware attacks, and the introduction of cryptocurrency and artificial intelligence. Through it all, I am amazed at how resilient our banks are and have always been. They’ve seen massive changes in their industry and their daily lives, and yet they still pivot, adapt, change, and grow every day. While we may not always be able to predict the next big challenge or change to our banking industry, we can count on the resiliency and adaptability of our Wisconsin banks to continue serving their customers and communities and protecting the safety and soundness of their financial institutions. Our banking leaders have led their banks through many new challenges and changes time and time again, and I expect that the coming years will be no different. The health of Wisconsin’s financial industry is strong thanks to our bankers’ steadfast commitment to helping our banks, people, and communities succeed.

3. As you retire, what advice would you give to Wisconsin bankers and financial leaders to ensure continued strength and innovation in the industry?

I’d encourage all Wisconsin bankers to keep their banks’ customers first in all they do, just like they have always done. It will never go out of style, and it will help ensure that our Wisconsin banks continue to innovate and adapt to their customers’ changing needs because the banking needs of future generations will not be the same as the banking needs of past generations. During my career, I’ve seen customers move away from the established banking norms of the past 40 years. They prefer immediate electronic transactions to the in-person interactions of the past. The financial industry is being driven exceedingly by emerging and evolving technologies, and our banks must continue adapting to them by maintaining a clear understanding of the issues affecting their customers, as well as their customers’ preferences and values. This understanding will show customers that our Wisconsin bankers truly care about them, their needs, and their financial goals. I have always believed that leaders first and foremost need to care. They must care about their employees, the people and businesses in their communities, and their bank’s mission to serve them. I hope I have conveyed just how much I care over the years, and even though I am retiring, I will always care about the people of Wisconsin, our communities, and our financial institutions across the state. I know our Wisconsin bankers will continue keeping their customers first in all they do because I have seen on a daily basis just how much they truly care. They are deeply invested in the health of our banks and the future of our banking industry, and this care and commitment will help them continue serving the financial interests of our people and families, businesses, and communities across the state. No matter what new changes the future may bring, I’m confident that our Wisconsin banks will be able to capably manage them as long as they care about the people and keep their customers first.

4. With emerging trends like cryptocurrency, AI, and evolving cybersecurity threats, what key opportunities and risks do you think bankers should be most focused on in the coming years?

It seems change always comes at lightning speed. Our banks have navigated the challenges of an unprecedented global pandemic, new emerging technologies, inflation, and rising interest rates without missing a beat. One of the biggest changes we’ve seen over the past decade that will continue to impact us for years to come is the rise in cyber threats to our information and data security. Over the past three years, we have seen a steady increase in the number of cyber incidents, breaches, and ransomware attacks that hit our banks and technology service providers. The operational and reputational damage that these incidents can cause is immeasurable. These cyber risks are further amplified by the implementation of new and upcoming technologies, such as artificial intelligence and quantum computing, that can be used to steal data and perpetrate fraud more effectively on banks and their customers than ever before. We may no longer be able to trust that the voice on the other end of the phone is a real human being – and that is a very scary reality to face. It’s also one that we, as a banking community, have to be prepared for. It’s why we have to make sure that our staff receive adequate and continuing cybersecurity training to keep up with these evolving risks, and it’s why we have to ensure that we have the right team of experienced professionals managing our firewalls, encryptions, and security protections over our networks and technology. This is extremely important, especially as our banks continue using new technology platforms and supporting new emerging methods of payments. We have seen banks’ interest in crypto-asset-related activities increase, including interest in engaging in crypto safe-keeping and custody services, facilitation of customer purchases and sales of cryptocurrency, and loans collateralized by crypto-assets. This emerging sector presents potential opportunities and risks to our banks, their customers, and the overall financial system. Banks looking to get into this sector should ensure that any activities promote safety and soundness, consumer protection, and compliance with applicable laws and regulations, including anti-money laundering rules. When considering new opportunities, I’d encourage our Wisconsin bankers to evaluate the opportunities from all sides, weigh the risks, and keep safety and soundness in mind at all times. Don’t get discouraged by hurdles along the way – keep moving forward. Our people, businesses, communities, and state depend on the continued strength and innovation of our banking industry.

5. What has been the most rewarding part of working alongside Wisconsin’s banking community, and how do you hope to stay connected with the industry in retirement?

I started my career working for a bank and chose to stay in the banking industry because I have always loved seeing the difference banks can make by changing people’s day-to-day lives for the better. It has been one of the most rewarding aspects of my career. I’ve seen firsthand how our banks help individuals and families buy, maintain, and keep their homes and put food on their tables. I’ve seen our banks provide funding for small businesses to support their local economies and promote innovation. I’ve seen our banks help farmers ensure their crops and livestock continue to provide food and products, not only for our state, but for countless others across the nation and the world. I’ve seen our banks provide construction loans for new commercial buildings and operating lines of credit to fund inventory and cash flow needs. Some of our banks even specialize in hospitality lending and are familiar with the unique seasonality and business cycles that impact hotels, restaurants, and other tourism industries. Our banks and their relationship banking philosophy is ingrained in the way they conduct business – one loan, one customer at a time. Our banks know local reinvestment helps businesses grow and families finance major purchases and build financial security. Our banks help keep money flowing locally in the communities where their customers live and work. Through periods of both good and bad economic times, Wisconsin’s banks remain anchors in our economy and communities by helping both local businesses and individuals alike on their paths toward success. Our banks have a direct impact on the quality of people’s lives, and I am grateful for all that our Wisconsin banks have done and continue to do for their customers, businesses, communities, and our great state. It’s been an honor and a privilege to contribute to our banking industry and work with bankers across the state. Keep up the great work serving the people of Wisconsin. I look forward to seeing all of the good things our banks and bankers continue to do moving forward. Thank you for your friendship, partnership, and trust over the years. I wish you all the best in your future endeavors, and I hope we can keep in touch. If you would like to reach me, please contact WBA at questions@wisbank.com to obtain my email address.

With warm regards and gratitude,

Cheryll Olson-Collins
Secretary
Wisconsin Department of Financial Institutions