Meet DFI Secretary-designee Wendy K. Baumann

The Wisconsin Bankers Association (WBA) recently asked Wisconsin Department of Financial Institutions (DFI) Secretary-designee Wendy K. Baumann a series of questions as a way of introducing her to members. WBA wishes Secretary-designee Baumann all the best in her new role.

What put you on the path to your profession in the financial services industry, particularly your leadership role at the Wisconsin Women’s Business Initiative Corporation (WWBIC)?

Early on in my post-secondary education and career, I found an interest in advancing what I would say is “the good” – trying to make the world a better place. My first professional position out of undergraduate college was working at Goodwill Industries and assisting underserved and lower wealth individuals obtain competitive employment. I loved it and might still be there today if my personal life had not taken me to France for a year and having a second child there. When I returned to the states, they had filled my position, so I then began work at The Council for the Spanish Speaking and also loved that, and it was there where I was introduced to commerce and the power of individuals starting or growing their own businesses. My father had owned many small businesses, too; thus, the exposure supported what I had experienced at home, but at The Council for the Spanish Speaking, I saw that problems and day-to-day issues could be overcome with not only a job but by individuals having their own money. If individuals can work – start that business and have the opportunity to do so through fair and reasonable capital – then lower income and underserved communities in essence can support themselves. I saw this strategy of economic development as more of a solution in our overall economy, and the Wisconsin Women’s Business Initiative Corporation (WWBIC) did just that – provided financial and business training coupled with fair and responsible capital to start or grow a small business.

What has been the most meaningful aspect of your career thus far?

Serving as WWBIC’s president and chief visionary officer for 31 years was truly an honor and now being appointed by Governor Tony Evers to serve the people of Wisconsin alongside fellow cabinet secretaries and Wisconsin Department of Financial Institutions (DFI) team members is an additional honor. I am grateful to be able to serve my state and continue my lifelong commitment to economic empowerment, financial inclusion, and business success for all, and especially for underserved communities and populations.

What/who inspires you and motivates your work?

Overall, it’s all about doing the right thing – providing quality and meaningful services – being part of making a positive financial impact motivates me each day. I am motivated and thankful working alongside others who carry that same sentiment of service above self. The DFI is very well run and committed to protecting the safety and soundness of Wisconsin’s financial institutions, safeguarding the investing public, facilitating commerce, and increasing financial capability throughout the state – so every person in Wisconsin has the knowledge, tools, and resources to build a stronger financial future.

How would you describe your vision for the future of DFI?

We all want an economy that is strong and vibrant for all people and families who call Wisconsin home. The strength of Wisconsin’s economy comes from its people, and an individual’s strength comes from their financial wellness. At DFI, we are committed to advancing financial literacy, access, and opportunity. We promote financial literacy, capability, and inclusion efforts for all Wisconsin residents, and provide administrative support to the Governor’s Council on Financial Literacy and Capability, which advances financial literacy and education through resources, programs, and partnerships to help Wisconsinites develop money management skills, improve credit, and plan for financial security. We encourage businesses, nonprofits, and financial institutions to promote financial education efforts, helping ensure more Wisconsinites have access to budgeting, investing, and credit-building tools, as well as retirement planning resources, homeownership support, and savings incentives. As we look forward, my goal is to ensure that Wisconsin champions financial well-being for everyone, and especially for historically underserved populations because when underserved populations thrive financially, families, businesses, and entire communities become stronger. Financial empowerment is not just about money – it is about opportunity, security, and freedom. Together, we can build a future where every person in Wisconsin has the financial knowledge, confidence, and resources to achieve their goals and dreams. I look forward to working with all of you to make this vision a reality.

What opportunities and challenges do you foresee in the coming years, and how should bankers prepare for them?

As I shared during the Wisconsin Bankers Association’s Capitol Day in early May, there are more uncertainties and curve balls ahead. Changing demographics and preferences are pushing our banks towards technological innovation. With these changes comes cost, as net interest margins are already compressed and earnings are down. These changes also introduce risk. In addition to current issues with check fraud, ATM theft, and jackpotting, there are risks with artificial intelligence, such as mimicking voice authorizations and other deepfakes. As always, cybersecurity will continue to be an ongoing concern. With new technology, there are new and more sophisticated ways for bad actors to find a way to breach a system and steal data. Finally, an ongoing concern involves recruiting talent and planning for the succession of bank management. We are seeing the challenges, especially in more rural areas, of finding the next generation of bankers for the future of these community banks. Don’t get discouraged by these challenges – keep moving forward. Our people, businesses, communities, and state depend on the continued strength and innovation of our banking industry. While we may not be able to predict the next big challenge or change on the horizon, 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 our financial institutions. Our banking leaders have repeatedly led their banks through new and ongoing challenges and changes, and I expect that the coming year will be no different. Our bankers should navigate the promise of innovation with the costs and risks, be vigilant with fraud and cybersecurity, and monitor how the changes at the federal level will impact businesses and customers in Wisconsin. By doing these things, our Wisconsin banks will continue to be a source of strength for our people, businesses, and communities.

Having served as the former chair and current co-vice chair of the Governor’s Council on Financial Literacy and Capability, could you reflect on the importance of financial education in Wisconsin?

Financial literacy and personal finance education are the keys to building a stronger financial future for individuals, families, communities, our state and collective nation. I grew up with a “spend what you can afford and save as much as you can” mindset. Many, as we know, did not have such advice and need support through our educational system, workplaces, and often later in life. The Governor’s Council on Financial Literacy and Capability and the collective efforts and strides the Council has made over the years ranks Wisconsin as one of the top states providing sound programming and support in personal finance. From the recent bipartisan legislation requiring students to take at least a one-semester course on personal finance in all our Wisconsin high schools to the recognition of teachers, policy makers, community members, bankers and the like with the annual Governor’s Financial Literacy Awards for helping Wisconsin residents build financial literacy and capability skills. Making a positive financial difference in the way individuals utilize their financial resources from young to the elderly is key to building a stronger financial future for all.

Is there anything else you would like Wisconsin bankers to know about you or your work?

DFI is dedicated to protecting the safety and soundness of Wisconsin’s financial institutions throughout the state. Our work ensures that the entities we regulate operate safely, fairly, and in compliance with state laws to protect consumers and maintain a strong financial system and economy. By ensuring our state-chartered financial institutions are safe and sound, we will continue serving the people, businesses, and communities of Wisconsin with your help. Our banks support Wisconsin residents by helping them reach their financial goals and needs and they serve as catalysts for local economic development. Together, we can help individuals and families build savings, invest in education and housing, capitalize on business opportunities, save for retirement, and cope with various economic shocks. If you would like to reach me, please email: DFISecretary@dfi.wisconsin.gov. I look forward to working with all of you!