On the road with Jim……Augusta, ME

June 3, 2009   Posted in Uncategorized

May 13, 2009, found me in Augusta, Maine, delivering “The Six Factors Defining the Industry’s Next Five Years.”  The event was held at the Augusta Civic Center, famous for being the historic site of Elvis Presley’s only Maine appearance (May 24, 1977).  Elvis played Augusta and now I had my opportunity!

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My strategic outlook session focused on the six factors defining the future of the banking industry.  We used our SurveyMattersTM technology to conduct instant polling of the 175 member audience.

Here are some of the polling highlights:

  • The directors were split on the possibility of a fourth quarter economic turnaround. A slight majority (54%) predicted that the 4Q09 GDP will be positive. A slightly smaller group (46%) called for a negative 4Q GDP. This split illustrates the high degree of short-term economic uncertainty that banks face this year.
  • Directors don’t see new banks forming in Maine next year. More than three-quarters of attendees believe there will be zero de novo banks opening in 2010. This outlook contrasts with Massachusetts directors that project several de novo banks opening in Massachusetts in 2010.
  • Ongoing compliance costs seem to be rising for many banks. Many banks have added compliance employees and/or outsourced compliance activities to respond to higher regulatory requirements. Some banks also believe they will add additional staff and/or outsource more compliance tasks in the future. This response shows one real cost of the complex compliance environment – higher employee and outsourcing expenses.
  • Directors overwhelmingly believe that robust Internet services and mobile banking are essential to capture today’s new customers – Gen Xs and Ys. To that end, a small number of banks already offer mobile banking and many more plan to launch mobile banking soon. It appears mobile banking in Maine will have a relatively rapid bank adoption rate.
  • Attendees also reported that core deposit competition has heated up. In fact, recent core deposit competition is reported to be greater for many banks as compared to residential mortgage and C&I lending competition.

The city of Augusta was great and the directors were highly engaged and focused on the current state and future of Maine’s banking industry.

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About Jim Jones

James D. Jones, a national speaker for 16 years, has presented to financial services and mortgage audiences for organizations of all sizes.More >

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