Kathy Kraninger, CEO, Florida Bankers Association (FBA)

Kathy Kraninger, CEO of the Florida Bankers Association (FBA), spoke with Invest: about supporting existing banks and inspiring the next generation of bankers. “Our engagement is twofold: the opportunity to network and share best practices across institutions, and to promote the opportunity that comes with the industry as a career path.”

What are the most significant milestones and achievements for the Florida Bankers Association in the last year and a half?

Banks are a critical part of every community, city, and metro area. It’s the job of the association staff to represent the bankers in various ways. As an organization, we support bankers as they serve their communities and customers, and we do it through advocacy at the state and federal levels, through education and training, and by providing services and access to certification programs. Our engagement is twofold: the opportunity to network and share best practices across institutions, and to promote the opportunity that comes with the industry as a career path and for customers. It’s important to support free enterprise for our nation’s future. Florida is a state that supports business, as highlighted in the governor’s state of the state address. Florida is No. 1 for entrepreneurship and small business formation, and the banks are right there in the effort. The reason why small businesses and entrepreneurs can build their dreams is that they have a community banker supporting their ideas through relationship lending. Since becoming CEO 18 months ago, one of the first things I did was a touchstone involving the membership and staff to validate what they want from the FBA. The focus on promoting banking as a career and the next generation, and how important banking is to Florida communities are key focus areas for us. We are partnering with university leaders. While many banks partner with universities, we believe the industry can take a collective approach to promote banking as a career. We started the “Bank on Your Future” initiative at several universities that don’t just focus on specific jobs, but expose students to what they can do in banking across Florida. 

How does the FBA promote bankers in Florida?

One key example of how we are promoting banking is through the Center for Financial Training and the Future Bankers Camp partnership. They partner with students in high schools in underprivileged areas, focusing on financial services and technology, and bringing the students to a summer program. The summer program provides two weeks of training and a two-week internship to teach students what they can do in a banking career. We are looking to bring the program across the state to inspire the next generation to see banking as a viable career path. Advocacy remains our number one job. 

Can you expand on the regulatory policies FBA is advocating for at the state and federal levels?

Banks are the cornerstones of Florida’s communities, and looking at the community’s needs is how banks thrive. We are seeing an influx of people who want to live here and start a business, but there are challenges, such as affordable housing and insurance costs. The banking industry as a whole is partnering to address these headwinds, looking at a holistic way to address challenges. There are barriers to workforce and affordable housing that require action by government, community groups, financiers, and home builders — coalitions coming together. As bankers, we are looking at how we can be part of the conversation and solution. Last year, we hosted an affordable housing summit in Miami in partnership with Habitat for Humanity of Florida and the Florida Housing Coalition. Bankers are already investing in their communities in terms of development and community reinvestment. We focus on how we can help their clients and business partners to solve issues. Another area of focus is countering fraud, scams, and cybercrime. We have a vulnerable population in Florida, and bankers must ensure that customers are educated and protected, as well as advocating for appropriate public policy. 

How are Florida banks adapting their strategies to maintain stability and growth in the rapidly changing economic landscape?

Banks are here to take deposits and engage in lending activities, which are the lifeblood of these institutions. They work closely with their communities to help businesses, consumers, and customers serve their needs. Bankers are taking steps to diversify, including investment in warehousing and various development projects. Banks are addressing housing challenges and studying the economic landscape to understand where services are lacking. Regulatory barriers — particularly on the federal level — make it difficult to open a new bank to serve a niche community. Bank Miami is an example of a team that has overcome these challenges. As we celebrate their recent opening, I have to note that it remains a complex process.

What are the top priorities for FBA over the next few years, and how do you see Florida’s banking industry evolving in the near future?

A key priority is shaping public perception of banks and bankers. There are many trust issues in society today, and we want to ensure that the public sees their banker as serving their communities. There is still work to be done in restoring trust, especially following the financial crisis and addressing the trust deficit in institutions. Introducing the youngest generation to banking is vital. I had my first checking account when I was 11 years old. I went to the bank with my mother, spoke with the banker, and learned how to balance a checkbook, but the world is very different today, and customer expectations have changed. We need to reintroduce banking services, educate people on why banks matter, and demonstrate how they can protect customers and their resources. The regulatory environment needs to evolve to meet customers’ expectations. Some banking laws date back to the 1970s, requiring lengthy disclosure documents and stacks of paperwork that do not provide meaningful protection. There is a lot of work ahead, but also many opportunities. I took this job because I love bankers and believe in the work they do in their communities.