Writer: Jerrica DuBois
3 min read November 2023 — Collaboration, the impact of technology, and providing top-tier client service were key areas of focus for Paul Allen, Sean Simpson, and Damon Moorer at the recent Invest: Tampa Bay 2023 leadership summit.
The second panel, ‘Financially Sound: Evaluating how the last five years have changed the financial landscape and what’s to come,’ took a deep dive into Tampa Bay’s financial sector and the future of the industry. Moderator Abby Melone, president and CEO of Capital Analytics, kicked off the conversation with the current landscape and the new financial paradigm.
“I definitely think there has been a paradigm shift from the banking perspective,” said Simpson, division CEO of Synovus. “When you think about the pandemic and what occurred in that period, there was $7 trillion of liquidity pumped into the banking system. Banks had to deploy that capital, and lending was very strong. Then the battle of inflation and increased interest rates started about 18 months ago. It was so rapid that there was an intent on banks to keep some of those deposits. What we’ve seen is that $5 trillion out of that $7 trillion has been deployed. It’s not on balance sheets anymore.”
The discussion moved into the role of community banks in the financial landscape. According to Banking Strategist, banks with under $10 billion in total assets represent 97% of the industry and there are 4,489 active community bank charters across the country. Florida is home to 85 community banks, and for Tampa Bay, the top five community banks by asset are Southstate Bank, Raymond James Bank, The Bank of Tampa, Citizens Bank & Trust, and Bank of Central Florida.
“I don’t believe that community banking in 2023 is fundamentally different from community banking in 1965,” said Moorer, president and CEO of TCM Bank. “A community bank takes local deposits and turns those into local loans. That’s it. Larger banks will operate in multi-state or national and can take deposits from one state and deploy them in another. The second piece is relationships. If you are taking deposits from your local community and investing in your community, chances are you know who you are dealing with. You are not just a number.” To hear more, click here.
As technology and AI continue to impact and change the way all sectors do business, there is continued conversation about what that means for the workforce. According to Goldman Sachs, over 300,000 jobs are at risk of being reduced or eliminated by technology. While the banking and finance arena is not excluded, some positions within the industry are less likely to be overtaken by AI. Financial advisors, risk managers, compliance officers, traders, and investment bankers are among the professions that, according to job training provider skillfine, currently can not be replaced.
“I look at how AI is going to affect the firm itself and the way we work with clients,” said Allen, president of Wealth Strategies Partners. “Ninety percent of our job is as a psychiatrist and 10% is math. The most important part of our job is to make sure our clients don’t make knee-jerk, reactionary, emotional decisions. That’s the best way to not accomplish your financial long-term goals. There’s an argument that AI may put people like me out of business, but I don’t see it that way. I think AI can help us become more effective, but human beings want to work with human beings. I’m not quite sure how AI is going to help human beings not make bad emotional decisions.”
As the panel began to wrap up, the participants shared their thoughts on the future of the financial services industry in Tampa Bay, which ultimately boils down to understanding, and then providing, what the consumer wants.
“At the end of the day, consumers and clients still want the same thing,” said Moorer. “They want convenience, they want speed, and instant gratification. I hope to see more partnerships to develop new digital experiences that levels the playing field and allows for all banks of all sizes to compete and provide the best products and services to their communities.”
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