3 min read March 2024 — Brad Houser, Middle Tennessee president of BankTennessee, sat down with Invest: to discuss how community banking fits into Middle Tennessee’s ecosystem, the importance of relationships and partnerships, trends in technology and security, and the advice he has for someone looking to start a business in the area.
How has your background refereeing high-school football for the past 31 years influenced your approach to leadership at BankTennessee?
Officiating is hard because half of the time people will be telling you that you’re wrong, and the other half will tell you you’re right. This translates into the business world when conducting negotiations and solving conflicts. Some may think this is the other way around; if you are successful in your business and then become an official for a sport, you draw off of your business background. I find it to be the other way around. Being an official has helped me in what I do on a daily basis.
What differentiates BankTennessee from other competitors?
We all do the same thing – lending money, taking deposits. The big difference for BankTennessee is that we are a small enough community bank to be able to build true relationships with our customers. It is important for us to be a part of that customer’s business life and personal life. We are not the biggest bank, but we offer the same services. The thing that sets you apart is getting to know your customer and being involved in daily activities and helping them grow. By doing that, the bank grows.
What partnerships have you employed to support small-business owners in the Nashville market?
As fintech and Al become more relevant, it is becoming important for small- and medium-sized businesses to understand the dynamic of products available through fintech. As a community bank, we have decided to embrace this and look at new models for delivering services to our customers that a community bank has not done or been able to do in the past. With technology, that is now a possibility.
With heightened risks for fraud and scams, what strategies has BankTennessee implemented to enhance digital payment solutions and security for its customers?
Every month, our board meetings include discussions surrounding internet security and digital security because it is a huge concern for the bank. It is a concern for our customers as well. Sometimes individuals, myself included, get frustrated with having to receive a code and input it to continue a transaction; however, we are seeing first-hand a loss a customer sustains at their workplace because they do not have the proper security in place. It can be devastating for a small business. For the last 10 years, our bank has really focused daily on security with our staff. We have worked to ensure they are aware of new malware and ransomware products that are always working to infiltrate the bank system. Knock on wood, we have been very successful up to this point in not having a major issue due to our persistence in training that a small community bank needs to have.
What impact has the relocation of new residents and businesses to the region had on the banking sector?
The major driving force for Middle Tennessee right now is still the relocation of business-minded people to the area. I have always found it interesting to speak with those who are coming into the market about what draws them here. Obviously, we are centrally located with a great airport facility where you can get pretty much anywhere in the country in a reasonable amount of time. That, along with the business-minded nature of Middle Tennessee’s governmental entities and private sector working together, makes it inviting. We also do not have a state income tax, which is a big draw for some folks.
Why is it important for your customers to see BankTennessee giving back to its community?
Beside the regulatory demands put on banks to serve the community, we are a part of the local community and it is important for us to be there and offer services that help citizens and customers grow. As that happens, our bank and shareholders benefit. It is not all economic, though. There is satisfaction in seeing an expansion in being able to help families, especially someone moving up like a first-time homebuyer or a customer bringing their child in to get their first car loan. Those things are more about the satisfaction of helping people than the profit that comes along with it. It is key for us and any bank to be involved in the community and lending back to them.
What advice would you give someone looking to invest or start a business in Middle Tennessee?
If you are starting from scratch, you will want to gather people around you. Identify your mentors and those you can trust. Depending on the business, you will need a banker, and you should be able to rely on them. Starting a business in any area is tough. The failure rate of new businesses is extremely high. A lot of that is driven by people having a great idea and not knowing where to turn to get the advice to keep it going through tough times. That is where banks and other business industries can come into play.
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