Spotlight On: Damon Jenkins, SVP & Regional Market President, First Independence Bank
September 2024 — Invest: sat down with Damon Jenkins, SVP and regional market president for First Independence Bank, regarding the importance of financial literacy, the bank’s educational efforts for the community, and how smaller banks leverage technology to improve the customer experience.
What have been some of the overall contributions or impacts of First Independence Bank in the region in the last year?
One of our proudest achievements is launching the bank’s Operation HOPE program. The program is a free resource for the community, offering access to an on-site credit counselor who serves as a coach. Participants can take advantage of resources to help establish or improve their credit. We emphasize financial wellness and education, and credit repair is a crucial aspect. We are excited to offer seminars and one-on-one meetings to provide a detailed roadmap for growing and improving credit. This initiative demonstrates the bank’s commitment to empowering individuals through financial literacy, helping them achieve better financial stability.
What is the importance of financial literacy and education?
Financial literacy and education are critical components of growing and ultimately achieving generational wealth. Knowledgeable financial management helps individuals achieve their dreams, whether home ownership, entrepreneurship, or access to credit to support their financial journey. This empowers people to make informed decisions, build and protect their credit, and effectively partner with banks to reach their financial goals. It’s foundational to securing a financial future and fostering healthy relationships with banking institutions.
As First Independence Bank continues establishing its presence in the region, our goal is to become a trusted institution by meeting individuals where they are and connecting them with necessary resources to prosper financially. We’re committed to being a partner in their financial journeys and guiding them through the process. We strive to operate in a manner that supports the long-term well-being of the Twin Cities community. By promoting financial literacy and responsible banking practices, we contribute to the region’s overall economic health and stability.
What is your overview of the region’s banking sector?
The banking sector is facing challenges due to the rapid technological innovations that are influencing customer behavior. Nevertheless, banks must invest in these technologies to satisfy customer expectations and safeguard their information. Additionally, the evolving regulatory environment increases the costs associated with maintaining compliance. In 2023, the industry encountered disruptions, with some banks not surviving and experiencing significant losses in deposit relationships. Banks must adapt to the ongoing challenges in inflation and the cost of goods, which impacts customer behavior. This dynamic landscape requires banks to be proactive in their strategies, balancing the need for technological advancements with the imperative of maintaining security and regulatory compliance.
How does First Independence Bank leverage technology and innovation to operate efficiently?
As a smaller community bank, our focus is on investing in technology that enhances the customer experience. Customers are highly engaged in mobile and digital banking, therefore, we prioritize mobile, digital, and online banking investments to meet these needs and streamline operations for efficiency. This includes enhancing mobile apps and online platforms that allow customers to conveniently manage their finances. We aim to leverage technology to provide personalized services, improve operational efficiency, and stay responsive to our customers’ evolving needs. By carefully selecting the technologies that best serve our clients, we ensure that our investments are impactful and relevant.
How do you think artificial intelligence will impact the banking sector workforce?
Artificial intelligence will enhance the banking workforce by improving customer service and operational efficiency. AI has long been part of banking’s evolution, from using ATMs to tapping phones for transactions. It results in expedited customer service with chatbots and similar technologies. As demand for digital and mobile banking grows, AI will continue creating technological investment opportunities in technology and increase human capital to support these advancements. AI can streamline processes, reduce operational costs, and enhance the accuracy of financial services. However, balancing AI integration with the human touch is essential to help ensure customers receive personalized and empathetic service when needed.
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In what ways have client expectations shifted, considering the range of banking experiences available?
The convenience and immediacy of digital and mobile banking options have become crucial, and banks must continuously innovate to meet these evolving expectations. The pandemic accelerated the shift to mobile apps, online loan applications, and faster response times. These digital resources are now the standard for customers engaging with their financial institutions. Customers also want more personalized services, seamless digital experiences, and the ability to conduct transactions anytime, anywhere. Banks can enhance engagement, satisfaction, and loyalty by prioritizing customer-centric digital solutions.
What products or services are expected to be the main drivers of growth, and why?
Investment banking, commercial lending, home ownership, and small business growth are key drivers. There’s an increase in residential and commercial real estate development, which creates mortgage and commercial lending opportunities. Additionally, with baby boomers retiring, investment banking has a significant movement as people seek to grow and protect their wealth. The rise of new entrepreneurs and small businesses also presents growth opportunities in these sectors. As cities expand and evolve, the demand for financial services that support development and entrepreneurship increases. Banks can tap into the growing needs of individuals and businesses by focusing on these areas, driving sustainable growth and contributing to economic development.
Are there any specific regulatory and compliance issues you’re paying attention to?
Compliance with evolving regulations is critical, and we are dedicated to maintaining robust systems and practices to meet these standards. Anticipating regulatory changes and prioritizing security ensures that our operations are reliable and aligned with industry requirements. As a Minority Depository Institution (MDI) we are paying close attention to several key regulatory and compliance issues such as the Community Reinvestment Act (CRA). We must ensure we are meeting CRA requirements, which mandate that we help meet the credit needs of communities in which we operate, particularly in low- and moderate-income areas. We must also navigate the Consumer Financial Protection Bureau (CFPB) regulations related to consumer protection, which focuses on fair treatment in banking practices, transparency, and avoiding predatory practices. Cybersecurity and data privacy are crucial, and we are increasingly focusing on compliance due to growing regulatory scrutiny in safeguarding customer data and preventing breeches.
What is the outlook for First Independence Bank for the near term, and what are the top priorities moving forward?
The outlook is bright. We’re excited about the support we’ve received in this region. We aim to be a trusted community connector, especially for unbanked and underbanked communities. Our goals and priorities are consistent: to be a trusted community connector; foster long-term relationships and assist with building generational wealth, especially for the unbanked and underbanked communities; prioritizing financial education and literacy; and helping individuals understand banking and build assets at any stage of their financial journey. We are committed to offering innovative products and services that meet the evolving needs of our customers and ensuring that we remain a relevant and valuable financial partner. And finally, we will continue to focus on community engagement and building a strong presence as a reliable and supportive institution.
What is the outlook for the Minneapolis-St. Paul region’s banking sector for the next three to five years?
The sector will focus on making banking more inclusive through non-traditional methods while maintaining compliance with regulations. Financial literacy and education will be key to building trust and helping customers become better stewards of banking. As customer habits evolve, banks must adapt and create effective strategies to capitalize on growth potential, ultimately supporting the longevity of customer relationships and financial health. There is a significant opportunity to innovate and provide tailored solutions that meet the unique needs of diverse communities. By prioritizing inclusivity and education, the banking sector can foster a more financially empowered population and contribute to the overall economic prosperity of the region.
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