3 min read December 2023 — Invest: interviewed Ricky Maldonado, San Antonio market president at Texas Capital, about the trend of clients that want “advanced technology integrated with their banking operations,” how they are navigating the challenge of increased lending rates, and their recent two-year transformation to become an “institution that has all the capabilities of the largest banks in the world, while still feeling like a regional bank.”
How has Texas Capital grown over the last 12 months?
Our growth has been driven by our success in transforming ourselves over the past two years so that we could provide value to clients in so many more ways than before. This transformation began with the hiring of a new CEO, Rob Holmes, at the beginning of 2021. We have since evolved from an institution that primarily focused on loans and deposits to one that has all the capabilities of the largest banks in the world, while still feeling like a regional bank. Some new features we added were an investment banking platform with sales and trading capabilities and foreign exchange. This was very exciting for us, and clients and prospects have reacted very well. In San Antonio in 2023, we measured our new relationships with the firm, and it is the highest number ever to date. Our growth has been significant, both locally and as a firm as a whole.
How have you seen the preferences and concerns of your clients evolve over the last year?
There has been a lot of evolution, with a much higher demand from our client base for financial sophistication and technological security. That is where we have seen the biggest trend — specifically in the need for companies of all sizes needing advanced technology integrated with their banking operations. Clients also expect banking firms to be a strategic advisor on how to improve efficiency within their organizations. This trend started during COVID. A lot of people worked from home and had to reinvent how they did simple things like processing an invoice or making a vendor payment. For Texas Capital as a firm, we have invested heavily in technology in order to meet that need. Technology is also shaping how quickly we can bring new clients on board. Initio is our new proprietary digital onboarding platform, for example, through which clients upload documents on their own. This process allows for a seamless sharing of information, and ultimately a quicker account opening. Opening an account can now take days instead of weeks, which provides great value to clients looking to get their new banking relationship off the ground.
What are the overarching opportunities in the region for Texas Capital Bank?
It’s pretty simple: We need to increase our market share. As a 25-year-old institution as of 2023, we have grown organically, one client at a time. Now that we are the premier full-service financial services institution headquartered in Texas, we are in a prime position to accelerate our market share due to the increase in services that we now provide. In addition, thanks to our strong balance sheet, we are able to be financially resilient through all types of economic cycles. So we are here for our clients no matter what, and they know that they can lean on us as a strategic advisor in good times and bad. That is a real opportunity for our product and solution offering to grow our market share right here in San Antonio. Of course, in the end, it is on us. We must earn the right to be our clients’ first call. We know that, and we embrace it. And we know that we will always be defined by our clients.
How are you navigating the current economic conditions? What challenges are you experiencing?
The rate environment today is challenging. We went from a much lower rate to where rates are today, which can make things difficult depending on the market or industry. When those regional bank failures happened in March 2023, we grew our market share because we got out in front of our clients. We reached out to them within the first 48 hours of that volatility to say we are safe and wide open for business. This helped to release some of the pressure that they were feeling based on the headlines at the time. I hope it reminded them how much we truly care about them. One of our core goals at Texas Capital is to build trusted relationships. Trust is always tested in times of crisis, and we believe we passed that test.
What is your outlook for Texas Capital and the greater San Antonio market over the next two to three years?
In terms of rates, we are looking at higher rates for a longer period. And as we all see, there are a lot of headwinds from a macro level. However, Texas normally outperforms the rest of the country, so while we serve clients across the country, being based here in Texas and serving largely Texas-based clients makes us well-positioned. The outlook for Texas Capital is very positive based on our recent transformation and based on the markets that we focus on. In San Antonio specifically, we are attracting corporations to the area, and as a market, we have a lot to offer. We are centrally located in the country, and we have a diverse talent pool with multiple first-tier universities in the area. We have a good mix of industries that are well represented in San Antonio from manufacturing to service to military. Texas is a good market to be in during an economic downcycle because we are a growth market for the country and the state. This is nothing but positive for the firm, this great city and the region.
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