3 min read May 2024 — In an interview with Focus: Rob Garcia, regional president of Pinnacle Financial Partners, talked about how Pinnacle is actively engaged in the community, why their dedication to service excellence, particularly their ability to create human-centered solutions, sets them apart, and the importance of building deep relationships with financial partners.
What have been some major highlights over the past 12 months?
We started in January 2020 with the Atlanta market for Pinnacle because we thought 2020 would be a great year to start a bank, but COVID had a little bit of an interruption in our first year. However, it has been an amazing three years following that. We started with just two of us on day one, and a rented location that was one of those rental office places providing all the services, like a coworking space. Now, in 2024, we have over 100 people, opened our fourth location, and signed a lease for our fifth location. We have grown to a sizable balance sheet in just three and a half years.
How has Pinnacle’s vision emphasizing deep relationships with financial partners impacted growth and client satisfaction in the competitive Atlanta market?
At Pinnacle building relationships is our secret sauce that we hope to make not so secret, and it embodies our core strategy of providing distinctive service and effective advice. While the aspiration to offer good service is universal, defining it varies, particularly in the dynamic landscape of banking. Atlanta stands as a prime example, witnessing heightened disruption with recent mergers of two major regional banks and significant restructuring within a national bank. In such times of flux, banks like ours seize opportunities to thrive by delivering unique value propositions and sound guidance, ultimately gaining market share.
Central to our success is our relentless pursuit of top talent. Disruption often breeds disillusionment among employees, presenting us with opportunities to attract and retain the best in the industry. Over the past three and a half years, we have been fortunate to onboard some of the most exceptional banking professionals. Our commitment to continuous recruitment underscores our belief that having the best talent fuels our growth trajectory.
Moreover, our focus extends beyond mere recruitment as we prioritize fostering a culture of employee engagement and satisfaction. We recognize that happy associates translate to satisfied customers who not only appreciate our services but also become loyal advocates. This virtuous cycle of employee happiness and customer satisfaction has been instrumental in propelling our rapid growth and market penetration, especially because people want to talk to someone instead of just being a number.
Which of Pinnacle’s services are experiencing the most growth, and what does this trend indicate about the current needs of your clients?
It’s interesting how banking, at its core, is not an overly complex industry. It’s essentially about providing deposit opportunities, investment avenues, and managing money. Most banks offer similar products, which is why the true distinction lies in execution. Take treasury management, for instance; a service offered by every bank. Some institutions have invested heavily in sophisticated treasury platforms. Yet, in nearly every market we operate in, Pinnacle ranks number one in delivering treasury services. Studies consistently show our platform’s efficiency, solving 95% of client needs.
What sets us apart? It’s our unwavering support for the product. While others may simply ship equipment with basic instructions and a support hotline, we take a more hands-on approach. We personally deliver the product to your office, handle installation, ensure everything runs smoothly, and leave you with direct contact information – often including cell phone numbers – for immediate assistance. We go the extra mile, even monitoring initial transactions to guarantee seamless operations.
This dedication to service excellence extends beyond treasury management as it’s ingrained in every banking product we offer. Anyone can have a treasury platform, but it’s how we deliver those services that truly differentiates us from the competition.
Could you highlight some of Pinnacle’s proudest community engagement efforts?
Being involved in banking means being integral to the community, not just sending a check. It’s easy to write a check and check off boxes, but our approach goes beyond that. We actively encourage our team to participate in community boards, chair events, and make a real difference. Personally, I have served on numerous boards for over 20 years, including prominent organizations like the Cobb Chamber and the Atlanta Regional Commission.
We want our team to be front and center in community engagement, not just passive participants. Moving beyond rhetoric, let us talk about how we are transforming our market. We are excited about our newest venture, the Pinnacle Economic Empowerment Resource (PEER) Center, located in a majority-minority area near Georgia Tech. [Anticipated opening 3Q24.] This full-service branch is not just about banking. It’s about building resources for an underserved population. We are committed to providing counseling, support, and training classes to empower individuals economically.
How do you perceive the current financial services landscape in Atlanta amidst the prevailing economic uncertainty for the last three years?
Atlanta has truly been a unique market, with remarkable population growth driving the economic development of Georgia, particularly in areas like Cobb and Gwinnett County. I have been involved in these activities for years, including efforts to bring the Atlanta Braves to Cobb County. This growth has historically shielded Atlanta from economic challenges that impact other regions. Even during housing downturns, our rapid absorption due to population growth helped us bounce back quicker than many other areas.
While the tech industry’s growth in Atlanta may be slowing, it is still significant, and housing shortages persist across the metro area. However, the housing market’s challenges are altering our competitive edge. Atlanta’s appeal used to lie in its affordable cost of living, particularly in housing, along with its exceptional education system and favorable climate. With top-notch universities like Georgia Tech and Georgia State, coupled with our commitment to education, Atlanta has been an attractive destination.
Yet, the affordability of housing, once a key advantage, is diminishing. Our housing costs have risen significantly, eroding our competitive position against other metro areas. High interest rates in recent years further compound this challenge. As we compete for business relocations against cities like Dallas, housing affordability is no longer a clear advantage. Addressing this issue of affordable housing is crucial for our region’s continued growth and competitiveness.
Could you share some ways you are leveraging technology to enhance customer experience?
Technology is revolutionizing everything at an unprecedented pace. My children, for instance, were discussing AI the other day, a concept that was unheard of just a couple of years ago. It’s remarkable how quickly things are evolving. In banking, technology is paramount. The ability to offer seamless money management solutions is crucial, especially given the tech-savvy nature of the younger generations.
However, despite the emphasis on technology, I believe the ability to create human-centered solutions remains a competitive advantage in banking. Take our treasury management service, for example. While our platform is efficient, it’s not what sets us apart. There are platforms out there with more bells and whistles. Yet, it’s our approach to delivering services that truly distinguishes us. Even though competitors may offer similar solutions, it’s the personalized touch and attention to customer needs that will continue to be our competitive edge in the industry.
What is your outlook for both Pinnacle and the banking industry in Atlanta over the next two to three years?
We are incredibly excited about the opportunity ahead. From Cobb County to North Fulton, Buckhead, and now Atlanta, with plans for a flagship office in Gwinnett County within the next three months, our expansion has been rapid. As we continue to grow from these major centers, venturing into smaller markets like Cherokee and Forsyth County, we see tremendous potential.
In a landscape where three banks dominate 60% of the market, disruptions are ripe for the picking. With two of these major banks undergoing significant upheavals, there is a clear opportunity for banks like us to carve out a niche with a distinct value proposition. Our goal is to seize market share by attracting the best talent and serving the best customers.
The prospect of growth and gaining market share excites us, and we believe this opportunity will be present for quite some time. It’s an exhilarating time to be part of the banking industry, and we are ready to make the most of it.
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