Sushil Tuli, Chairman & CEO, Leader Bank

Chairman and CEO Sushil Tuli talked to Invest: about how Leader Bank navigates the continuously evolving banking industry in Massachusetts, and voiced the strategies by which Leader Bank meets these challenges head-on.

What have been Leader Bank’s main achievements over the last 12 months?

Leader Bank celebrated its 22nd anniversary last year, and this year has been particularly exciting because the Bank now has more than $4 billion in assets, 385 team members working across 26 states and 15 locations between our branches, loan offices and corporate offices. The Bank was founded in 2002 with $6.5 million in assets, seven team members and one branch. Our growth and success have all been made possible by the steadfast dedication of our team, and we were proud to have been named one of the Best Places to Work in Massachusetts in 2023 by The Boston Globe, an honor that is particularly meaningful for us as it is voted on by our team members.

Given the economy and elevated interest rates, last year was challenging for the banking industry as a whole. As the #1 Home Purchase Lender among Massachusetts banks, our Residential Lending division continued to expand over the last two years with the addition of loan teams  in Holden, Cape Cod, and Topsfield. We have also bolstered our suite of lending products with the Purchase Pass Program to help homebuyers make their strongest offer and our Move and Improve Line which provides an additional cushion to homebuyers saddled with the financial burden of paying their buyer’s agent commission following the recent National Association of Realtors settlement.

Our insurance subsidiary, Leader Insurance, continues to outperform our expectations, and we have made investments in our 1031 exchange subsidiary, Leader1031, as well as upgraded our mobile and online banking for an enhanced client experience.

I am also incredibly proud that Leader Bank was named Bank of the Year by The Boston Real Estate Times as part of their 2024 Commercial Real Estate Excellence Awards. It’s a testament to the dedication of our Commercial Lending team and their efforts to help the region’s businesses achieve their goals.

The Bank was also recognized for our efforts giving back to the community by being named one of the most charitable companies in Massachusetts by the Boston Business Journal, marking the eighth year in a row we’ve been recognized by the publication for our charitable contributions.

How is Leader Bank adapting to changing trends in Boston’s banking industry?

The banking industry in Massachusetts remains healthy but continues to shrink. With bigger banks buying up smaller banks there are fewer and fewer privately-owned banks like Leader Bank left in the Commonwealth. We are also seeing a consolidation of credit unions and mutual savings banks. This has created an exciting opportunity for Leader Bank because of our emphasis on delivering a world-class client service experience – something that is becoming rarer in the Massachusetts banking landscape. 

One of Leader Bank’s core attributes has always been our ability to be nimble, and last year was no exception. Following the turmoil in the banking industry early last year, many of the region’s startups and venture capital firms were looking for a new banking partner. Leader Bank was able to step in and fill this void with the formation of a Venture Capital, Private Equity, and Startup Banking team, which continues to expand in 2024. 

Our rate of delinquent loans remains extraordinarily low, our foreclosure activity is nonexistent, , and the industry as a whole is benefiting from growth across multiple sectors. Our Commonwealth also has the best educational institutions in the nation, which contributes to our unemployment rate being so low. Massachusetts’ rules and regulations to open a business are more business-friendly than in many other states, which helps banks because new business owners need loans to help get their companies off the ground.

Have you observed a shift in demand for the services provided by Leader Bank?

Leader Bank is definitely seeing increased interest for all the services we provide. One area where we continue to see higher demand is our securities-based lending program for people who own mutual funds but need money on hand to buy a house or fund their education, for example. Our securities-based lending program allows our clients to obtain the liquidity they need by borrowing against their portfolio without disrupting their long-term investment plans. Our lockbox service also remains extremely popular with municipalities as it helps streamline their cash management operations. The Massachusetts banking landscape remains  extremely competitive, meaning you need to pay the best interest rate for someone to deposit their money, and we’ve found that our CDs remain very attractive to our client base for this reason.

How have client expectations shifted over the past few years, and how is Leader Bank shifting to meet those needs?

Technology has been the most momentous change. Clients no longer want to come to a bank in-person and now prefer all services to be delivered digitally with the same top notch service experience they’ve come to expect at Leader Bank. We’ve implemented DocuSign, so clients don’t need to come to a branch to sign paperwork when they open an account. We also continue to partner with ZSuite Technologies – which actually formed originally as a division of Leader Bank and later became its own separate company – to provide solutions for clients who manage apartment complexes so that they no longer need to travel to a branch to open up dozens of tenant security deposit accounts or to deposit monthly rent checks. We continue to adapt to our clients’ needs and are committed to evolving as technology advances.

How is Leader Bank adapting to higher digitalization and the use of AI or other technological tools to your advantage?

We’ve just started adapting to AI, and we are loving it, but we are also proceeding cautiously. While our bank policies will be utilizing the technology, none of our client information will be used with AI.

How is Leader Bank finding opportunities within challenges?

Every industry has changed since the pandemic – and the banking industry is no different. We’ve since shifted to a hybrid-remote work model where many of our team members have started working from home at least part time and we use video conferencing technology to stay connected. This has presented an opportunity as Leader Bank has continued to expand to hire the best talent from across the country no matter where they are located. For instance, while our call center employs around 20 team members and used to be housed on an entire floor full of phones, the center is now spread out across the country. Our Leader1031 exchange team is similarly spread out across the country with team members in the West Coast and Midwest. This has allowed us to tap into markets that our brand had previously not been able to reach. 

What is your outlook for Leader Bank over the next few years?

We want to continue to do what we do well, which is to grow the Bank. A few years from now, we hope to be a $5 billion bank. We want to continue to focus on organic growth and attract more clients as well as more qualified team members. Prioritizing innovative banking and lending solutions and world-class client service alongside philanthropic efforts to support our community has driven our success over the years and will continue to do so moving forward.