Wow, I’m Actually Leaving My Day Job!

This week I celebrate an important anniversary in my professional career as I close this chapter and begin a new one.

Twenty years ago this week, I joined a small bank that would become one of the largest and most respected in the country. It has been an incredible ride, and I got the chance to work with some of the greatest people in the business. Not many bankers get to learn directly from an American Banker Banker of the Year CEO, but I have worked for two. At the same company. (Jerry Grundhofer and Richard Davis.)

During that time, we grew from $6 billion to nearly $350 billion in assets, and the market value of the company grew from $750 million to over $60 billion, with two 3-for-1 stock splits along the way. (More detail is available on My Day Job page.)

I know that the experiences and opportunities that I have had, the people I have met, and the things that I have learned will serve me well as I leave and begin a new chapter.

Where Do I Go From Here?

First of all, I will continue writing here about the intersection of leadership, advice and innovation. I started this blog as an outlet for my professional passions, and it has exceeded my expectations. It has been viewed thousands of times in over 30 countries, and my posts are also now available on www.bankinnovation.net and www.bankNXT.com.

New Opportunities

Secondly, I am thrilled with the new opportunities that have been presented to me so far–  and I haven’t even officially left yet! I feel very fortunate to have so many friends all around the industry, and very fortunate to know that I will have the chance to make a significant impact in another senior leadership role.

Hanging Out My Shingle

Among those current opportunities are some speaking and consulting engagements, so I will also add the titles Founder and CEO to my resume. I have started a new consulting firm called Clientific, LLC as a way to help others while I consider the right long term leadership role. The ‘intrapreneur’ gets to try ‘entreprenuer’ on for size– at least for a little while!

Let me know if you think I can help you or your firm.

Why Am I Leaving?

Simply put, the timing is right. I am proud of the work my team has done to help turn what was once a small regional bank into a competitive national platform. I have always called myself an “embedded entrepreneur” and said that I love to build great businesses with great people. That has certainly been the case here. The organization is ready for someone to pick up from here and take it to the next level, particularly with a deeper concentration on the high quality credit book we have built. I couldn’t imagine a more amicable and professional parting of ways, and I remain a fan and a friend of the bank and its leadership and teams. I wish them nothing but the best.

Stay tuned for details of my new adventures!

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Banker Jones and the Last Crusade: Is Wealth Management the New Holy Grail?

In my June 6 post 9 of 10 Banks Are Mulling an Overhaul I linked to the American Banker article that cited the findings from a KPMG study that also said:

Forty percent of the respondents said that asset and wealth management would be essential to expand revenue over the next few years.

But another article in the same issue of  American Banker (Missed Opportunities Abound in the Bank Channel) reported from the Prudential Wealth Management Leaders Forum in New York, which I also attended:

…banks haven’t exploited the opportunity too well. From 2009 to 2010 banks’ and insurance broker-dealers’ assets under management shrank to $600 billion, less than 5% of the $14.5 trillion wealth management market. Meanwhile, discount brokers grew to $2.5 trillion, cornering 19% of the market. Also growing in that time were registered investment advisors, which command 13% of the market, and private banks and trust firms, which command 8%.

Is Wealth Management the New Holy Grail?

Bankers seem to be acting like Indiana Jones in his Last Crusade (…well, last until he sought the Kingdom of the Crystal Skull, but that’s another post… OK, probably not.) in their pursuit of the Holy Grail and its promise of immortality.

A flat (and further flattening) yield curve, low loan demand and regulatory pressures on fee income and capital needs are causing bankers to seek new avenues for growth. (See also Is Bank Merger Mania Imminent?)

It’s easy to be attracted to the net overall growth of the affluent, high net worth and ultra high net worth segments and the impending transfer of $17 trillion in wealth from the baby boomers to younger generations.

But as the American Banker article points out, there is a huge gulf between “opportunity” and “success”. Over the past thirty years, a ‘build it and they will come’ strategy worked at some level for nearly everyone. Those days are long gone and they won’t be coming back.

No Easy Fix

Firms that want to gain market share from others will need to deliver true value to clients.

At the same Prudential Wealth Management Leaders Forum, Wallace Blankenbaker of the VIP Forum described the key drivers to loyalty– serve, tailor and teach. Clients want firms that are easy to do business with, firms that look out for their best interests and firms that can help them make better decisions.

If firms fail to deliver on those key drivers, funds will continue to flow from them to competitors that can deliver.

Wealth management isn’t the Holy Grail. It’s a specific set of services designed to solve the unique issues and meet the unique goals of a specific set of clients.

As I have said before, Don’t repaint the walls when you need to fix a cracked foundation.

“You must choose, but choose wisely. For as the true Grail will bring you life, the false Grail will take it from you.”

-The Templar Knight guarding the Holy Grail in Indiana Jones and the Last Crusade