July 2019 | americanbanker.com Citi is improving its image with customers. Most other banks are headed in the opposite direction. What’s going on? ANNUAL SURVEY OF BANK REPUTATIONS By releasing gender pay data that other banks would not, Citi scored points for transparency. Sara Wechter, global head of human resources, played a key role in the decision. 001_ABM_0719 1 6/10/19 2:56 PM FIFTH THIRD CORPORATE BANK FINANCIAL INSTITUTIONS WHERE EXPERIENCE AND INNOVATION INTERSECT. Joshua H. Landau SVP, Corporate Banking Group Head Financial Institutions Group Josh and the Financial Institutions Group experts at Fifth Third Corporate Bank do more than o er competitive capital solutions. They build personal relationships with clients and provide meaningful guidance through all economic cycles— resulting in a partnership that’s truly strategic, fl exible and e cient. This is banking a Fifth Third better.® 53.com/CorporateBank Member FDIC 0C2_ABM0719 2 6/10/2019 4:16:35 PM Contents July 2019 | VOL. 129 | NO. 7 Reputation Survey 16 10 Reclamation Project Other industries reversed their previous downward trend, but perceptions of the banking industry continue to deteriorate. Here are some steps banks can take to try to burnish their reputations. 16 Citi Takes a Stand Citigroup is scoring points for its willingness to go further than its peers in releasing gender pay-gap data and for acting on some controversial social issues, like gun control and climate change. Now it aims to do an even better job of reflecting its values in how it does business. € ₤ 4 8 Briefings 6 BankThink Taking a Chance on Mortgages 4 Organizers of NXG Bank, a de novo effort in 20 German import How to Defuse Workplace Tension Maryland, are making a large bet on a busi- After a lot of success in Europe, a company With millennials being so expressive, ness many banks are avoiding called Raisin is bringing a new type of generational differences are becoming more financial subscription model to the United of a factor in workplace conflict. Companies States: deposits-as-a-service can avoid big headaches if managers learn BankTechnology how to address squabbling, consultant Jeff 5 8 Butler writes Who doesn’t respect their elders? 14th-Century Roots, A video-game-style program developed by 21st-Century Model AARP teaches bank employees how to detect The Renaissance-era Italian family that BackPorch financial abuse of the elderly pioneered branches and letters of credit is involved in launching a tech-forward disruptor 24 6 in the United States Quotes from Ben Carson, Jamie Dimon, Mark M&A hot spot Calabria, and more Banks drawn by a strong economy and the opportunity to court Hispanic customers and businesses are shopping for deals in the Miami area americanbanker.com July 2019 American Banker 1 001_ABM0719 1 6/10/2019 2:32:17 PM Volume 129, No. 7 american banker.com Editor’sWhat’s View going on Executive Editor Bonnie McGeer Art Director Robin Henriquez Contributors Penny Crosman, Paul Davis, Matthew de Paula, Will Hernandez, Alan Kline, Ken McCarthy @americanbanker.com Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 Phone 212-803-8200 Emails [email protected] www.americanbanker.com Editor in Chief Rob Blackwell 571.403.3834 Managing Editor Dean Anason 770.621.9935 Executive Editor Bonnie McGeer 212.803.8430 Senior Editor Alan Kline 571.403.3846 Editor at Large Penny Crosman 212.803.8673 Washington Bureau Chief Joe Adler 571.403.3832 Technology Editor Suleman Din 212.803.8738 BankThink Editor, Deputy Washington Bureau Chief Victoria Finkle 646.477.7549 Community Banking Editor Paul Davis 336.852.9496 News Editor Andy Peters 404.500.5770 Contributing Editor Daniel Wolfe 212.803.8397 Digital Managing Editor Christopher Wood 212.803.8437 Copy Editor Neil Cassidy 212.803.8440 Reporters/Producers Laura Alix 860.836.5431 Kate Berry 562.434.5432 Nathan DiCamillo 212.803.8246 Neil Haggerty 571.403.3837 John Heltman 571.403.3847 Will Hernandez 212.803.8731 Hannah Lang 571.403.3855 John Reosti 571.403.3864 Gary Siegel 212.803.1560 Jackie Stewart 571.403.3852 Kevin Wack 626.486.2341 Rachel Witkowski 571.403.3857 Group Editorial Director, Banking/Capital Markets Richard Melville 212.803.8679 Executive Director, Content Operations and Creative Services Michael Chu 212.803.8313 ADVERTISING MOST READ MOST SHARED VP Sales, Banking & Payments Dennis Strong 212.803.8372 Shrinking mortgage margins Northeast Average profit per loan (in basis points) 60 Brad Bava 212.803.8829 Midwest/Southwest 50 Shelly Schmeling 312.932.9392 40 West 30 Sara Culley 831.438.8408 20 Midatlantic/Southeast 10 David Cleworth 843.640.3713 0 Marketing Manager 2014 2015 2016 2017 2018 Source: Mortgage Bankers Association survey of 280 banks, nonbanks Deborah Vanderlinder 212.803.8323 Bloomberg News Group Director Custom Marketing Solutions Virginia Wiese 704.987.3224 Wells Fargo’s Appeasement Dept. Souring on Mortgage Lending Customer Service/Subscriptions [email protected] 212.803.8500 Wells Fargo created an operations Many banks have scaled back home Licensing and Reuse of Content: Contact our official unit designed to focus exclusively on lending or even left the business. With partner, Wright’s Media, for more information about available usages, license and reprint fees, and award meeting demands of regulators who profit margins shrinking, inventories of seal artwork at [email protected] or (877) 652-5295. Please note that Wright’s Media is the have expressed dissatisfaction with its affordable homes at stubbornly low only authorized company that we’ve partnered with for SourceMedia materials. progress after a series of scandals. The levels and competition from nonbanks $1.88 trillion-asset company has been intensifying, expect more banks to in the regulatory penalty box since turn what once was a reliable profit February 2018, when the Fed imposed generator into an afterthought service a cap on its asset growth. within their branch network only. CHIEF EXECUTIVE OFFICER....................................Gemma Postlethwaite American Banker (ISSN 2162-3198) Vol. 129 No. 7, is published monthly by SourceMedia, One State Street Plaza, 27th Floor New York, CHIEF FINANCIAL OFFICER ...........................................................Sean Kron NY 10004. Subscription price: $149 per year in the U.S.; $229 per year for all other countries. Periodical postage paid at New York, NY EVP & CHIEF CONTENT OFFICER .................................David Longobardi and additional U.S. mailing offices. POSTMASTER: send all address changes to American Banker, One State Street Plaza, New York, NY CHIEF STRATEGY OFFICER ........................................................Jeff Mancini 10004. For subscriptions, renewals, address changes and delivery service issues contact our Customer Service department at (212) 803-8500 CHIEF DATA OFFICER ............................................................ Christian Ward or email: [email protected]. Send editorial inquires and manuscripts to American Banker, One State Street Plaza, 27th Floor, New SVP, CONFERENCES & EVENTS ..........................................John DelMauro York, NY 10004. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering financial, legal, accounting, tax or other professional service. VP, PEOPLE & CULTURE ...................................................................Lee Gavin American Banker is a registered trademark used herein under license. © 2019 SourceMedia, Incorporated and American Banker. All rights reserved. www.americanbanker.com. 2 American Banker July 2019 002_ABM0719 2 6/10/2019 2:33:12 PM “The key to this business is advice. The way we combine technology and our advisors to deliver it is what sets us apart.” — RHOMES AUR CEO, FTB Advisors, Inc. EVP, First Tennessee Bank RISE above the rest Rhomes Aur and FTB Advisors saw an opportunity to establish a new level of advice delivery. By combining technology with the bank’s hometown culture, they proactively engage their clients in all types of markets to develop solutions that evolve with their unique needs. Watch Rhomes’s story, and learn how Fidelity is the change agent helping banks and trust companies build a future-ready business. Visit go.fidelity.com/transformnow or call 877-262-5950. Transform for the future with Fidelity. FTB Advisors is a client of Fidelity Clearing & Custody Solutions® and is an independent company, unaffiliated with Fidelity Investments. Its business needs and results may not reflect the experience of other Fidelity clients. Fidelity Clearing & Custody Solutions provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. © 2018 FMR LLC. All rights reserved. 828391.1.0 34481_26_AD_RHOMES_Amer_Banker_FP.indd003_ABM0719 3 1 6/10/20195/16/18 4:16:39 7:59 AMPM Briefings DEPOSITS | ELDER ABUSE | M&A | MORTGAGES more easily connect to banks. Raisin also has benefited from European consumers’ lack of loyalty to their primary bank. “People shop around more, specifi- cally when it comes to relationships online,” he said. “There’s convenience there, and we think that’s happening in the U.S. as well.” Raisin’s other challenge is that it will need to build American consumer awareness. Georgadze said the fintech will seek to do so through various marketing efforts and partnerships.