Over the past few years Tammie and I have traveled to the Isle Of Palms to relax, enjoy the beach, read books, and eat good seafood. Traveling there annually has allowed us to become familiar with the lay of the land and the changes brought by the waves.
This year, instead of my morning walks on the beach, I had walks in the neighborhood since the tides were way up and some dunes were eroded. Later in the day, the low tide showed docks, walkways, and even homes that were on the precipice of being hit by the waves or already damaged (sea water in one pool, two decks hanging over the beach).
During the day we saw a firm (via land and boat) measuring the area of the beach and ocean. We then read online about homeowners up in arms as their actions to protect their beach property had to go through numerous groups for approval. We also saw professionals sharing that walls, if built, would have limited short-term benefits and not change the course of the future.
Over the years most of you have heard me talk about the “waves” of change that have and are coming to the banking industry.
Our Options
We can stand back and think the banking that was good enough for our fathers or grandfathers is good enough for the banking customers today. But, that thinking is like the “house built on the beach.” Sooner or later the waves or storms of change will destroy the home.
Banking waves would wash away a bank unwilling to change into history like it has the 35,000 banks that have sold out since 1980, leaving only 4,000 banks left in America.
That is the old banking model.
We see that model being eroded by the lack of customers coming to the bank – the thousands of transactions every month from PayPal, Venmo, Cash App, or loan payments to Rocket Mortgage or Buy Now Pay Later (BNPL services).
Our other option is to get a boogie board or boat and ride the waves and become a financial tech company with the added value of having local and caring folks for our customers.
The waves of financial change most likely will be rough.
But we can navigate the waters of change and maybe even have some fun.
Nature can teach us a lot. Including the fact that nothing stops waves (of any kind) forever.
Have a great week. – Leton
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“Letters From Leton” is a blog series comprised of the weekly updates that Leton Harding – President, Chairman, and CEO of Powell Valley National Bank, shares with the Bank’s team members. These newsletters are full of uplifting anecdotes and intriguing insights that are applicable beyond the Bank, so we want to share them with you.
