My Final Thoughts as President PRESIDENT’S MESSAGE I’ve been thinking about bank operations a lot lately. The term “bank operations” is a widely encompassing phrase that, depending on each individual financial institution’s practice, could cover a small area, i.e. only bookkeeping, or an entire backroom or non-customer-facing function. Deposit operations could include not only bookkeeping but also the management of the entire core deposit function: online banking, mobile and remote deposit, debit cards, ITM/ATM, electronic or digital banking, treasury management or business banking. The lending operation’s function also varies depending on the individual bank’s needs. Regardless of what part of the process fits in the lending operations bucket in your bank, the most important fact, as with the deposit side, is that we structure the process to best serve our customers. Several of our MIBA member banks have many employees wearing multiple hats, even deposit and loan operations simultaneously. Besides the two prominent areas of deposits and loans, many other areas fall under the backroom or operations umbrella: compliance, audit, risk, information technology, finance and security, including fraud and cybersecurity. There is no single best practice or process. What is best for each of us is what our bank, our communities and our customers need. Management of that process, regardless of the structure or procedures, is what is most important. Bank management provides administration and oversight of bank operations to ensure financial stability, regulatory compliance, customer satisfaction and profitability. These are four very simple tasks, but sometimes they run opposite of each other. We are tasked with the daily management of credit, risk, compliance, operations, human resources, technology and the resulting financial performance. These key functions of bank management will vary from one person with many hats to whole departments, with the ultimate responsibility flowing up to the CEO and the board of directors. Challenges in today’s banking environment include digital disruption, regulatory pressure, cybersecurity threats, changing customer expectations and interest rate volatility. However, strategies for effective bank management are adapting to be agile, investing in technology and people, creating a strong risk culture, enhancing customer experience, focusing on your people, and creating a culture that attracts and retains customers. Effective management is financial prudence, technological advancement, customer-centric practices and strong governance, which allow us to remain competitive in an ever-evolving landscape. I encourage each of you to think about your bank’s operations and ask if they are working for you. Doug Fish MIBA President, BTC Bank, Bethany, MO 4 | The Show-Me Banker Magazine
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