5 Hoosier Banker June 2016 day there are no products and services that some nonbank competitor can’t offer. As with individuals who play roles so long that they change their personas, in the public’s eye these companies that pretend to be banks eventually are perceived as banks. This was never more obvious than at the beginning of the financial crisis, when the national news media labeled any organization that made loans, did appraisals, or served as investment banks or bond rating agencies as banks. Taxpaying commercial banks were never differentiated and never fairly assessed as to their performance leading up to and during the crisis. As Elvis expressed, “The world’s a stage, and each must play a part.” Let’s make sure we understand which players are playing which parts, and keep the actors from morphing further into something they are not. It will remain incumbent upon commercial banks, and the trade associations that represent and advocate on behalf them, to be even more vigilant in their efforts to level the playing field with these nonbank companies. I assure you that the Indiana Bankers Association, American Bankers Association and Independent Community Bankers of America will continue to lead the fight. It is the part that we play on the world stage. FEATURE CEO Ponderings S. Joe DeHaven, Chief Executive Officer, Indiana Bankers Association Congratulations to the following bankers, who have completed the Indiana Bankers Association 2015-16 Branch Management Series. Shown are (left to right): Jennifer Braffet from BloomBank, Bloomfield; Nikki Hollingsworth, North Salem State Bank; Catherine Zeider, Kentland Bank; and Mary Finney, The Napoleon State Bank. IBA Branch Management Series Elvis Presley was an amazing talent. He recorded dozens and dozens of hit songs, starred in numerous movies and broke millions of young girls’ hearts. I have enjoyed Presley’s music my entire life, and my favorite song of his is “Are You Lonesome Tonight?” The words and music were written by others, but Elvis brought this beautiful ballad to life. It describes the heartache of a man who loved and lost – a story as ancient as time. Elvis sings at the beginning and end of the song, but in the middle, he talks. That dramatic talking part has always intrigued me: “I wonder if you’re lonesome tonight. You know someone said that the world’s a stage, and each must play a part.” That “someone” was William Shakespeare, and I have thought a lot about that wisdom over the years. Elvis and the Bard were right: All the world’s a stage, and we each play a part. Sometimes we play parts that are in contradiction to who we really are. I have talked with professional speakers who admit to being shy, yet they shine as outstanding speakers who play the role well. I have known people who play tough negotiators in business, yet their true nature is rather demure. One thing that I have noticed, in myself and others, is that if people play roles long enough, they start to become the people they are playing. Their innate personas change to match the roles. Bankers deal with morphing of competition every day. A few years ago, the buzz phrase for bank competition was “nonbank banks.” Then it was the “shadow banking system,” and now “FinTech.” All of these competitors have traits in common. First, they enjoy significant regulatory and capital advantages over banks. I have always believed that these institutions that act like banks should be subject to the same regulatory requirements and similar capital requirements. Second, many of these institutions are not subject to the same tax burden as banks. Institutions that are acting like banks in the services and products they offer should pay their fair share in taxes. Third, some have quasi-governmental relationships that allow them access to capital markets that banks do not have. That, too, seems wholly unfair. While these firms might argue that banks have an innate advantage in collecting low-cost deposits, they overlook the significant cost in regulatory compliance and deposit insurance associated with those deposits. If these actors want to have access, then they should raise capital and apply for bank charters. When I began my banking career, banks had many products and services that only banks could provide. To-
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