Sign Louisiana Banking Business Associate Agreement Mobile

Industry sign banking louisiana business associate agreement mobile

well it's a privilege to be here with four diverse and terrific CEOs with a great view of what's going on in banking around the country and for the audience please remember to submit your questions on pigeon-hole towards the end of the discussion we will go to questions that we received from all of you let's start with the macro picture in the economy it's probably worth pausing for a second and going back 10 years in November 2008 the economy had suffered 10 straight months of job losses we are obviously in a very different macroeconomic picture right now Brian is you look at the National picture what do you feel good about and what concerns you well we feel good that the it's clear that US consumers continue to spend at a faster increase this year versus last year in the end of day the US consumer economy drives a lot of what goes on in the US and frankly around the world and so that's good news and and so those wage growth continues to move up maybe not as fast as people might theorize it should have even know those of us employers see growing fast as employment levels are at all-time strength generally job formations still very strong you're seeing you know consumers spend based on that and it's very healthy and then when you go to the commercial side and we all have you know have commercial banking teammates are out there it's very competitive and the companies are very profitable they are benefiting from the tax reform which was needed and they are continuing to they're sort of in a growth mode but they're also just the debate about ones are we late cycle and a cycle is a cycle going to be longer normal this debate occupies people and then you add to it some of the issues around tariffs and trade and stuff like that and so I think there's a nervousness of how that will all shake out in the current statistics numbers delinquencies credit all that stuff you don't you don't see any impact of that but that's the worry of the moment and we'll see how it plays out we're pretty confident our team our research team has the scrolling this year just around 2.93 percent next year about 2.7 percent so it will slow down the question and their projections the question is that still faster and it grew almost any year in the last ten years so that's that's the good news bad news if you want to write the book that's slowing down that's true they project it to happen but you want to write the book as faster than it's been for a while you know that's good too so we feel very good about the near-term macro in the u.s. great Nunda thought why don't we go to you for a view of the regional picture that you see with your footprint and customer base yeah thank you cause like we are in the western part of the country as you know and we are seeing tremendous growth we're helped of course by the tech sector being in headquartered in San Francisco but states like Arizona Washington Utah pork you know all those areas are doing really well so we are pretty bullish also and if you look at the trends if you look at the major KPIs whether its cost of risk whether it is other aspects like those those are all trending really well having said that we are conscious of the fact that it's been a pretty long cycle so there we are expecting a downturn and we are gearing up for it but so far so good tell you from your vantage point anything you done so we covered the mid-atlantic and southeast primarily and I would say overall the economy is good consumer confidence is very high business confidence is very high you know when I traveled around all of our regions and sit down for lunches and talk about how things are going there's an awful lot of optimism they'll talk about some of the stuffs going on in Washington and and they'll kind of complain about it but but when it comes right down to running their business they're still very very optimistic and very confident now I suppose if we keep talking long enough we were talking I was into some type of Correction it seems to be what we do but if you just talk to business people on the street today while they hear that and it worries them a little bit their fundamental businesses are doing very very well Renee yeah very similar I mean both in terms of the consumer and on the commercial side you know I think we survey our commercial customers we've got the highest favorable rating about growth for next year since 2009 so so that all looks really well I think you know we're in the Northeast and we go down to the mid-atlantic and really what we see is sort of a tale of two markets so if you look at the large urban areas like for us would be DC Baltimore and then in real estate here in New York City you know you've got great population growth you've got since the the timeframe that you talked about the last 10 years we've seen about 14% growth and cumulative GDP in Washington for example in Northern Virginia we've seen about the same in terms of job creation but if you flip that and go to some of our rural markets while things are healthy and the customers that are there very healthy they're not seeing the same level of upside so for example over that same period if you look at upstate New York or Pennsylvania would be very similar that might be like three and a half percent growth over that whole whole period in terms of GDP if you look at job creation it's actually negative five in some of these markets and I I mentioned that not not because it's negative about the economy but I think we have to watch sort of as the political environment begins to change who's winning and who's not because those things tend to affect you know the the political mood which of course as we all know affects us today in a big way one thing I'll say about sort of those urban markets if you look at Buffalo the amount of public-private partnership has produced growth that is on par with some of the large cities and it's quite interesting to see actually an area a rural area get this economic rejuvenation so it is possible to just sort of you know get everybody to benefit but but I think there's definitely a Tale of Two Cities going any thoughts on the interest rate environment it into freights I personally think that the rates are going to continue to go up slowly I think they should continue to go up slowly I agree with Chair Powell who says we're not near equilibrium yet although one of the governor's Dever speech yesterday in one of the newer governor's and said we're almost at the neutral point my own experience has been there's probably a hundred and fifty one hundred seventy five basis points to go before interest rates become a determinant factor people talk a lot about interest rates but when business people get up in the morning you know until rates get to a pretty high level that's not their primary consideration in terms of whether they invest money many many other things they have to think about so until you get you know rates up you know and into the five six percent range you know it's not it's not a determinant and so you know we've got a hundred and fifty so basis points to go before I believe it'll even become a factor at all and I think before it becomes a negative determined I think the failure will begin to slow so I think we see you know two or three rating Christie's next year and then a little bit the following year until we begin to kind of you know get to a place where they go to the sidelines I think clearly the near-term movement you know the market are economists and I'm sure all our economists say that okay that the rates will continue to go up because the economy is growing and they're trying to take the accommodation out and get the economy more resting on its own and so I think that's pretty much everybody's base case and they're going off to the right reason and that's what gets lost in the discussion they aren't going up just because people are trying to push them up they're going up for the right reason economy is growing fat I'm not that you take accommodation out but I was thinking about this question a day how old would you have to be to have been working the last time you know the Fed Funds rate was like 4% or 5% and you're starting to find it's 35 or older and so there's a it'll be introduced a this process through our companies when you think there's a lot of people have never seen a Fed fund rate above 3% an entire working career and they're not two years in they're 10 12 years in now and so you start to say do they really understand this is not we've lived through abnormal you're going back to more what you'd hope would be normal where those economy is strong enough that if feds fund right the Deuter rate above three percent three and a half percent would be you know achievable because that means we got enough growth to have it there and I think it's just it's hard to get people to think that's question through which is these are the lowest nominal rates you can't punch them into the Blue Book terminal and get them to come out I mean you have to go back to times when the data wasn't kept to find them sustainably at this level and people are act like well my guys are going up from one to two you say it's one to two percent let's think about that it's a great point so we may need a generational reset of expectations on what is a normal rate environment and speaking of expectations one of the things we see is customer expectations continue to rise and for banks customer expectations are increasingly being set by their experiences not just within banking but beyond banking none of that maybe we'll start with you on this one how do you see those expectations rising and and what are you doing to respond yeah that's a great question so customer expectations are definitely rising and they are looking for immediacy and convenience right now in fact we and and every banker field says transactions are morphing from branches and going to mobile every day and if you look at it you know customers want immediacy and convenience because they are getting that from the right share companies and Amazon's of the world you know five seven years ago we couldn't imagine ordering something and getting that the same day from Amazon so as consumers they're saying why can't we send and receive money immediately what's wrong with that so I think the whole paradigm has changed and I believe that we bankers have to change accordingly and I'm very passionate about customer experience I'm sure the others are too and for us we try to put the customer at the center of it all and we look at it and we try to respond in many different varied areas but I'll talk about three today the one the first one is investing in design you know historically digital was all about functionalities content who had better features well those are commodities today today it's all about the experience the battlefield has gotten to design centric organization design centric content and that is where customers are being wild and one so design then becomes extremely important because that's what customers look at is less friction and ease of use and onboarding and so on support connected to that connected to design is the need for the right people talent because this is a new breed of thinking Brian was just talking about you know us 35 plus or more we are the ones that remember what what it used to be right so I'm not sure I'm the right person to be designing those you know interactive sessions that we want with our customers so it's very important then to hire the right breed of individuals to hire folks specially Mennella Millennials who can come in and work those environments right so workforce and hiring the right people making sure we empower them we inspire them we retain them becomes extremely important you know they talk about culture attracts people and they talk about leaders retain people and the third area I would say and probably the most important is where we get feedback directly from the customer and what do we do about it how do we change our future functionality product design product products pricing all of that based on customer experience and the feedback we get from them I have recently appointed an individual a lady that reports to me directly and takes care of the whole enterprise payment experience or enterprise customer experience and that has made a huge huge difference because they understand how important it is and she while she's not responsible for any one area she is responsible for the whole enterprise so brings about a huge changes and you know latest JD Power scores had us as number one in and number four in the country so happy about that Kelly so when you're thinking about a lot of change I think it's very important to establish perspective you mentioned paradigm so if you go back over fifty five sixty years in this country there's really been only one big time paradigm shift and there was coming out of World War two there was a real demand in retail America for more time convenience if you think about prior to that all retail America was in right downtown you had the hardware store the post office in the bank and and there was no parking and there was nothing it was just is what it was but all of a sudden it started demanding more convenience of time so retail America invented suburban shopping centers banks went right along we said we'll build a building out there we'll give you plenty of parking in fact we will throw in a drive-in window in case it's raining you want to come inside and the public said well that's pretty good but on Friday night you know we might want to get some money at eight o'clock so we said fine we'll put an ATM in the wall they said well that's pretty neat but we don't want to carry all this cash that will give you a debit card and they said we want to check our bounces at home in the bedroom so we'll give you on one bank and so we've been through all these changes but it's all about one simple paradigm convenience and so it's important to recognize what has changed and what is not now until very recently what did not change was the trusting relationship between the banker and the client so as long as you could reasonably meet the technological convenience requirements and you had a really good trusting relationship you want the game now what's happened in the last two or three years and this is to the credit of Brian and some of the very largest other banks there's been a shift in the definition of quality at least in my view historically quality was defined as technology in the back room and interpersonal relationships in the front room about three years ago this shifted and now quality is defined as a function of technology in the back room of course but more importantly to the client technology front room and I still want that trusting relationship also so it's gotten more complex so now what you have to have is you know all of the technological requirements in the back room to be fish it in the front room to be at the time demand but you still have to have that interface when the client demands it the final thing I'll say and this is just the way our frame it my mind over the last few years there's been this acceleration of this this demand for convenience and it's what I call demand for real-time satisfaction clients want it right here right now and they typically hold up their there from their mobile phone I want it right here right now now we're all scrambling really really fast to accommodate that and doing a really good job of it we can talk about later but some impending issues around that or security issues but this is all about changing into paradigm with regard to convenience and it's important to remember that so we don't throw the baby out with the bathwater thanks Kelly Renee what part of the technology paradigm shifting is also the potential for banks to use the power of data to engage in personalized customer experiences any thoughts on that and the and the role that's playing in in meeting rising customer expectation yeah I mean let me just sort of start off where I love Kelly's explanation of what the banking industry has gone through because we've done a lot of innovation which is generated from within and you know I think a lot of talk about banks sort of being behind catching up was a matter of circ mstance we were in the crisis we were building building risk systems we were doing all those things right at the time where the confluence of you know six decades of the computer revolution microprocessor for generations broadband starting to expand it it was a point where not only were we occupied with other things but we had a reputational issue and those two things combined were a big deal but when I look at it I think we're incredibly positioned so when you kind of get down to this idea of you know what's the importance of data what's the importance of technology I think the better question kind of goes to where anindita was which is in other industries they talk about those two things they talk about technologists and data scientists and manoa ology there is no data without those two those two individuals on your team and what I think is gonna be most instructive is that we're gonna have to rethink the way we we go about hiring talent and if you go all the way back to the crisis why that was so important from a reputational standpoint it's not only because we had a better reputation with our customers but with talent and my my sense is that we're gonna have to do a much better job so if you look at our shop we have twelve hundred and fifty roughly technologists and as we look out to 2025 we will need to almost double that when you look at technologists data scientists customer experience individuals so you can figure pitch yourself trying to tackle a customer problem and you say well this is great you know at M&T we've got 112 data scientists well the data scientists aren't any good without the other other other folks and and if you think about it for many many many years our entire institutions have been set up to develop an issue products as opposed to solve customer needs so as you begin to bring in the new talent make it attractive you also have to figure out how to reform the way in which our our back office processes work the way in which we approach innovation and collaboration and so you know data is central to it but if you actually start to look at those teams and the teams are going to be what's going to differentiate you it's gonna be what allows you to get to the next innovation you know they're just one part of the puzzle in my mind so really really really important we have a history of data being needing a large amounts of investment to go from where we were to where we are but to me it's really about the teams and the talent Brian we've heard several mentions already of the need for real-time satisfaction real-time experiences the industry is obviously in the middle of much investment and activity on real-time payments talk a little bit about innovation and real-time payments as you see that evolving well I think you know Jim and the team have been driving this and we're operating and we it's up it's not a theory it's not a question that's up and operating and stuff's going back and forth and we're getting more and more people enabled on it but the question is why do you need it and what you really need is you need a cash equivalent that has a finality of cash the convenience of cash and has the real Tunnock's monetary exchange and the people know they're paying and they're know they're getting something and that's a key element to it to get the system to run as well and also have it available in a bit less nature so I think I think we think this is a real next-generation for the convenience so that person can basically basically it's you know if you combine all this and think about it it's redefining to Kelly's point the checking account to the debit card of the ATM to get cash up now you just find another way to access your real account and really pay for stuff where a person can get the value and know that they're getting the value instantaneously and paying it back the problems all the other clearance systems we had have been a delay so somebody had to trust somebody in there it comes in the other mastercard visa system and guarantees this allows the micro payments take place and so you can't use any one of these but the security of it with the tokenization and all the things again on the convenience of it with the wallets that we've all operationalized the real-time nature of it and the movement to be to be and a be at a p2p and a zell and all the things all this works together against a convenience of the customer and frankly it could security convenes with the customer and then frankly on the other side an ability for us to actually move cash you know in the end a day you know we still are spitting out a half a 250 million dollars over the teller line every day and 200 million dollars out of ATMs every day in a quota cashless society close we're not we're so far away from this you know in yeah the transaction volumes going down but the dollars are still going up and so you know it so this is for all of us it's it's it means the customer but for us it's cleaning up the rails and making them operate much more effectively and don't forget that definitiveness of I bought a new soul will help us get deal with a lot of these issues go on we were caught in the middle arbitrating between two people who had an exchange that because the mechanisms are asking us to arbitrate it and we in a day we don't need to we shouldn't be doing that that's not a role and I think so I have high hopes for it we're seeing it operate and Jim and Russ in a team you know we're able to collect it and this is something we have to do as an industry and it's gonna be available to everybody it has to have a network effect like zel like this like a doe everybody has to get it and by the way we have to do for free for the customer so there's no idea we're gonna charge for anything it's just in the ideas we have to then make it a core part it's the check-in counter future I think that's those of a certain accession I know for three years ago you know somebody said I forget it was it may have been maybe Bob or somebody his predecessor said this is just a checking account isn't it and we said yeah and that's they said I got let's go and that was it three years later we're here I think wonderful let's broaden the aperture from real-time payments and payments innovation to innovation more broadly there is a lot of noise these days we'd argue more noise than signal on fintechs we estimate that in the last five years nearly sixty billion dollars in investment has flowed into in defend tax at the same time we see many of them struggling with challenges around the cost of customer acquisition without existing brands and distribution and those with more balance sheet intensive models with the cost of capital Rene maybe I'll start with you first on this one as you think about fintechs do you see them as competitors partners neither or both I think my short answer is both I think in one hand you know the banking industry is well-established we've got tremendous amounts of scale significant resources and we're trying to figure out how to get to the convenience question and to and to digitize you know our way of doing business on the flip side the fintechs have mastered that and have one key ingredient which is talent and skill back to your earlier point back to the earlier point and but they've yet to prove whether they can scale so in my mind that's a bit of a marriage made in heaven possibly because I think if you were to take a closed loop on it and we in the industry were said that we had the best talent and therefore we're going to produce all the ideas I think that would sort of be a death knell so part of our job is to sort of open ourselves up in a way where we can share some of the mutual benefit to make sure that the industry survives having said that if I kind of bring myself back into the industry I I do believe you know we all spend the same statistics we probably spend eight to ten percent of our revenue on technology we spend you know 20 to 40% of that on innovation and new products and services for a bank our size trying to spending your time and spending those dollars to keep up it's not a good idea you really have to we are our job we really have to figure out how to differentiate ourselves and what that means is that is that we can't afford to actually have large portions of our talent be outsourced because as we come up with those ideas we have to do the best we can actually retain them in that same talent pool so that's one of the reasons why I look at it as both we've got to open ourselves up to it if you do that you'll also get the benefit of being an attractive place an open place to be able to to work but I think internally if we're gonna see many more of the things that we do outside actually come inside Brian part of the incumbent Bank responds to the fan tax has been technology innovation of your own earlier this year be a launch darica the chatbot and more generally in banking and beyond there's lots of talk about artificial intelligence and back to Kelly's point maybe that's a big part of bringing technology into the front room not just the back room what do you see as the future of AI particularly in banking and what are the kinds of experiences could empower but I think we are having this discussion management team yesterday the word AI is you know you can make it this broader this narrow depending how you do it but it to me there's four or five technology things that we're trying to harness in a company like all of us are which is the capabilities a voice recognition has changed dramatically the capabilities of data storage and retrieval to be able to store the data and access it the ability to do the calculations on it but most people refers artificial intelligence and and then that's F the second set which is predictions and in the second set which is machine learning on the machine learning so but most importantly is a network to actually distributive both wired network and wireless because the other day something like Erica does not work if your network so slow and your latency so long so you have to have all those things line up and then there's the customer base application both internal go to them back to there a nice point about data scientists if if I can articulate what I'm asking for I want to know who had green socks and came into the financial center on Thursday and that can go all the way through and it query the machine and come back I can save a lot of people and that's not a very intellectual content to it but it is a data inquiry it is it at a data scientist will have to produce inquiry and stuff like that so that you can also have tremendous internal internal capacity generation weather State and spreading that we've used robotics on whether it's cut off from memory on a preparation whether it's predictive modeling for other types that where we send the Salesforce and stuff like that but it all comes back from harnessing I think all five of those technology platform type plays and getting them going and so we're learning a lot from the you know the voice recognition artificial intelligence because you can text in there because not necessarily you can do it either way but we're learning a lot we're learning a lot about the customer were feeding them insights about their accounts and you know it's way out there in terms of activities but there's three or four like four million people using it and we're learning from them going to Rene's point about experimentation and the people using that on a far edge of financial services sort of artificial intelligence development what it all means but I think those four or five trends in those four five aspects of technology are compounding to to change the nature everything we do both internally and externally and then if we put it against Steve what the cut you'll go and indeed is point earlier about you know the ability elec so series etc you have to keep up with the Joneses not renamed but all the Joneses so to speak and that you need to keep up and you need to make sure that you know if people gonna start talking to this phone and activating or talking and being able to compel the computing power of a supercomputer capacity in the direction you know and that's what they can expect out of you because they can do that was with some other faster the life at warp speed and instantaneous and answer any question we're gonna have to do that financial services so that's where we're you know so we're just we're pushing this out there we're proud of it it's working but we think we're still a long way to go to learn from it but in the end of the day and I think all of us are learning from this it's so it's four or five compounding effects those technology platforms it's not artificial intelligence on its own it's not data it's not where networks it's not voice recognition it's not machine learnings give you all those things and then how do you use them to enhance the customer experience and employee experience it's gonna be a trick and and you know we're taking a bold approach in some cases a lot of incremental you know just speed things up make things a little bit better and then figure out work those makes you know and you know to me this is one of the reasons I'm the most optimistic about our industry than I have been in my entire career for for much of my career I feel like we have been on defense you know if you go back over thirty forty years we saw ourselves the banking industry substantially lose control of the lending business you know when I first started the banks in this country made about eighty percent of all the loans before we went into crisis to talk down to thirty we saw ourselves getting substantially disintermediated by the money market funds that took huge amounts our deposits out because we ended up having to bail them out and in the crisis and we were on the cusp of losing the payment system but with their great word that Jim and others have been done recently I think we're reclaiming ownership of the payment system which is really really huge but there's a frontier that relates to this whole area of information and a that is extremely exciting and that is really we are all in the business of information management we know more about our clients than anybody Amazon there's a lot we know a lot more and so if we can harness AI and other forms of machine learning and figure out ways to offer solutions not just around the speed of convenience which I alluded to but around the quality of that movement of activity which we can do the tools are there today the need is there today there's nobody else that is well-suited to health at as well as us now if we wait a long time somebody will figure it out Amazon or somebody will figure it out but there for the first time to me there's a huge new opportunity for us as an industry to forge a new primary anchor point with a client and that is about helping them manage the information they need in their life to live comfortably conveniently with security nobody can do that why would you and so the thing about that and that's just playing off of what Kelly said the insights out Erika telling people they're spending too much you're spending too that's just a real-time budget management exercise and so if you go back generations ago that have been balancing your checkbook venture to ask whose balance her checkbook recently in this crowd even a bunch of bankers here I guarantee none of them have actually done it you know and so the point is is just it helps people manage real time that isn't entirely compelling and we're not taking information and trying to sell to somebody or use it it's there information about them that we can analyze and compare them to people who might look like them that they don't know who they are is say you're spending more than the people in your cohort just like you know MyFitnessPal will tell you have more weight than people in your cohort whatever in that that real-time intimacy that the technology enables you to have in the insight you have from the data and they be able to use it for the customer I think I agree with Kelly gives you extremely optimistic view of where this goes of the next decade for our industry as opposed to you know being product suppliers along various dimensions that is you know gone the ast you all touched on the rise of technologies and the deployment of technology platforms when we look at the technology sector as an example we see the rise of real large-scale players and and outside the US if we take China as an example even more stunning right customer bases of eight hundred nine hundred million and that scale story seems to be playing out across different industries so as you step back and think about it for banking maybe we'll do a quick CEO around Robin here starting with you Brian what do you see as the role of scale and banking and and the implications for for banks of different sizes I think you know I think it's it's important because it gives us a chance to offer a convenience that the customer gets a benefit of and I think it's enough and appropriate for this room in this these groups whether it's BPI and the Clearing House there's different scales of scale that we haven't bankin America on our own there's scale that we share with the industry as an industry real time as a case zel you pick that and so we need to use scale for the industry's benefit and an individual's benefit what we're doing is some of the cybersecurity work with bits what we're doing so you go down all these things and so it is critically important and I think the thing is the actual institutions have to drive the scale equation with all credit to the great service providers over time to provide us weather you know in the in the back-office stuff because right now the aggregate of these institutions just in the Clearinghouse is so much bigger than any sort of party supplier to them that we we have to think about how we help those people either get up to speed or build what we need is utility and that's one of the fun things I think we've we've all gotten into over the last you know five seven years with the wsl transformation real-time transformation tokenization is how can we bring the scale is important but how can we bring scale together as a communal group and then make it available the entire industry really going back to thing that we have this unique view of the right thing to do with customer convenience security safety trust that I think will be better for the customers we firmly believe that but sometimes we have to own that scale and sometimes we have to borrow that scale sometimes you have to create that scale and I think that's the interesting thing and the interesting is well we think of our banks as big banks using your China you got remember that we're the second largest market cap in the world we're the fifth largest earner in banking JP is number one in market cap one number two you got the four Chinese banks are bigger than he is and earn more than all of a survey goes to aunt and alibaba's to those banks are huge banks to us so there's a competitive set that's going to be interesting over the next couple decades with what happens with those large you know it's a ten trillion dollar institution with one major shareholder it'll be interesting to see how that plays out so we got to have some scale ready to go thanks it's a great question I agree with Brian in terms of the creating the scale and how we as industry partners can get together to do that earlier today I heard from someone that when asked who's your bank they said venmo so talk about the FinTech being a competitor but then talk about us coming together and coming up with a with a solution and reclaiming that space as Kelly said with self but when it's so absolutely agree on scale can be created as we partner together with under the leadership of TCH but then we add Bank of the West also enjoy another type of scale we are a part of affiliate of the fifth largest publicly traded bank in the world not those Chinese banks are of course owned by the government and we have the front row seat as a result of watching a lot of things that are going on innovation risks cyber different ways of management so absolutely scale matters and that can be either created or borrowed in our case we borrow it to so still is a big deal I think it is changing pretty quickly in terms of the backroom skill technology over the last few years and Brian alluded to this has there been some positive changes in terms to smaller banks being able to access skill through plug-and-play types of requirements through shared utilities through industry a collaboration and by the way I want to congratulate Brian because you all wouldn't have already known this but he has been a real leader in terms of us working together as an industry in terms of you know finding ways to economize and make ourselves more effective so thank you Brian for that there's a whole nother area though we wrote a scale that is something I think we all had to be concerned about and this is a pretty recent thing too and that is today scale with regard to marketing is a whopping big deal as I said before and you know that their definition of quality's change their quality is now defined by the client as just a personal relationship but a really big issue in terms of technology but it's also changed in terms of their perceptions and perceptions or substantially managed by information that they they're they perceive in the marketplace and so and I give them credit but the largest things today are putting billions and billions of dollars very effectively into marketing and it is swaying opinion and it is swaying decisions swaying their behavior and so one of the challenges that all of us and I would say our company our size which is not that large but we are the eighth largest u.s. bank meeting the challenges of still recorded marketing is a whopping big issue so I think we can find ways on the back room through shared utilities and plug and plays and things like that that mitigates somewhat the effective skill but this marketing skill issue something every one of us needs to find a way to tackle and my humble opinion is the answer to that is differentiation thanks Kelly so yeah I mean scale has always been key we're in a commodity business where financial intermediary and if you can't be extremely efficient you know your chances are surviving for a very long time I think our loan but there's been lots of folks in the industry and lots of institutions that have had actual great efficiency but very very effective but the whole game didn't work out and in my mind that is because we're at risk managers and we can think about risk managers in a very very traditional sense or we can maybe go to some of the topics that we've all been working on which is you know one of our biggest risks and when you start thinking about things like cyber and the fact that you know for a little M&T we're not just up there competing and worrying about risk in Buffalo we actually now are part of the system and have to worry about that global risk and I love the description that Brian had because you know we're the small fish when you when you bring it up a level to in terms of Nations and the collaboration is so important to be able to figure that out when you think about the work that we've all done on bsa/aml I would assume for all of us it's been extremely clear as we've spent millions and millions and millions of dollars on our own individual systems that when we leave work and we go to dinner with the individual who runs the community bank you can't help but look at that individual and say well jeez now they're just going to come to your place right so this this issue a bigger issue of using scale around Brian's topic for the US and for our system as a whole I think is going to be the most critical issue out there collaboration with the government is going to be essential as well it's a great observation on defense because we've spent a lot of time talking about offense in a sense but I think we all in this room appreciate that fundamentally banking is the people and technology enabled risk management business Kelly any more thoughts building on Renee's points about cyber and fraud and what the industry is doing to manage for sure we should never have a discussion of two or more people without talking about cybersecurity many of you have heard me talk over the years about the biggest race we face you heard me several years talk about EMP electromagnetic pulse it distills a singular most important risk we all face but it is the probability is lower I will tell you now that the number one risk we all face in cybersecurity this interesting over the years we've all learned as bankers that credit is the only thing you can really get you and that's kind of true on our long-term basis but you can't you got to try really hard to mess up a bank real fast with credit you can do it over a period of time any one of us can lose our institutions overnight with cyber security risk and collectively we can lose the industry and we can lose the country over cyber security risk now I don't want to frighten of those their cameras back there or recording this that I'm gonna frighten the American public today that I believe we're getting ready to have a major cyber attack and and put the country at risk I do not because there has been dramatic improvement in terms of cyber security led by the banking industry over the last 10 years our industry has moved to the forefront we are the leading sector with regard to cyber security risk management and we have mitigated the risk dramatically but at the same time I think you all know the the the offense has increased dramatically and continues to increase dramatically every single day and so we have to be sure that we are individually and collectively investing substantially financially and human resources and especially working together collectively to make sure our our mitigation risk management defense mechanisms are the best they can possibly be we can do it we are doing it but we must remain absolutely committed to that on a consistent daily basis our applaud TCH and VPI are bits committee is doing a fantastic job Chris trainees in the room but please in your institution because we all then is together this is not competitive if you don't have it raised to the highest level please consider doing that and then anything you can see that you can do working together with the industry give it your top priority because that's the one risk that we cannot allow to be taken for granted Thank You Kelly we have several questions from the audience so perhaps just to close out the discussion here and perhaps looking forward on an optimistic note I'll ask each CEO to share either one big opportunity for banking over the next decade or one prediction for banking in 2025 what might this panel in 2025 we talking about that we're not talking about now none of that I'll start with you okay well I think the opportunity for banks is that we should be a lot more involved in corporate social responsibility I think we owe it to our customers and we owe it to our employees to be much more engaged in sustainable finance we recently have done that and talk about distinct marketing advantage and that definitely is providing as that in terms of prediction we'll all be a little flippant and I would say that I hope we bankers take our heads out of the clouds and actually invest our businesses in the cloud excellent Thank You Kelly so I I think the greatest opportunity for our industry is to help the world understand who we are and what we do we do really good work and especially the last 10 years it has not been very well right the fact of the contrary the truth is we have been beaten down and been put in a light that would suggest that we are not a real positive contributor to the economy the furthest is from that is the truth we help grow the economy we create jobs we support the educational systems with the first in line for the March of Dimes March every year we do really good work we support the communities and yet we need to do a better job of letting the public know the good work that we do and one thing I would suggest you think about I believe the way to do that is to raised a question to a higher level and the higher level is to think in your institution and help the world think about why are we here why over here there's a great book if you're not read it called man's search for meaning written by Viktor Frankl Franco survived the Holocaust spent three years on ostrich wrote this book about his experience and in this book Frankel says if you know your why you can endure anyhow in other words if you clear about your purpose in life you can figure out how to deal with the obstacles we have a really important why we have a really important purpose individually and collectively if we can raise that to the public level let people low let the world know let Congress know why we are here in five years from now ten years from now we'll be operating in an entirely different level the world will understand the powerfully important role that bankers and the banking industry play Thank You Kelly her name I hate to go with the flow but it's three things reputation reputation and reputation I agree with everything that indeed Inc and Kelly said I think the thing that makes me the most encouraging encouraged is the level of collaboration that I that that I've witnessed since about 2010 much much higher than it's ever been and somehow I think if if we can begin to look at each other in a different light you know we're really competitive we do that really really well it's been a consolidating industry it's jewelry we wake up every day to do that but part of the whole process of getting yourself in that space of building a reputation and working with your community is sort of surrounding your entire life and day with that same type of behavior so when I look at the industry I think there are a lot of common threats that have been pulling us together and I think there's a lot to learn from doing more in that space thank you really Brian well in 2025 maybe they'll be in the sort of the 40th year of working in this industry around this industry and you'll still be consulting firms telling me that financial centers won't exist 10 years and they will still exist because in a day it's back to really what Kelly saw there we need high-tech and high-touch in the way that we live the why is actually through that personal reaction now we're finding better ways to make that is live in the digital spaces and India was talking about as we are in a personal and that face to face face but in a day we we come to life to serve people through the people and you know so that that's that won't change but the reality is it will be different there'll be more technology customers behave in different ways we'll figure it out but the end of day it'll still be back to that question as optimistic which is the thing that we have to take care of and nourish is the fact that customers need us to help them do to achieve what they want in our life and if we don't forget that will be fun thank you all for that inspirational round robin I I do have a few questions from the audience Brian will stay with you for the most popular question you spoke eloquently about the opportunity for real-time payments we'd underlined that by noting that the US the CR will write more checks than the next 50 countries combined the audience question is what is the biggest impediment that you see to the adoption of real-time payments here in the US it all comes down to behavior change you know it just it's literally getting people to change and that takes time so you got to be invested of the tipping point so you know just if you analogize it to something like deposits you know we took you deposit an ATM when I was in high school you come out you know forty years later around numbers and we have half the checks and ATMs 25% to the mobile phone the 25% mobile phone came up in six years so the pace had changed but it still takes that change to happen it's still only 25 percent and still 25 percent go through the branches so I think the real time will have the same analysis thing so we're seeing zell take off and grow a hundred percent a year and becoming interesting numbers it's still when you sorted out as a percentage of all the payments made it's low so we have to be patient real time it'll just take getting people to understand how it will work for them and how it will help them in terms of day to day life in terms of paying people and the more the itinerant payment and you know the sort of it that's the the idea is it can be at any amount any time any amount initiated you can make it a push all these things that we've been theorizing about as a way that you compare that gym membership that they actually have to check to make sure it still want to pay there it is yet when you're standing in front of a person you can you can give it to them so I think it's got great but I think that the issue is can we get customers understand you ultimately how to use it to their thing and that's going to get into the receiver side was it's a person or merchants in a sending side whether the consumer out of their account or business out account coming together but it's always customer adoption we just have to be patient to let it build relentlessly business-to-business it'll happen instantaneously because anything speeds up how fast I get my money is easy to explain to people consumer is just a heart it's you know 300 million people out there we got to get to understand the change and it's gonna take some time thanks Brian Kelly and Rene let me go to you on this next question is the growing consumer sensitivity to privacy threat or an opportunity for banking oh it's a huge opportunity I am so excited that the consumer is getting concerned about privacy I think for a number of years we were heading down a dangerous path of putting everything there is in the world to know about each other on every web page we can possibly put and I think the consumer has got to get a bit more savvy about the risk with regard to putting information out in the public space we can do the best we can do in terms of managing that privacy but ultimately is the responsibility of the consumer we have to do a better job helping them understand the wrist and then what we can do to help mitigate the risk but didn't help them share with us the responsibility of providing that kind of information ultimately we want there you know make the world a better place to live we want people to be able to be as open as they want to be and that's a healthy thing from the overall spirit of the culture or the country culture of the world but it can lose itself just like that if we end up with so much privacy concerns the privacy risk and actual profit privacy infractions that people go inward and we go the other way a hundred eight any reason people won't share anything with anybody about you know anything that's going on so it's a great opportunity for us to help educate and to continue to build the security measures into our system and I'm proud of our industry I think we're on the lead in terms of providing that type of forward-looking risk management I agree it's a huge advantage and I think the there's a you know we're right at a turning point just looking at the events that have happened around Facebook and some of the other providers of information they couldn't be clearer and broader examples right that are educating the entire public of the concern and then I think what what makes me optimistic about it for the banking industry is that I mean all we are is our cultures and the cultures that we've built and we've been built based on being very attentive to risk and some of the new cultures that are out there have been very attentive to a very good thing which is transparency and openness but have not exercised the muscles around around the risk so that shift as the customer becomes more and more aware there's several levels of benefits to us but but one is we understand how to help them and the more we can find ways to help our customers you know the better our reputation is and the better our purpose is Renee I'll stay with you on this next one and and then none that I would love to get your thoughts on this as well Renee you spoke quite pointedly earlier about a tale of two regions even within your footprint a question from the audience is what financial technologies or innovations are you thinking about that will better serve the under man yeah III think it begins I think one of the most instructive things if you think about what we talked about today is if you look at what's happening at places like square where you know we have presumed there are certain segments that we just can't Bank and in stumbling through a merchant exercise they've realized but by looking at data there are actually different ways that are non-traditional ways to begin to to begin to think about getting a getting paid back and banking individuals in that space having said that obviously it's a big threat but in the sense as long as we're able to learn from that and willing to actually do more experiments down that path I think there's a number of things that we can actually do that that we're actually looking on the outside and learning from I for one I can't really get into the whole thing but I had an experience where I was educated in a space and then I started walking around my community and looking at people who were who were underbanked using using these services and to me it made me feel like we were missing the boat we have a particular neighborhood we define it by a zip code in upstate New York and because of those trends we sent on a number of individuals from our our consumer bank and it was incredible to go into that community and we started with well what do you think of M&T Bank and they said well you know the reputation was fantastic and then we started taking about our products and services well we don't really use them because you don't really offer anything for us but your reputation has and it's an eye-opener because you can't get an answer like that unless you start diving deeper into those communities and solving the problem so I think we've got a lot of Technol technological innovation that's sort of leading the way there's clearly an answer here and I my sense is that we're gonna see more on that front you know in the next year two years none of anything you're not yeah I would say that it's a huge opportunity for us you know at any given point in time a third of the US population is on back and if you talk to them most of them will say they were intimidated by banks so we have created that barrier somehow somewhere somehow and I would say very proud of Bank of the West years ago much before I got here we actually got into a partnership with the community organization called Operation Hope and we innovated it we we started it and essentially would behave as individuals from the operation hope organization embedded within our branches so there are services that we cannot offer or if we can give need to provide them counsel Operation Hope takes those from others so I know that has spread quite a bit but very very proud the fact that Bank the West fought to offer that first and really it is its outreach and its technology with a mobile phone in the hands and the palms of practically every adult in this country banking services are just a few clicks away and it's a question of having the right product set having the right fee structure having the right outreach having the right education to bring them in the fold of banking I mean banking today it's still a privilege it should become a right well said we're almost out of time Brian we opened with a macro question so why don't we closed with a macro question to you question from the audience this morning sessions talked about the beneficial impact of technology in the financial sector and the overall economy however productivity has remained low why is this and how can it be improved there was a wise person that said to me who knows far more about this and taught me the people that we talk about today knowing about it said we'll figure it out in 25 years and you're the measures and stuff change and so it I think it's a real struggle to figure out what how to define productivity in the contract of what's going on in society and so in all seriousness and this was this was a person who knows far more than probably everybody the room combined on economics and things like that and so I think that that's really we got to be careful about looking for micro movements the reality is is we have a societal duty figure out the question of the impact of technology overtime on labor and and and people and house enhance their life and at the same time how do we make sure we mitigate the effects of it and we spent a lot of time in a company thinking about how we change a company over time and how we plan for the future and how we try to mitigate those impacts but I you know I think the connector that productivity conundrum from a monetary policy current economic thing I just I don't personally when I have people describe crisis but that isn't how you measure what really goes on anymore you know and so they think it'll take a while to figure out the broader the different measurement systems just like it probably took a while before if you go to any company they are doing more with less resources that is across the board those are real companies talking to you so I can't quite figure out the productivity debate when you go to every company they say no we have 10 people doing what 12 Pete we used to do we have in some of its robotics and some of its and I'm not I'm not sure the calculations work as well but the broader societal question is long term from 50 years ago today there's twice as many people work in a company in the country there's it's down about 40 percent of manufacturing jobs we had 75 80 million jobs came in all around services so in that area of lost manufacturing we create 75 million more people working across 40 years just noodle on that question and so you know so that the idea is this will this may take care of itself we have to help we have to help seed it and coddle to make sure it happens and quit getting worried about trying to debate whether we have productivity of 0.1 or 0.2 quoted a quarter the questions more long-term how do we deal with the impacts to ecology on labor on people you know thank you Brian and thank you none to thought Kelly and Renea for a wonderfully candid provocative and inspiring hour [Applause]