Twenty-two financial services experts from 13 states gathered at the Borgata Casino Hotel & Spa for the inaugural 2024 NEXT Forum financial services conference in Atlantic City, New Jersey. Sponsored by Travillian and Newcleus, the day’s sessions offered insights into talent management, technology, and investment strategies for the banking industry.
Talent Management Challenges in the Banking Industry
The event opened with a panel focused on talent management, highlighting challenges like Baby Boomer CEOs reluctant to retire and fintechs diverting talent from traditional banks.
Barb MacLean, SVP at Coastal Community Bank, presented her perspective on banks’ reliance on core processors: “When you buy, you essentially become a franchisee of your core processor. Start thinking about [your tech company] like a startup: Use them for what they’re good at and stop using them for everything else.”
The Challenges and Opportunities of M&A in the Banking Industry
A panel of investors turned the focus to commercial real estate (CRE) loans. Sundeep Rana, Managing Principal at Castle Creek Capital, discussed the performance gap between different regions. “Manhattan, New York, is different from Manhattan, Kansas,” he said, underscoring the variation in exposure across the Midwest and large metropolitan areas.
The Myth of the Merger-of-Equals
Merger-of-equals (MOE) activity and broader M&A trends were discussed by Frank Sorrentino, Managing Director at Stephens, Inc. “There’s no such thing as an MOE. Somebody has to win,” he argued, stressing that one party must lead for a merger to succeed. He also remarked that two-thirds of bank mergers fail, but the ones that work “work very, very well.”
Embedded Finance: Risks and Ways to Mitigate Them
Stanley Orszula, partner at Barack Ferrazzano Kirschbaum & Nagelberg LLP, urged community banks to pursue embedded finance with clear objectives. “You have to start at the top,” Orszula advised, encouraging banks to have at least one tech-forward leader on the board. He warned against letting technology become “just a big, black, magic box.”
Scott Hildenbrand on Successful Strategies for Bank CFO’s
Scott Hildenbrand, Head of Depository Fixed Income at Piper Sandler, highlighted the importance of constructive board-management dynamics. “Good CFOs never hear ‘no’ at the board. Great ones always do,” he said, explaining that successful strategies for bank CFO’s often die in board discussions due to a lack of education. He believes disconnects stem from the board level, not within management or treasury teams.
Regulatory Implications of the 2024 Election
Mary Kissel, EVP at Stephens, Inc., framed the upcoming U.S. election as a choice between economic growth and stagnation. She predicted significant regulatory changes depending on the outcome, noting that Republicans may favor lighter regulation and smaller government, while Democrats could pursue stricter policies. Kissel also emphasized the importance of global alliances and U.S. deterrence in maintaining stability.
Headliner, Johnny Allison: From Mobile Homes to Banking Success
The day concluded with an interview of Johnny Allison, Chairman and CEO of Home Bancshares. Allison recounted his entrepreneurial beginnings selling mobile homes at age 13, later transitioning into banking. He shared the challenges of turning around a bank under regulatory scrutiny and the eventual $2.7 billion sale of his bank to First Commercial Corporation. Reflecting on his journey, he said, “I had every dime I could beg, borrow, and steal in that deal, so I intended to fix it—and we did.”
Allison credited his business experience for his success in banking. “No disrespect to bankers, but most of them have never been in that foxhole,” he said. He emphasized the importance of tracking financial performance daily, a lesson learned from his early days in business.
Reflections on the Success of the NEXT Forum
Reflecting on the success of the gathering, Daniel Barbaree, President and CEO of Newcleus LLC. characterized the NEXT Forum as “…a standout event that produced interesting discussion on issues affecting today’s financial services industry.
“But more than that, it was an opportunity for banking professionals of all levels of experience to gather, connect, share, and learn. In addition, the Atlantic City location was both conveniently accessible and beautiful in the post-Labor Day timeframe. I’m eager to join Travillian again next year on this project.”
Travillian Managing Partner Dave Yancoskie said, “Our panelists were insightful and sharp. The discussions they sparked—both as part of the formal Q&As and casually between sessions—were indicative of an engaged and energized audience.”
“We look forward to making the NEXT Forum an annual event.”
The 2025 NEXT Forum
Readers can find extra detail from the 2024 NEXT Forum at Travillian Next. Furthermore, those wanting to ensure they do not miss the 2025 edition can email Travillian’s Head of Banking and Fintech, Brian Love to learn more about next year’s guest list.
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