Locality Bank, based in Fort Lauderdale, Fla., was born from conversations between Keith Costello (Co-Founder and CEO) and Drew Saito (Co-Founder and Chief Lending Officer), who met regularly at a nearby CrossFit gym. “We were just catching up after a workout,” Saito recalls. Over a series of casual conversations, the pair saw a market opportunity for a different kind of financial institution.
Overcoming Traditional Banking Challenges with Digital Innovation
A foundational aspect of their shared vision was addressing the challenges posed by the burgeoning Paycheck Protection Program (PPP). They recognized the struggles faced by commercial borrowers from small- and medium-sized businesses with governmental outreach. “Clients needed help, but I didn’t have a bank to assist them,” Costello recalls.
Further underscoring the need for a unique financial institution was the state of the financial services market at the time. The sharp decline in community banks in Florida’s Broward County—from 11 in 2015 to only three by 2020—revealed a significant gap in local banking services. “This consolidation left local businesses underserved,” Costello notes.
This trend, coupled with the pandemic’s impact, exposed the weaknesses in large banks’ relationships with their clients. Saito observed, “A lot of business owners realized their relationship with their bank wasn’t as strong as they thought.”
Understanding that technology would be a key component of their success, Corey LeBlanc—a seasoned professional in financial services digital innovation—became a crucial part of the founding team.
Costello, Saito, and LeBlanc officially launched the bank in 2021.
Rough PPP Process Gives Rise to Locality Bank
How Locality Bank Prioritized Customer Experience
From the outset, the founders prioritized creating a strong, customer-centric culture. “One of the first discussions among the founders centered on defining the bank’s corporate culture,” Saito explains. Unlike acquiring an existing bank with legacy systems, Locality Bank was built from scratch, allowing the founders to intentionally design every aspect of the organization. “We needed to rethink the traditional community bank model,” LeBlanc said, emphasizing the bank’s commitment to crafting a culture aligned with their values.
Start Ups Can Control Their Culture
Locality Bank’s Approach to Integrating Technology and Tradition
Chief Operating Officer and Chief Technology Officer, LeBlanc immediately focused on establishing a robust technological foundation. “We wanted to respond in days and weeks, not months and years,” LeBlanc explains.
However, it was crucial to ensure that digital capabilities did not overshadow the importance of solid customer relationships. “It’s not about technology being the business,” LeBlanc explains. “It’s about having tools that enhance the relationships we build with our customers.”
He identifies a challenge he and his colleagues are currently tackling, the effort behind creating a predictive method of identifying future trends. LeBlanc calls it a means to connect disparate systems to create a “…single pane-of-glass view to predicting what it is that’s coming down the pike.”
Locality Bank’s Strategy for Growth and Expansion
As Locality Bank moved beyond its initial phase, its focus broadened. “We’ve narrowed our strategic initiatives to two main areas: enhancing customer experience through concierge banking and supporting small businesses,” Costello notes.
Saito highlighted the goal of gaining market share in Broward County, “One of the largest and most business-dense regions in the U.S.”
Connecting All of the Customer’s Data
Locality Bank’s Founders Advice for Aspiring Bankers
Reflecting on their journey, the founders shared insights for ambitious bankers, especially those who aspire to start their own financial institutions.
“Reach out,” advises LeBlanc. “We’ve helped a ton of de novo banks. Even when we were going through the process of trying to get our charter, we were helping other banks with policies and procedures. There’s a ton of resources out there. So, tackle it.”
Saito encouraged newcomers to seek mentorship and guidance, “Go find a mentor and be bold.” LeBlanc advised balancing technological advancements with personal connections, “Don’t try to fit in; seek out gaps and innovate boldly.”
Give Your 17-Year-Old Self Advice About A.I.
Costello’s Advice for Would-Be Bankers
Costello wraps up with his own thoughts about breaking into the financial services industry. “To those who are so inclined, go work at a bank. Learn and understand banking.”
“And then start your bank. We need more community banks. I waited too long to start a bank; I didn’t start until I was 50.
“The closer you get to achieving your goals, it’s such an amazing, fun thing to do,” Costello concludes.
Should Someone Start a New Bank?
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Full Video of The Professional Profile of Locality Bank, Fla.
