GOSS: Community banks are still the gold standard of security and trust in local markets. However, for many customers nowadays, security of non-bank technology platforms is assumed (right or wrong), and features like ease of access to funds, investment options, connectivity to other applications and analysis of data are becoming increasingly important. Nimble banks will be better positioned to keep and grow the customer relationships of the future. For example, community banks have an advantage over larger institutions in the ability to be agile in decision-making. Banks can exploit this advantage by developing the ability to execute an objective-based, repeatable process for evaluating and adopting any new product or service. Having a systematic process is likely more important than adopting any one innovation or technology. Further, the unique understanding community banks have of their local markets can provide opportunities to build niche products and services tailored to particular challenges their customers face. The technologies and innovations then become tools to support those core niches and specialties rather than the ends themselves. Q. Given the current economic climate, how are you positioning your bank for sustainable growth while managing potential risks and uncertainties? BOYAN: In any economic climate, including today’s, Unity Bank remains committed to its core principles. We aim for mid-to-high single-digit growth annually. How do we achieve this? Primarily though our customer-centric focus. We listen to our customers and provide the products and services they truly desire. Our commitment to exceptional customer experience sets us apart. Secondly, we have financial discipline, in both pricing our products and services and in managing our expenses. We maintain pricing rigor, ensuring fairness and sustainability. And we are mindful in controlling our expenses. We maintain a steady resilience. We avoid impulsive decisions during lean years and resist overindulgence in good times. This steadfast approach has served us well across various market cycles. While it may seem unexciting to some, our consistency is our strength. GOSS: In my opinion, there is no silver bullet. However, creating optionality in the business model is key to facing any economic climate with confidence. For example, locking down risk in select areas can serve as the basis for and enable future growth in other areas of less certainty. Every market has unique tailwinds and headwinds. And each market will be impacted by the larger macroeconomic environment to a different extent. Knowing your options for leaning into the tailwinds in advance (e.g., new or growing industries, demographic changes) and protecting against headwinds (e.g., balance sheet management, compliance risk management, capital planning, credit risk mitigation) can help ensure performance in any part of the cycle. Engaging the right partners and advisors to assist in these efforts is key as well. Q. How do you envision the role of traditional banking evolving in response to shifting customer behaviors, technological advancements, and macroeconomic trends? BOYAN: Banks need to continue to evolve and remain relevant to their customers. This has been true throughout the history of the banking industry. Traditional banks must adapt to changing customer preferences by embracing digital channels and enhancing user experiences. Our banks also have access IN MY VIEW, TRADITIONAL COMMUNITY BANKING IS AND WILL REMAIN AN ESSENTIAL PILLAR OF OUR FINANCIAL ECOSYSTEM. NO OTHER MODEL HAS BEEN AS SUCCESSFUL AT EFFICIENTLY ALLOCATING CAPITAL TO BUSINESSES AND INDIVIDUALS AT THE SOURCE WHILE ALSO SUPPORTING THEIR COMMUNITIES THROUGH JOBS, LOCAL SPONSORSHIPS AND OTHER EFFORTS. J JEREMY GOSS, PARTNER, FORVIS to incredible amounts of data that go largely unutilized. Leveraging data analytics and artificial intelligence can enhance operational efficiency, risk management and personalized services. In summary, traditional banks should proactively embrace digital transformation, prioritize customer experiences, and remain agile in a rapidly evolving financial landscape. By doing so, they can continue to serve their communities effectively while staying competitive and relevant. GOSS: In my view, traditional community banking is and will remain an essential pillar of our financial ecosystem. No other model has been as successful at efficiently allocating capital to businesses and individuals at the source while also supporting their communities through jobs, local sponsorships and other efforts. This level of granular involvement means much of the information necessary to adapt to changing consumer behavior and technology likely already exists collectively within the bank. Where gaps exist, trusted advisors can offer unique perspectives from having worked through similar challenges across the industry. The ability to tap, organize and turn that knowledge into actionable strategies is where the rubber meets the road. The most successful banks of the future may be those with a clear vision (i.e., strategy/ purpose) that are able to maximize optionality (i.e., preparation) which creates capacity for investment as the right opportunities arise (i.e., execution). FORVIS is excited to be on the journey with you! 24 IN the spotlight: CFO Committee
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