As Jack Barnes closes in on a decade as CEO of People”™s United Bank, his aims are twofold: technological advances and continued growth.
Digital technology rules the day and it”™s demanding. For any business this means giving customers 24-hour access through online services, and it had better be easy to maneuver. Banks have an especially tall order in satisfying customers who want to be able to check their accounts day or night, withdraw their money when banks are closed, deposit checks from anywhere, transfer funds among accounts, pay bills through the bank, send money to others and apply for credit cards, loans and even mortgages.
Competing in the digital world requires capital investment and prioritization. People”™s technology investments and partnership with a financial technology company enable customers to enter a few pieces of information on peoples.com and learn if they are eligible for a loan. In fact, 20% of People”™s home equity loans and mortgages start with customers applying through a computer or smartphone, said Barnes, and small-business owners have been able to obtain loans of up to $250,000 through that process.
People”™s website moved to an Adobe platform and has evolved to ensure ease of use, said Barnes. The bank also takes advantage of opportunities for digital marketing on the site. “A person comes to the site, leaves, then returns. We can help finish the journey,” he said.
Social media is another reality of the digital world, and People”™s approach has been “careful,” said Barnes, “but we”™re getting better.”
He emphasizes that the attention on digital technology does not mean branches are becoming unnecessary, however.
“Branches will be relevant for a long, long time,” Barnes said. “People want to talk to a person for advice.”
Barnes was involved with information technology even before he came to People”™s in 2008 after the Bridgeport-based bank, then valued at $14 billion, acquired Chittenden Corp. of Burlington, Vermont. He had been executive vice president of Chittenden Services Group, overseeing IT and other services. After the acquisition, which raised People”™s value to $20 billion, he became senior executive vice president and chief administrative officer of People”™s United Financial, again overseeing IT as well as operations, real estate and business services. Two years later, he took on the roles of president and CEO and, in May 2018, he was named chairman of the board while retaining his CEO title.
During Barnes”™ years at the helm People”™s has spread its reach, taking advantage of Connecticut”™s location between New York and Boston. This included the acquisition of 57 branches from Citizens Bank in the Boston area.
More recent acquisitions include Eagle Insurance Group, LLC of Raynham, Massachusetts, in April 2016; the Gerstein Fisher investment firm of New York City in November 2016; Suffolk Bancorp of Riverhead, New York, in April 2017; LEAF Commercial Capital, Inc. of Philadelphia in July 2017; First CT Bancorp, Inc./Farmington Bank in October 2018; VAR Technology Finance of Mesquite, Texas, this past January; BSB Bancorp, Inc./Belmont Savings Bank of Belmont, Massachusetts, in April; and United Financial Bancorp, Inc./United Bank of Hartford in November.
People”™s value has grown to $58 billion and, said Barnes, it holds the highest deposit shares in Fairfield County, second highest in the Hartford region and third highest in New England.
Acquisitions entail cultural integration. Barnes prefers to start the process with the human aspect. When People”™s closed the deal for United Financial Bancorp, Barnes scheduled a town hall-style meeting with United employees aiming to get in front of them as soon as possible.
“I asked them to not assume anything. Our position is always, ”˜We need good talent. Give us a chance,”™” he said. “I talked about respect and empathy and that it is a two-way street. ”˜We will respect you and we will be empathetic of the change and anxiety you are going through,”™ and I asked them that they also be respectful and empathetic towards our people.”
Looking ahead to the next decade, Barnes said, “We are who we are and there”™s no reason to change. We have brought in talent and expertise in areas where we didn”™t have it before, things our customers need and want. As we grow, we”™re taking time to improve ourselves in that way. Looking at acquisitions and footprint, we”™ve done a lot of work there and I see the pattern continuing.”
With LEAF in the fold, he sees Philadelphia as the next region to expand People”™s footprint.
“We have a lot of long-tenured and a lot of great people who are really good at what they do,” he said. “Some are out front and some are in the back, in cybersecurity and the call centers. Customers interact with those in the branches, but they don”™t see the background.”
Charles V. Firlotte is the former president and CEO of Bridgeport-based Aquarion Company. He can be reached at cvfirlotte@gmail.com.
