2 min read February 2023 — In an interview with Invest:, Ann Meade, regional president for Webster Bank, discussed major milestones, the economic landscape in the Greater Boston region, strategies to mitigate current challenges, the implementation of technology and the outlook for the bank over the near future.
What have been some highlights and takeaways for Webster Bank over the past 12 months in terms of growth?
For 2022, the Webster Bank and Sterling National Bank merger was a significant highlight, bringing together two high-performing banks which not only enhanced our scale, but also provided important loan growth potential. The merger also created a best-in-class deposit franchise and reinforces our commitment to community development and good corporate citizenship. At the same time, it furnishes us with a wider range of services and products, allowing us to better serve clients of any size. As one of the top 40 largest banks in the country, we have become an even more meaningful and impactful player in the market.
How would you describe the current state of the economy in the Greater Boston region?
The Boston area, in general, follows the country’s economy. However, historically we have been more recession-resistant than most areas thanks in large part to the concentration of higher education throughout the region with a large number of colleges and universities, as well as the presence of world-class healthcare, biotech, and high-tech. The challenges that currently exist nationwide include rising inflation and interest rates, which has significantly impacted residential and commercial real estate. Additionally, labor shortages continue to be a challenge in this area. Companies are competing for skilled workers, and are dealing with hiring and retention issues across all businesses. Over the last year, most businesses have experienced wage growth in a high turnover environment, as well as changing demographics around workplace preferences and flexibility.
What are the bank’s strategies to strategize around the current challenges that exist in the marketplace?
Flexibility in the workplace has been a primary focus across our bank. We learned during COVID that our team can work efficiently and at a high capacity from home, depending on their role and responsibilities, and that has continued in this post-pandemic era. We understand how critical it is to retain employees and attract new talent, and to do that we need to ensure we are fostering an environment of collaboration and mentorship.
Throughout the current uncertainty and the changes experienced over the last couple of years, what changes have you seen in the demand for the types of services you provide?
There are two areas that are doing particularly well. The first is our commercial lending business, an area that historically performs well for us, and we continue to see that now and in the future. Our focus has been on having a line of business verticals that allows us to leverage our strong industry expertise. When our attention is on the sector, our value proposition is generally higher. Another area that has seen increased demand is our wealth management team due to our tailored approach to clients’ wealth. What’s unique to our approach is that we develop very individualized portfolios to address each of our clients’ needs and providing direct access to our portfolio manager is a key part of our business model that is a differentiator for us.
What are some of the initiatives the bank champions as part of its community engagement?
Community engagement and social responsibility have never been more important and has long been a priority for us. But it became an even more significant focus for us during the merger with Sterling Bank. When we announced the merger, we also introduced a new Office of Corporate Responsibility to oversee our expanded community engagement, which was highlighted by the announcement of a $6.5 billion three-year commitment to invest in those communities. Part of that pledge is focused on small business lending where we are making capital more accessible to entrepreneurs and small businesses with a $2.1 billion commitment over the next few years. Additional priorities are aimed at minority and women-owned businesses, investments in community development and making key services more accessible for low to moderate-income communities with a $2 billion commitment. We will continue to support programs that focus on equity, economic inclusion, and financial empowerment. We are also very proud of our outstanding CRA rating.
How is the bank leveraging technology and innovation?
The technology landscape is constantly changing and evolving, and we leverage these new advancements and improvements to increase the bandwidth for the bank which enables us to best serve our clients. We are committed to working with like-minded peers to drive innovation. In fact, this year HSA Bank, which is a division of Webster, launched a new employer digital experience designed to better help users manage employee benefit account programs. This is a cloud data platform that influences behavioral science and provides employees with data, key metrics and tools right at the fingertips of human resource benefit managers’ hands. Another important piece of this is that it delivers intuitive access to key administrative tasks, a better understanding of the employees’ information needs, and an easy way to optimize plan designs in an increased understanding of their performance against their peers.
What is your outlook for Webster Bank and the banking industry in the Greater Boston area for the near future?
With the transformation that has occurred this year, we are highly focused on growth and helping our clients navigate this uncertain macro-environment. Over the next couple of years, Webster will continue to play a critical role in the economic vitality of the communities we serve. Our priority will always be centered around being the best bank for our customers and being the employer of choice to attract and retain talent as we continue to grow the bank. We understand that in order to meet our business priorities, it all starts with our people, so we want to maintain the culture we have created.
From my perspective, Webster’s commitment to Greater Boston is in expanding services and community investments. I’m really proud to work here and I’m excited about the value and amazing opportunities we can bring to our existing and future clients.
One thing that distinguishes Webster Bank is knowledge rooted in the importance of relationship banking, particularly during times like this when business owners are experiencing higher interest rates, labor shortages, supply chain challenges and so much more. We really understand our clients and their unique banking, and we want to be there for them in good times and in bad. This means aligning ourselves with their goals and using our expertise to best serve them with highly customized financial solutions. There is no one-size fits all, which is a key differentiator for us.
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