Chris Motl is executive vice president of middle market banking at Webster Bank, a job he was promoted to in January. The middle market banking division was recently the recipient of the Greenwich Associates Excellence Award for overall satisfaction. Motl talks about his experience working in middle market banking and where he sees it fitting into the Rhode Island marketplace.
PBN: How does it feel to receive a Greenwich Associates Excellence Awards for “overall satisfaction” in middle market banking?
MOTL: We are so pleased to receive an award of this stature. It recognizes how the Middle Market Banking team works with their internal partners at Webster Bank to provide financial solutions in a responsive, committed, and thoughtful way to help our customers meet their financial objectives. Additionally, the people Webster hires are people who identify with the bank’s core values and this has created a culture that differentiates us in the markets we serve. It’s about taking personal responsibility for meeting our customer needs, treating them with respect, and earning their trust. By working together, we achieve outstanding results.
PBN: You took over as executive vice president, middle market banking, in January. How would you describe Rhode Island’s middle market today in comparison to Connecticut and what percentage of your overall business does it make up?
MOTL: I am definitely new to the job for all of Middle Market Banking and I am trying to get my arms around the different market dynamics within Webster Bank’s footprint, but I don’t view the Rhode Island marketplace as significantly different than Connecticut or other areas of Webster Bank’s footprint. These are all mature markets with some very good middle market companies within many different industries and a significant number of sizable not-for-profits. Like the rest of Webster Bank’s Middle Market footprint, Rhode Island has significant bank competition and customers receive many proposals for almost any type of financial product. With that said, the Greenwich Associates Excellence Award demonstrates that Webster Bank’s people make the difference and in Rhode Island, Bob Twomey is one of those people. Bob started Webster Bank’s Middle Market group almost ten years ago and today it represents a sizeable percentage of Webster Bank’s Middle Market business. Fortunately, I took over an experienced team in Rhode Island that has the people and platform to continue to grow Webster Bank’s share of Middle Market companies.
PBN: Joining Webster in 2004, how have you seen the region’s middle market change in the last decade?
MOTL: I believe the three biggest shifts in middle market banking during the last decade are;
1) The continued shift in the economy from an asset rich economy that consisted of manufacturing companies (and specific to New England specialty manufacturing businesses) to a more services oriented economy (mostly intangible assets) has caused lenders to find ways to provide loans based on cash flow instead of assets. These type of loans have always been provide to corporate borrower’s but slowly middle market lenders are finding credit solutions that meet customer needs but still are within the bank’s risk parameters.
2) The prevalence of private equity firms that are focused on middle market businesses has created lending opportunities but has also caused consolidation of middle market borrowers that eventually roll up to become corporate borrowers or are acquired by corporations. Businesses change ownership instead of being passed from generation to generation, which has created more financing events and this usually means the customer will request multiple proposals more often. This has increased deal opportunities but has also increased churn of existing borrowers.
3) The increase of online banking for most bank products but primarily for cash management solutions. There are more transactions being processed and the cost per transaction has been driven down primarily because the customer manages most of the cash management transactions through an online product. This has created many efficiencies but has completely changed the way middle market customers interact with their banks on a daily basis. Additionally, this has created many online security risks for middle market companies, which has caused banks to work differently with their customers to ensure their cash is managed safely.
PBN: What differentiates your approach to middle market banking from other financial institutions?
MOTL: There are two differentiators at Webster Bank:
1) As I stated previously, the people are the primarily differentiator. The culture has allowed Webster Bank to hire seasoned middle market bankers that are looking to join an institution that has the scope and scale to provide sophisticated financial solutions to middle market customers but yet small enough to be responsive to their customers’ needs in a timely manner. Many of the middle market team members are from much larger institutions but have chosen Webster due to the value proposition Webster can provide to their customer and working in a culture that aligns with their personal values.
2) Webster’s well defined credit risk appetite coupled with a good working partnership between the line of business and credit, allows Webster Bank to provide a quick and responsive proposal that has been vetted with the appropriate decision makers. This provides surety of execution and a streamlined process once Webster is awarded a mandate.
PBN: Do you have plans to grow the middle market banking division at Webster, if so, how?
MOTL Yes. Webster plans to grow the middle market banking division through the following:
