Anne P. Tangen joined Fall River-based BankFive as its CEO and president in 2020, continuing a long career in financial services. She served in senior roles at Fidelity Investments Inc., State Street Bank and The Cooperative Bank of Cape Cod.
Once known as Fall River Five Cents Savings Bank, BankFive has 13 branches and four lending offices in Massachusetts and Rhode Island. According to the Federal Deposit Insurance Corp., the bank had $32.4 million in deposits in Rhode Island as of June 30, 2023.
PBN: BankFive has a branch location in Bristol and a lending office in Cranston. Are there plans to expand BankFive's presence in Rhode Island?
TANGEN: BankFive is committed to expanding our presence in Rhode Island. We have plans to move our Cranston lending office to Warwick, where we will debut our digital branch model that offers customers the opportunity for in-person service, as well as the convenience of teller services through a walk-up and drive-up interactive teller machine.
The Warwick location will house a business banking lender, a commercial lender, a mortgage loan originator and a customer service representative to assist customers with all of their needs.
PBN: What is attractive about the Rhode Island market to BankFive? Is it more, or less, competitive than southeastern Massachusetts?
TANGEN: There is often a misconception that BankFive is only a south coast bank, but even before we opened our Bristol branch, we had thousands of customers from Rhode Island. In the 10 years since we opened our Bristol and Cranston offices, we have cultivated deeper relationships with Rhode Island residents and businesses, and we also employ many Rhode Island residents.
The two markets are alike in many ways, both in terms of their banking needs and their business climate. It makes sense for us to continue to expand our footprint in the state, and most importantly, our customers want us to have a greater presence; they ask us to expand.
PBN: How would BankFive differentiate itself from not only the other banks but credit unions too? There are plenty of community banks and credit unions here that say they offer personalized service, and that customers/members are more than just depositors and borrowers.
TANGEN: BankFive was founded 169 years ago by a group of businessmen who saw a need for a bank that would also support their communities. They started a mutual bank that is owned by account holders and not shareholders. Today, we are still proud to serve the south coast, and to extend that mission to Rhode Island and Cape Cod. Everything we do is guided by our values being “human, dynamic and steadfast.”
Even as bigger banks are pulling out of the region, we will stay here and constantly evolve in order to adapt to our customers' needs. The level of personalized customer service also differentiates us, as does our commitment to providing the high-tech services that rival bigger banks in Greater Boston. BankFive consistently receives five-star reviews on Trustpilot, with some customers even mentioning that they feel like family when they visit our branches.
Since the banking crisis last year, customers care about reputation. We are here today and will be here tomorrow. Customers know that their deposits are safe at an institution that is cautious but also adapts to their changing needs. We are part of the Depositors Insurance Fund in addition to the FDIC, which provides a second layer of deposit protection. We will continue to be a bedrock in the communities we serve and an innovative financial institution for the future.
PBN: In speaking with banks about the use of interactive teller machines or personal teller machines, some executives think the jury's still out on them. What is BankFive's stance on intelligent banking equipment? How does BankFive implement this technology?
TANGEN: We believe technology should be delivered with high touch and efficiency. With ITMs, we can offer more convenience in terms of hours the “branch” is open. We can deliver to customers depending on how they would like to be served. Some customers prefer technology that allows them to bank anytime, anywhere without help. We have found that others prefer either “do it with me” or “do it for me.” The ITM allows the customer to choose.
During the pandemic we had to reimagine customer service and meet our customers where they were – at home. So, we brought video banking to our customers. This feature essentially allows you to meet with a banker over your smartphone and complete a bevy of bank transactions. The popularity of this service continues to grow. We envision ITMs as an extension of that service. This will allow us to execute more services for our customers at more locations. For example, our Westport location was opened as a lending operation, but will now offer full services because of the ITM that is being built there.
PBN: For most banks in 2023, the interest rate situation put a squeeze on margins and shrank the bottom line. What do you foresee in 2024 on that front for BankFive and the industry as a whole?
TANGEN: It is certainly an interesting time in the banking industry as we face the challenge of liabilities repricing faster than assets. In 2024, we expect to see assets reprice through the normal course of business, and we will be strategic in our liability pricing.
To adapt to the economic climate, we have taken steps to become more efficient and mindful of overhead and expenses. We are in a strong position to face whatever challenges may come our way. That said, we are hopeful the Fed will start cutting interest rates at some point this year, which would provide some needed stabilization. Whether that happens or not, we will continue to offer a safe environment for our borrowers and depositors.
