Michael Walsh was recently appointed vice president of commercial lending for the Rockland Trust Co. Walsh has over 30 years of experience in dealer financial services lending, most recently as senior vice president for Truist Bank (formerly Sun Trust). He has a bachelor’s degree in financial management from Salve Regina University.
PBN: What are your top three goals for 2022 in your new role?
WALSH: My goals for the coming year are simple:
- Maintain connections with all of my existing automotive dealership relationships.
- Continue to introduce myself and the Rockland Trust brand to dealers across the Northeast.
- Continue to be the trusted adviser that dealership operators and their management teams have come to know during my 30-year career.
As I am sure many would agree, 2021 has been challenging. I am looking forward to the new year and working with dealer clients to provide them with sound financial solutions and advice.
PBN: How does your prior experience, including at Sun Trust Bank (now Truist), lend itself to your new position?
WALSH: Throughout my career, I have focused exclusively on the automotive industry and providing dealer clients with solutions tailored to their unique borrowing needs.
I enjoy building long-term relationships and being a trusted resource. This is one thing that has remained consistent. What I’m looking forward to with Rockland Trust is the ability to offer my customers flexible financing solutions.
PBN: How has the pandemic impacted lending in the auto industry? Which of those changes do you anticipate will be permanent?
WALSH: The pandemic has translated into various supply chain disruptions for automotive manufacturers and dealers. Raw materials, in particular microchips, are harder than ever before for manufacturers to secure. Some manufacturers are responding to this by making investments in their own chip manufacturing capabilities. It is unlikely, however, that this will translate into immediate results given that it takes time to build the infrastructure and staffing needed.
In terms of what is permanent, it may be too soon to tell. We do, however, see that there is a trend where certain areas of the industry are moving toward a more digital format. Dealerships are striving to create virtual purchase and closing experiences, eliminating the high-touch dealership experience.
PBN: What are the biggest challenges facing the auto lending industry generally and at Rockland Trust?
WALSH: As we know, the pandemic has impacted everything. Floor plan lending, in essence, is a line of credit that allows automobile dealerships to finance the purchase of automotive inventory and place vehicles for sale on the lot without paying out of pocket. Lower inventory levels not only mean fewer available cars for consumers to purchase, but it also results in lower borrowing activity for financial institutions.
New competitors in the market, direct-to-consumer car dealers specifically, are an interesting variable right now. Whether the mass market will migrate toward this type of purchasing experience is still unclear. Digitization and the push from governments to mandate cleaner alternative fuel methods will likely lead to major shifts in the coming years.
PBN: How has the rise of fintech and an increasingly crowded financial services marketplace affected Rockland Trust’s ability to grow its auto lending stream? What advantages does Rockland Trust have over competitors?
WALSH: Floor plan lending is a specialized business. Rockland Trust has over 80 years of experience in this space and has created a niche for itself by providing floor plan solutions to independent and small to midsize franchised new-car dealerships, an area that the bigger banks historically have not had an appetite for.
I feel that Rockland Trust is uniquely positioned for success in the industry, as there has been an ongoing investment in the floor plan lending team. I am a representation of this. In addition to myself, there are four other lenders who specialize in floor plan lending, servicing dealerships across the Northeast.
My Rockland Trust colleagues prioritize people and relationships, which is what drew me to the bank. If we stay on this path and focus on what we do best – offering a creative lending approach and exceptional personalized service – then we will continue to successfully support dealers who value this type of relationship for years to come.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
