Oscar Joaquim was recently named president of OceanPoint Marine Lending, a division of BankNewport. Joaquim comes to BankNewport after nearly three decades of work in the auto finance division of Citizens Bank, most recently as senior vice president and national sales manager.
PBN: What are your top three priorities for your new role?
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JOAQUIM: My top three priorities are to support the bank’s strategic growth plans in the marine lending space, which includes some expansion; to continue OPML’s digital transformation journey by rolling out new technology that provides a full end-to-end solution for both our customers and colleagues – these digital improvements will drive efficiencies while enhancing our customer experiences; lastly, it’s my intention to create a team-centric environment focused on mentoring and coaching to ensure that every team member has the tools and support to succeed.
PBN: How have rising interest rates and economic volatility impacted demand for OPML services? Do you expect that to continue as interest rate hikes ease?
JOAQUIM: Market conditions, which include interest rates, are something we keep a very close eye on across all business divisions. Right now, we are experiencing a seasonal slowdown, which is typical for this time of year.
We are cautiously monitoring the Federal Reserve’s strategy to combat inflation and all other financial indicators to see if in fact we do enter a recession. So far, customer resiliency seems to be holding up, but complexities across the economy do exist and that can result in decreased demand. As spring arrives and the boat shows kick-start the boating season, we do expect demand to pick up.
PBN: What do you see as the greatest challenges to growing and maintaining OPML’s portfolio and revenue in the forecasted recession/downturn?
JOAQUIM: The greatest potential challenges are rising interest rates and a possible economic recession. The avid boater will always want to purchase or upgrade their fleet, as boating is such a big part of their lifestyle. With that said, there is a point at which rates will reduce demand and compress spreads.
Higher interest rates make the cost of what is already a significant purchase that much more expensive for all. I can see first-time buyers being impacted, as they might be priced out of a certain segment due to the higher payments. These challenges come and go through the rate cycles; the unknown is always for how long.
PBN: How does marine lending differ from other lending segments (housing, business, etc.)? How are they the same?
JOAQUIM: Lending segments, whether housing, auto or marine, are more similar than we think. The principles used to assess a customer are the same, with slight differences occurring within the type of collateral, differences in dollar amounts, duration of the loans, and the ratios used to assess a customer. You would also find slight variations when it comes to recording or titling the collateral. One thing that is without a doubt the same, is while a competitive program is front and center, relationships drive a vast majority of the business.
PBN: How does your prior experience in auto lending for Citizens relate to your new role?
JOAQUIM: During my tenure at Citizens, we grew the auto business from a very small local presence to a national presence that spanned across most of the United States. A team was constructed of talented individuals that were the driving force behind this expansion. Technology was brought in to streamline processes and scale the business. Playbooks were developed to apply a consistent approach across all facets of the business.
I see this same growth opportunity within OPML as well. We already have a talented team of veteran lenders and financial experts, so my goal is to share and apply these experiences across the marine lending business so that we can support the bank’s strategic growth plans.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
