Russ Holland is on a mission. The executive vice president and chief lending officer of Florida’s Seacoast National Bank is trying to bring commercial real estate banking in his state up to speed with Generation X entrepreneurs.
While smaller size banking clients, including commercial real estate investors, multifamily property managers and other firms operating in the commercial mortgage space, have changed, banks have not.
Differences in how banks handle consumer lending and commercial lending, he says, are even more pronounced in real estate transactions because while lessons from the housing crisis helped make banking friendlier for homeowners, commercial real estate banking still is resistant to engaging smaller size business owners in the lending process.
Generation X is the target market because their banking needs are as different from old school banking as their way of life and fast paced mentality, says Holland, who came up with the new Accelerate banking idea.“Gen X represents the new type of customer that loves interactive technology and needs a new type of service that is much more engaging.”
The Accelerate model development lasted less than a year. In March Seacoast opened the first branch. Today staff is giving final touches to three Accelerate business centers that will open simultaneously later this month in Central Florida.
The $2 billion community bank said it is expanding this new type of commercial banking model, complete with a team of seasoned experts, sophisticated technology and a wine bar into additional locations in Florida.
Holland told this publication the decision to expand was based on the success of the first branch opened in Orlando earlier this year. “We have already seen significant success with our new model with more than $75 million in new commercial loans committed in 2013.”
Accelerate banking represents “a new banking culture” that caters to Generation X, he said, focusing on a mindset more aligned with the demands of new entrepreneurs who are looking for untraditional, stronger banking relationships and faster decision-making opportunities.
“There is no hierarchy, so all employees including analyzers, have deep knowledge of the industry and the Central Florida community and are empowered to participate in finding solutions for clients,” Holland said. Seacoast has invested in hiring highly experienced experts with a proven track record of success in the financial services industry.
Third-party business experts are available for consultation in various business areas such as real estate, legal, insurance, investment banking, accounting, technology and non-traditional finance.
“We connect clients with the business and financial experts they need" and commercial loan underwriters, he said, through Skype and face-to-face, "which is unheard of in the
The Accelerate model includes bringing in experts to assist clients, even if those resources are unaffiliated with Seacoast National Bank.
According to Holland, many Generation X entrepreneurs already have embraced the Accelerate approach as an effective way to speed up business decisions.
Under the Accelerate philosophy, banking-related decisions are finalized with speed using highly interactive, personalized service that removes “obstacles that have traditionally delayed a business’s ability to move forward quickly.”
Accelerate branches do not function or look like a traditional bank branch. The office design offers easy access to staff that is expected to encourage creative group thinking that expedites decision-making and solution-finding in a set up that is attractive to and can keep pace with younger executives.
These “fuel cells,” Holland said, provide a modern setting that includes a coffee and wine bar alongside interactive technology fit for younger executives who, in addition, find inside a dynamic and untraditional business platform that offers non-depository online commercial banking services.
Seacoast’s Accelerate experts provide business consulting to small business owners whose assets do not exceed $20 million. “People with at least 20 years of industry experience are providing these small businesses the high level financial expertise that normally is available only to larger companies,” he said. In addition to traditional business banking solutions Accelerate units merge commercial banking with achievement advisory services.
The Gen X demographic of entrepreneurs is a large and growing group, they may no longer be beginners, Holland said, but still are at the start of their careers and can use some advice from much more experienced bankers.
Holland started working on his idea in 2012. To brainstorm with peers, he called a meeting with a group of bankers and insisted it would take place at a boat house. “I wanted the meeting to be as far removed from a traditional banking environment as possible,” he recalls, in the hope that attendees would be inspired to keep an open mind, venture into creative thinking and come up with untraditional solutions. It worked.
His vision became a reality in March. By the end of June Seacoast expects to have six Accelerate locations, three in Orlando and another three in South Florida.
”The plan is to expand in Florida for now, since it is the market where we already have 34 branches and it is the market we know best,” Holland said. The second phase of the Accelerate model expansion will be in the non-commercial, consumer finance space including mortgages.
