New leader in place at BankIn Minnesota

New BankIn Minnesota President and CEO Rich Jones sees a litany of challenges facing community bankers, such as industrywide consolidation fueled by executive succession challenges, along with a lack of technological adoption and regulatory challenges leaving smaller banks at a disadvantage..More importantly, Jones, former president and CEO of Randall State Bank in central Minnesota, sees opportunities to address those issues. As the leader of the association since Oct. 14, Jones hopes to connect banks with third-party tech vendors to increase their operating efficiency, similar to work he led at his bank. Under Jones’ leadership, Randall State Bank onboarded payroll software to replace its outdated, inefficient spreadsheet system. He also sees potential for tech-fueled efficiencies in 401(k) and IT services.BankIn Minnesota plans to reintroduce its member engagement committee, which Jones sees as needed to listen more effectively to its members. “This member engagement committee is going to be an extremely impactful committee to help us develop strategies around education, advocacy and events,” he added.Jones, who served on the board of United Bankers’ Bank for the past two years, sees industry consolidation and the lack of de novos as two of the biggest challenges facing community banks and local communities. The number of FDIC-insured banks nationwide has fallen to around 4,000 from 6,700 a decade ago.Jones celebrates legislative momentum in Congress to lower the cost of starting a new bank. Under the Promoting New Bank Formation Act, federal bankin agencies would establish a three-year phase-in period for banks to meet federal capital standards. Jones also expects to establish an emerging leaders committee to help younger bankers who are in leadership positions. He sees doing so as essential in slowing the pace of M&A as succession planning challenges often lead to the sale of a bank.“In communities where the community bank is no longer there because they got purchased by somebody else, the lending has dropped drastically,” Jones said. “It’s critical from that perspective, because a lot of this consolidation is because there is no ownership succession or leadership succession.”Jones also sees a chance to eliminate the tax exemption enjoyed by credit unions following multiple high-profile lawsuits against key industry players and the growing perception that some are misusing their tax exemption by prioritizing asset growth over serving their customer base.“Legislators are seeing some of these things now, some of the money that credit unions are spending on naming rights of stadiums,” Jones said. “There’s a lot of that that’s coming to the forefront that was not necessarily known.”During his time at Randall State Bank, Jones, as profiled by BankBeat in 2021, helped produce videos to elevate the profile of local businesses and position the bank as approachable and community-focused. In his new role, Jones is looking for opportunities to highlight the impact Minnesota community bankers are making, potentially shooting videos sharing the stories of bank members that made a significant impact on a local business.‘They took me under their wing’Jones, president and CEO of Randall State Bank since 2013, grew up in Nisswa, Minn., part of the Brainerd Lakes region. He remembered going into the bank as a child, where the president knew everyone in the community.Jones, a first-generation banker, spent a decade working at TCF Bank and Wells Fargo. He also managed four branches for Baxter-based American National Bank of Minnesota. Jones was pursuing similar connections with customers and community members by joining one of the smallest banks in the state.He plans to remain chair of the board at Randall State Bank.“It’s hard for people to understand how great of a community it is,” Jones said of the bankers who work in the community banking industry. “I have friends who are community bankers who have said, ‘If you need a place to stay, we have an extra room at our house. You can come whenever you want. You can stay two nights a week.’”Jones was introduced to BankIn Minnesota a decade ago by former First State Bank Southwest President Alvin Kooiman. Jones saw the chance to advocate for his fellow community bankers and combine his love of politics and banking. He attended his first ICBA Capital Summit in Washington, D.C., in 2016. At that meeting, he met several local banking leaders, including four former BankIn Minnesota presidents/CEOs or chairs: Marshall McKay, Jim Amundson, Greg Raymo and Scott Wakefield.“They took me under their wing and made me feel welcome and part of the community, and helped me grow my passion for community banking by showing how great everybody in community banking is,” Jones said.He later joined BankIn Minnesota’s Legislative Committee, attending more conferences at the Capitol. Jones was elected as one of two Minnesota federal delegates for ICBA in 2020. He has also been on the ICBA Housing Finance Committee.Jones wrote letters to Rep. Pete Stauber (R-Minn.) and Sen. Tina Smith (D-Minn.) outlining the impact he expected the proposed Section 1071 small business data collection rules would have on community banks.“There has not been anything community-bank focused I have not personally been involved in during the last eight years, whether it be through grassroots efforts in writing letters, making phone calls, doing those things or going to Washington and having those conversations,” Jones said.Jones’ hire reflects the belief among BankIn Minnesota board members that a former banker is best suited to run the association. He said 165 of the state’s approximately 230 banks are members. “I can relate to those challenges those bankers are having,” he said.Raymo agrees. “Rich is a proven leader with a strong grasp of the operational and relationship sides of community banking,” he said. “He understands what it takes for community banks to thrive in today’s environment, and he shares BankIn’s commitment to helping them do just that.”