[LTPC-discussions] Cendant takes business away from banks, article

Tue, 8 Jul 2003 01:14:36 EDT

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Article about Cendant taking business away from banks. Nov. 22 2002
<A HREF=3D"http://www.centralmaine.com/people/2002/stories/021122banks_pa.sh=
tml">

Small banks persevere</A>
... loan business. "Cendant's goal," said Pinkham, "is to take banks=20
completely
out of the home buying process.". Keeping up ...=20
www.centralmaine.com/people/2002/ stories/021122banks_pa.shtml - 34k - <A HR=
EF=3D"http://216.239.39.104/search?q=3Dcache:u19SYDiYxksJ:www.centralmaine.c=
om/people/2002/stories/021122banks_pa.shtml+cendant+buying+banks,+credit+uni=
ons&hl=3Den&ie=3DUTF-8">Cached</A>=20
- <A HREF=3D"http://www.google.com/search?hl=3Den&lr=3D&ie=3DUTF-8&q=3Drelat=
ed:www.centralmaine.com/people/2002/stories/021122banks_pa.shtml">Similar pa=
ges</A>=20

                    =C2=A0=C2=A0 =20

Friday, November 22, 2002

Small banks persevere=20
Efficiency, service, prices keep customers coming back

By M.J. KANIUKA, Business Journal=20

<A HREF=3D"http://www.centralmaine.com/copyright.shtml">Copyright</A> =C2=
=A9 2002 Blethen Maine Newspapers Inc.

    =C2=A0   <A HREF=3D"http://www.centralmaine.com/cgi-bin/emailnews.pl/ema=
il.txt">E-mail this story to a friend</A>

   =20
    =C2=A0

The hometown bank is alive and well in central Maine. Hometown or community=20
banks, headquartered locally, thrive because they enjoy several advantages,=20
said Arthur Markos, president of the Gardiner Savings Institution, FSB. They=
 can=20
offer "a sympathetic ear, quick decision-making and a commitment to the=20
community."

Five banks are headquartered in Kennebec, Somerset and Franklin counties. In=
=20
order of size of assets, they are the Gardiner Savings Institution, FSB,=20
Kennebec Savings Bank, Skowhegan Savings Bank, Franklin Savings Bank and Ken=
nebec=20
Federal Savings & Loan Association.=20

Although their charters vary =E2=80=94 two are federally rather than state c=
hartered =E2=80=94
 changes in banking laws permit them to provide many similar services, said=20
Christopher Pinkham, president of the Maine Association of Community Banks,=20
based in Portland. Their services are also similar to those offered by far l=
arger=20
banks.=20

"Community banks are not defined so much by such numbers as deposits and=20
assets, but by geographic area, or the territory they serve," Pinkham said.=20

Indeed, on its Internet site, Franklin Savings Bank, headquartered in=20
Farmington, states, "While we would love to serve the lending and deposit ne=
eds of=20
the world, our customer service area is restricted to communities of the gre=
ater=20
western Maine foothills."=20

Allan Rancourt, president of the Kennebec Federal Savings & Loan Association=
,=20
said it serves an area within a 50-mile radius.=20

Within their service area, these banks and their branches extend a wide-rang=
e=20
of services for both consumers and small to medium-sized business owners. "W=
e=20
can provide everything except some of the larger loan or sophisticated=20
corporate services required by big companies," said Mark Johnston, president=
 of the=20
Kennebec Savings Bank, headquartered in Augusta.=20

Providing mortgage loans and refinancing home mortgages constitutes a big=20
part of community banks' business. "Customers don't want to wait so long for=
 a=20
decision on a mortgage or home equity loan that the rates go up. Speed of=20
decision-making is important," Rancourt said.=20

"Our customers go through good times and bad. They appreciate being able to=20
talk to a 'live' person with a friendly face, maybe even the bank president,=
"=20
Rancourt said.=20

Decisions at a community bank are made faster because they are made locally.=
=20
Often a branch manager is empowered to make loans up to a certain amount on=20
his own, Pinkham said.=20

Community banks face many challenges not only from larger multi-state banks,=
=20
but from other financial entities, like credit unions, Internet financial=20
services =E2=80=94 and even real estate companies.=20

Cendant, the marketer and provider of business services, for example,=20
recently purchased DeWolfe Realty. They already own Coldwell Banker, Century=
 21 and=20
ERA, and have experienced a big jump in their mortgage loan business.=20
"Cendant's goal," said Pinkham, "is to take banks completely out of the home=
 buying=20
process."=20

Keeping up with the new technology is another challenge community banks face=
.=20
Customers demand of them the same online services offered by bigger=20
institutions. Many bank customers avoid going to the bank altogether by havi=
ng their=20
paycheck deposited and bills, even savings and investments done automaticall=
y.=20

Installing such systems is a big expense for a smaller bank, Pinkham said.=20
"They must also invest heavily in services from a third party vendor to prot=
ect=20
customer security."=20

In addition, many banks maintain Web sites for educational and public=20
relations purposes.=20

Community banks work together for their mutual advantage. They recently=20
introduced "Maine Cash Access." That service allows their ATM holders to use=
=20
machines at other Maine member banks without a surcharge.=20

Community banks are all mutual institutions, that is they are owned by their=
=20
depositors. Instead of paying dividends to stockholders they invest in their=
=20
communities in many obvious and not so obvious ways.=20

For example, their headquarters buildings help to keep the downtown communit=
y=20
vital. Whenever they remodel or expand, it helps reinvigorate downtown.=20
Franklin Savings Bank, for example, recently built a $3 million service buil=
ding=20
behind its headquarters.=20

When community banks open branches, they often take over an existing bank=20
building or build a new one. Gardiner Savings Bank, FSB, recently announced=20=
that=20
it would take over the Key Bank Building in Oakland.=20

Skowhegan Savings Bank in October 2001 razed several buildings in Fairfield=20
to build a brand new building on Main Street.=20

Several community banks maintain charitable foundations and all of them=20
donate money to the communities they serve. Last year, for example, Gardiner=
=20
Charitable Foundation made grants, ranging from $50 to $20,000 and totaling=20
$359,000, to 200 nonprofit organizations.=20

Bank employees are encouraged to donate their time and talents to worthy=20
causes. The 18 employees of Kennebec Federal Savings & Loan decided to conce=
ntrate=20
on two organizations, the Waterville Chamber of Commerce and the homeless=20
shelter. Among the projects they worked on was the chamber's Taste of Greate=
r=20
Waterville festival and a golf tournament to aid the shelter. "The employees=
 are=20
buying into the community and loving it," Rancourt said.=20

Karen Hart, marketing manager of the Skowhegan Savings Bank, said that their=
=20
180 employees contribute more than 1,000 volunteer hours in the course of a=20
year. The bank also supports a whole range of young people's sports activiti=
es =E2=80=94=20
basketball, Little League, field hockey and others =E2=80=94 through recreat=
ion=20
departments, Hart said.=20

"Smaller community banks realize they cannot be all things to all people. Bu=
t=20
they also realize they have something to offer," Pinkham said.=20

"In choosing a bank, people look for convenience, speed of transactions, the=
n=20
rate. Often they take friends' advice. Wise consumers should always compare=20
price and service, not only for the present, but also for the future," he sa=
id.=20

   =20

   =20

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<HTML>Article about Cendant taking business away from banks.=
&nbsp; Nov. 22 2002 
<A HREF=3D"http://www.centralmaine.com/people/2002/stories/021122banks_pa.sh=
tml">

Small <B>banks</B> persevere</A><BR>
<B>...</B> loan business. "<B>Cendant's</B> goal," said Pinkham, "is to take=
 <B>banks</B> completely<BR>
out of the home <B>buying</B> process.". Keeping up <B>...</B> <BR>
</FONT><FONT  COLOR=3D"#008000" style=3D"BACKGROUND-COLOR: #ffffff" SIZE=3D2=
 FAMILY=3D"SANSSERIF" FACE=3D"Arial" LANG=3D"0">www.centralmaine.com/people/=
2002/ stories/021122banks_pa.shtml - 34k - <A HREF=3D"http://216.239.39.104/=
search?q=3Dcache:u19SYDiYxksJ:www.centralmaine.com/people/2002/stories/02112=
2banks_pa.shtml+cendant+buying+banks,+credit+unions&hl=3Den&ie=3DUTF-8">Cach=
ed</A> - <A HREF=3D"http://www.google.com/search?hl=3Den&lr=3D&ie=3DUTF-8&q=
=3Drelated:www.centralmaine.com/people/2002/stories/021122banks_pa.shtml">Si=
milar pages</A> <BR>
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0">        =C2=A0=C2=A0  <BR>
<BR>
Friday, November 22, 2002<BR>
<BR>
<BR>
<BR>
Small banks persevere <BR>
Efficiency, service, prices keep customers coming back<BR>
<BR>
<BR>
By M.J. KANIUKA, Business Journal <BR>
<BR>
<A HREF=3D"http://www.centralmaine.com/copyright.shtml">Copyright</A> =C2=
=A9 2002 Blethen Maine Newspapers Inc.<BR>
<BR>
<P ALIGN=3DRIGHT>    =C2=A0   <A HREF=3D"http://www.centralmaine.com/cgi-bin=
/emailnews.pl/email.txt">E-mail this story to a friend</A><BR>
<BR>
<BR>
<P ALIGN=3DLEFT>    <BR>
<IMG  SRC=3D"http://www.mainetoday.com/images/dotclear.gif" WIDTH=3D"10" HEI=
GHT=3D"1" BORDER=3D"0">    =C2=A0<BR>
<BR>
The hometown bank is alive and well in central Maine. Hometown or community=20=
banks, headquartered locally, thrive because they enjoy several advantages,=20=
said Arthur Markos, president of the Gardiner Savings Institution, FSB. They=
 can offer "a sympathetic ear, quick decision-making and a commitment to the=
 community."<BR>
<BR>
<BR>
<BR>
Five banks are headquartered in Kennebec, Somerset and Franklin counties. In=
 order of size of assets, they are the Gardiner Savings Institution, FSB, Ke=
nnebec Savings Bank, Skowhegan Savings Bank, Franklin Savings Bank and Kenne=
bec Federal Savings &amp; Loan Association. <BR>
<BR>
Although their charters vary =E2=80=94 two are federally rather than state c=
hartered =E2=80=94 changes in banking laws permit them to provide many simil=
ar services, said Christopher Pinkham, president of the Maine Association of=
 Community Banks, based in Portland. Their services are also similar to thos=
e offered by far larger banks. <BR>
<BR>
"Community banks are not defined so much by such numbers as deposits and ass=
ets, but by geographic area, or the territory they serve," Pinkham said. <BR=
>
<BR>
Indeed, on its Internet site, Franklin Savings Bank, headquartered in Farmin=
gton, states, "While we would love to serve the lending and deposit needs of=
 the world, our customer service area is restricted to communities of the gr=
eater western Maine foothills." <BR>
<BR>
Allan Rancourt, president of the Kennebec Federal Savings &amp; Loan Associa=
tion, said it serves an area within a 50-mile radius. <BR>
<BR>
Within their service area, these banks and their branches extend a wide-rang=
e of services for both consumers and small to medium-sized business owners.=20=
"We can provide everything except some of the larger loan or sophisticated c=
orporate services required by big companies," said Mark Johnston, president=20=
of the Kennebec Savings Bank, headquartered in Augusta. <BR>
<BR>
Providing mortgage loans and refinancing home mortgages constitutes a big pa=
rt of community banks' business. "Customers don't want to wait so long for a=
 decision on a mortgage or home equity loan that the rates go up. Speed of d=
ecision-making is important," Rancourt said. <BR>
<BR>
"Our customers go through good times and bad. They appreciate being able to=20=
talk to a 'live' person with a friendly face, maybe even the bank president,=
" Rancourt said. <BR>
<BR>
Decisions at a community bank are made faster because they are made locally.=
 Often a branch manager is empowered to make loans up to a certain amount on=
 his own, Pinkham said. <BR>
<BR>
Community banks face many challenges not only from larger multi-state banks,=
 but from other financial entities, like credit unions, Internet financial s=
ervices =E2=80=94 and even real estate companies. <BR>
<BR>
Cendant, the marketer and provider of business services, for example, recent=
ly purchased DeWolfe Realty. They already own Coldwell Banker, Century 21 an=
d ERA, and have experienced a big jump in their mortgage loan business. "Cen=
dant's goal," said Pinkham, "is to take banks completely out of the home buy=
ing process." <BR>
<BR>
Keeping up with the new technology is another challenge community banks face=
. Customers demand of them the same online services offered by bigger instit=
utions. Many bank customers avoid going to the bank altogether by having the=
ir paycheck deposited and bills, even savings and investments done automatic=
ally. <BR>
<BR>
Installing such systems is a big expense for a smaller bank, Pinkham said. "=
They must also invest heavily in services from a third party vendor to prote=
ct customer security." <BR>
<BR>
In addition, many banks maintain Web sites for educational and public relati=
ons purposes. <BR>
<BR>
Community banks work together for their mutual advantage. They recently intr=
oduced "Maine Cash Access." That service allows their ATM holders to use mac=
hines at other Maine member banks without a surcharge. <BR>
<BR>
Community banks are all mutual institutions, that is they are owned by their=
 depositors. Instead of paying dividends to stockholders they invest in thei=
r communities in many obvious and not so obvious ways. <BR>
<BR>
For example, their headquarters buildings help to keep the downtown communit=
y vital. Whenever they remodel or expand, it helps reinvigorate downtown. Fr=
anklin Savings Bank, for example, recently built a $3 million service buildi=
ng behind its headquarters. <BR>
<BR>
When community banks open branches, they often take over an existing bank bu=
ilding or build a new one. Gardiner Savings Bank, FSB, recently announced th=
at it would take over the Key Bank Building in Oakland. <BR>
<BR>
Skowhegan Savings Bank in October 2001 razed several buildings in Fairfield=20=
to build a brand new building on Main Street. <BR>
<BR>
Several community banks maintain charitable foundations and all of them dona=
te money to the communities they serve. Last year, for example, Gardiner Cha=
ritable Foundation made grants, ranging from $50 to $20,000 and totaling $35=
9,000, to 200 nonprofit organizations. <BR>
<BR>
Bank employees are encouraged to donate their time and talents to worthy cau=
ses. The 18 employees of Kennebec Federal Savings &amp; Loan decided to conc=
entrate on two organizations, the Waterville Chamber of Commerce and the hom=
eless shelter. Among the projects they worked on was the chamber's Taste of=20=
Greater Waterville festival and a golf tournament to aid the shelter. "The e=
mployees are buying into the community and loving it," Rancourt said. <BR>
<BR>
Karen Hart, marketing manager of the Skowhegan Savings Bank, said that their=
 180 employees contribute more than 1,000 volunteer hours in the course of a=
 year. The bank also supports a whole range of young people's sports activit=
ies =E2=80=94 basketball, Little League, field hockey and others =E2=80=94 t=
hrough recreation departments, Hart said. <BR>
<BR>
"Smaller community banks realize they cannot be all things to all people. Bu=
t they also realize they have something to offer," Pinkham said. <BR>
<BR>
"In choosing a bank, people look for convenience, speed of transactions, the=
n rate. Often they take friends' advice. Wise consumers should always compar=
e price and service, not only for the present, but also for the future," he=20=
said. <BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
    <BR>
<BR>
<BR>
<BR>
    <BR>
<BR>
<BR>
<BR>
<BR>
<BR>
</P></P></FONT></HTML>
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