Marc A. Stefanski, chief executive officer, president and chairman of Cleveland-based Third Federal Savings and Loan, is marking three years into the CEO’s seat this season, that will be no tiny feat when you look at the banking world.
Since becoming president and CEO of this cost cost savings and loan 1987, Stefanski has overseen Third Federal’s consistent development as the most notable home loan loan provider in Ohio, also its development in the Florida market. Under Mr. Stefanski’s tenure as CEO, Third Federal has maintained and enhanced its distribution and solution of savings and mortgage items, such as the introduction of this online as being a distribution channel for home mortgages, with on the web now serving whilst the biggest supply of loan requests for the business.
Leader sat straight down with Stefanski to fairly share their three decades as CEO, what’s next for the cost cost savings and loan industry and exactly why it is very important to take care of employees with respect also to constantly place the client first.
Q: speak about your organization tradition and exactly why a customer-centric attitude is so essential in banking.
A: We put our customers first and away strategy 2nd. Therefore, whenever we’re making decisions, it is all considering clients and customer support first, as well as the strategy falls into destination from then on. We base our tradition for a value system, and our values are love, trust, dedication to quality, dealing with the other person with respect and having a great time.
We actually artwork products predicated on those values, and now we also review the social individuals that really work with us—our associates—based on the way they display those values with the other person in the office sufficient reason for clients. Therefore we don’t have product product sales quotas, and no a person is on payment.
Q: Why would you believe women make such leaders that are great the banking room?
A: First of all of the, 80 per cent of our associates are ladies, therefore we depend extremely on feamales in we. This times in the past to 1938 whenever my mom and dad began Third Federal. They certainly were an united group not just in marriage, nevertheless they had been a group running a business additionally. Whenever I ended up being growing up, my mother wasn’t just increasing five kiddies, but she was intimately active in the company, too. We saw that through the time I happened to be created. Having ladies perform a crucial role in operation just isn’t a novelty in my situation, it is perhaps not uncomfortable, it’s really an all natural thing. All in key positions at Third Federal in fact, out of the six direct reports that I have four are women.
Q: What does the long term hold for the cost savings and loan industry?
A: Here aren’t way too many cost savings and loans kept, many have actually changed into official statement banking institutions or bank charters in addition they provide a diverse manufacturer product line. Our manufacturer product line really is easy: We just simply take cost savings through the community and lend it back away in to the community in terms of single-family, owner-occupied houses. We do 2nd mortgages, too, but our business design is incredibly easy.
It’s an conventional model, however it is apparently working for all of us, and we also have finally expanded to 23 states through the internet and direct mail. It is very easy to expand without brick-and-mortar to deliver products and services throughout the country today. You have even to be able to obtain a bad credit company company loan for the restaurant.
The world wide web will probably keep on being a secured item into the banking industry, generally speaking, but cybersecurity is incredibly important—that’s our no. 1 concern, protecting our clients due to that.
It was previously were—they were all local, you knew where branch locations were, you knew who was on the loan committees and when they met—it was a very small, very community-based business that you knew who your competitors. You don’t have that anymore. Most of the banking institutions are regional or national, and that is our competition. We’re not small—we’re an almost $15 billion organization—but that is small when comparing to a number of the organizations that are huge here. So that the challenge would be to outperform those companies.
A: we think if you discover a distinct segment with a particular products or services, you are able to outperform your big bank rivals. They provide a smorgasbord of every thing, but finding that competitive niche where you are able to outperform a superregional, nationwide or bank that is international think is key.
That’s what we’ve done at Third Federal: we now have a niche in house financing so we feel we do it much better than someone else, we cost a lot better than someone else, we can change more than a loan faster than other people. You should be in a position to perform a lot better than other people if you’re going to be in a specific manufacturer product line or solution.
And, needless to say, employing the right people and dealing with them well. You’re going to be able to leverage that human capital and do a much better job than some of the other companies out there that may not treat their people as well if you have good people that are dedicated and loyal.