Name: Diversity and beyond: How can you stay relevant in changing demographics and customer expectations?
Uploaded: 2023-10-24T15:55:14.145Z
Duration: 373.04
Description: Jim Perry, Senior Strategist, Market Insights, shares some of the most critical areas that banks need to pay attention to today: diversity and their connection to their customers.

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INT.012 Jim Perry.vtt

English

{{00:00:04}}
Steven Ramirez: Hi, I'm Steven
Ramirez, the CEO of Beyond the

{{00:00:06}}
Arc, and I am so thrilled to be
back here at Finovate in New York.

{{00:00:11}}
And this time, great
conversation with Jim Perry.

{{00:00:13}}
Jim, it is a pleasure to actually see you
in the flesh, not on social media, not on

{{00:00:18}}
LinkedIn, but actually here in New York.

{{00:00:20}}
Jim Perry: Exactly, Steven.

{{00:00:21}}
It's so much fun.

{{00:00:22}}
I've had so many contacts with folks
that I've been talking to virtually

{{00:00:26}}
for the last four or five years.

{{00:00:28}}
Here we're real people.

{{00:00:29}}
Steven Ramirez: Yeah.

{{00:00:30}}
So tell me about.

{{00:00:30}}
So speaking of that, you
were on stage so what are you

{{00:00:33}}
talking about here at Finovate?

{{00:00:35}}
Jim Perry: Interestingly enough,
I'm not talking about AI.

{{00:00:39}}
I'm not talking about chatGPT.

{{00:00:41}}
I'm talking about diversity.

{{00:00:43}}
It's something that I think we need to
be having a lot more conversation with

{{00:00:46}}
these days because let's face it, overall,
we have a population that's becoming

{{00:00:53}}
increasingly diverse, and we need to be
able to deal with the two most important

{{00:00:58}}
things in this industry right now,
which is keeping talent, finding talent.

{{00:01:03}}
And finding customers and retaining
them, and we're not going to do it if

{{00:01:07}}
we don't tend to the issue of diversity.

{{00:01:10}}
Steven Ramirez: If you're, if
you're a community based financial

{{00:01:12}}
institution where should diversity
fit in your strategic goals?

{{00:01:17}}
Jim Perry: Honestly, it should
be a priority, especially if you

{{00:01:21}}
haven't paid attention to it.

{{00:01:23}}
So often, it doesn't become a
strategic priority for the institution.

{{00:01:28}}
It'll it'll be handed off to
HR, somebody looks at it on a

{{00:01:33}}
value statement somewhere, but
it doesn't get much past that.

{{00:01:36}}
And then on the other hand, I see small
institutions, sometimes they get stuck

{{00:01:40}}
dealing with like tiny little issues,
like whether or not to put our pronouns on

{{00:01:46}}
our email, it's what do we do with that?

{{00:01:48}}
No, let's elevate this to a larger issue.

{{00:01:52}}
Let's talk about representation.

{{00:01:54}}
Let's talk about things like pay equity.

{{00:01:57}}
Let's talk about things that
are actually going to engage

{{00:02:00}}
your workforce more completely.

{{00:02:02}}
Steven Ramirez: And are you seeing
that they're changing demographic

{{00:02:05}}
trends and that's something that
banks need to tackle head on?

{{00:02:09}}
Jim Perry: Absolutely.

{{00:02:10}}
One of the things that's always
interesting, I just quoted some statistics

{{00:02:14}}
pretty recently about how within the
next 20 years, we're going to be in a

{{00:02:20}}
situation where white Americans will
be essentially in a minority for the

{{00:02:25}}
first time in our nation's history.

{{00:02:27}}
Now, of course, some people in this
time of culture wars and political

{{00:02:32}}
kind of craziness, they push back
against that and they get really

{{00:02:37}}
nervous and they get really anxious.

{{00:02:38}}
But this is a trajectory we've known
about for the last several decades.

{{00:02:43}}
We've seen this coming.

{{00:02:45}}
Our nation is becoming
increasingly diverse.

{{00:02:47}}
And when you get down to certain
market areas, I've seen institutions

{{00:02:51}}
totally ignore some of what's
happening demographically around them.

{{00:02:56}}
And then they realize they're
not aligned with their customers.

{{00:02:59}}
They're not aligned with the market
and they're missing opportunities.

{{00:03:03}}
Steven Ramirez: I think that's
really the theme, right?

{{00:03:04}}
Is if you can align with the changes
that are happening in your market,

{{00:03:08}}
not just from a diversity perspective,
but I see, I wonder if you see that

{{00:03:11}}
on a bigger and a bigger way too?

{{00:03:13}}
Jim Perry: Absolutely.

{{00:03:14}}
One of the things that I've been talking
at a lot of conferences about is we're

{{00:03:19}}
approaching, if not already arrived at
a demographic crisis in this country

{{00:03:23}}
because there are a lot of community
based institutions, especially that they

{{00:03:28}}
could be looking at big percentages of
their customer base right now that are

{{00:03:34}}
over the age of 70 over the age of 75.

{{00:03:37}}
We know how that story ends.

{{00:03:39}}
And unfortunately most of their
kids or grandkids have long ago

{{00:03:43}}
moved out of that market area.

{{00:03:46}}
We were working with a client
that was losing a million dollars

{{00:03:48}}
in deposits every single month.

{{00:03:50}}
Steven Ramirez: Yeah, and at this
time when deposit retention and

{{00:03:53}}
growth is more important than ever
those are, those become critical.

{{00:03:57}}
I've been watching this from the
perspective of the great wealth

{{00:04:00}}
transfer you have now over 70
trillion dollars that are going to

{{00:04:04}}
transfer to a much more diverse set
of beneficiaries, more of a more

{{00:04:09}}
changing needs,  different lifestyles.

{{00:04:12}}
And so I think there's an opportunity
for financial institutions to align

{{00:04:17}}
with these changing demographics.

{{00:04:20}}
And, we see it on the wealth side, but
I think you see it in retail banking.

{{00:04:23}}
I think you see it even in, what
it means to run a small business.

{{00:04:26}}
I think that all of these
things are somehow connected.

{{00:04:30}}
Jim Perry: Absolutely.

{{00:04:30}}
And one of the things I'm excited about is
seeing the leadership that's coming from

{{00:04:34}}
the fintech side of the kind of community.

{{00:04:37}}
To really give banks, give credit unions
the tools that they need to actually

{{00:04:44}}
meet that new generation with the kind of
products and services that are going to

{{00:04:48}}
help make sure that transfer of wealth can
stay within a particular market if that's

{{00:04:54}}
what that institution is prepared for.

{{00:04:57}}
When you start talking about some
of the great tools we've been

{{00:05:00}}
hearing here at Finovate, it's let's
accelerate that as quickly as possible.

{{00:05:05}}
Because we are right there now.

{{00:05:08}}
Steven Ramirez: Yeah, and since we are
at Finovate, I guess my last question

{{00:05:10}}
for you is as you look at these set
of problems and challenges  that

{{00:05:15}}
that, financial institutions face,
are there particular technologies or

{{00:05:19}}
tools that have gotten your attention?

{{00:05:21}}
Jim Perry: Oh my goodness there's so many.

{{00:05:24}}
I can't even pick one off
from the top of my mind.

{{00:05:27}}
But I think the thing that I'm most
frustrated with and the thing that

{{00:05:31}}
I'm always telling bankers to do all
the time: You have to lean into this.

{{00:05:36}}
You have to experiment with it.

{{00:05:39}}
When I see people like cross
their arms and get all cranky

{{00:05:42}}
over no, I'll never use chat GPT.

{{00:05:45}}
It's like you should be experimenting
with everything that comes along.

{{00:05:48}}
I've been saying that ever since we
started finding new digital tools.

{{00:05:52}}
Yes.

{{00:05:53}}
Open an account.

{{00:05:54}}
See what your customers are doing
because they're now way ahead of you.

{{00:05:58}}
You've got to catch up.

{{00:06:00}}
Steven Ramirez: Yeah.

{{00:06:00}}
Great.

{{00:06:01}}
Jim, thank you very much.

{{00:06:02}}
Really appreciate the conversation today.

{{00:06:04}}
And I really appreciate
everyone joining us.

{{00:06:06}}
Thank you.

Steven Ramirez: Hi, I'm Steven
Ramirez, the CEO of Beyond the

Arc, and I am so thrilled to be
back here at Finovate in New York.

And this time, great
conversation with Jim Perry.

Jim, it is a pleasure to actually see you
in the flesh, not on social media, not on

I've had so many contacts with folks
that I've been talking to virtually

So speaking of that, you
were on stage so what are you

Jim Perry: Interestingly enough,
I'm not talking about AI.

It's something that I think we need to
be having a lot more conversation with

these days because let's face it, overall,
we have a population that's becoming

increasingly diverse, and we need to be
able to deal with the two most important

things in this industry right now,
which is keeping talent, finding talent.

And finding customers and retaining
them, and we're not going to do it if

Steven Ramirez: If you're, if
you're a community based financial

institution where should diversity
fit in your strategic goals?

Jim Perry: Honestly, it should
be a priority, especially if you

So often, it doesn't become a
strategic priority for the institution.

It'll it'll be handed off to
HR, somebody looks at it on a

value statement somewhere, but
it doesn't get much past that.

And then on the other hand, I see small
institutions, sometimes they get stuck

dealing with like tiny little issues,
like whether or not to put our pronouns on

No, let's elevate this to a larger issue.

Let's talk about things that
are actually going to engage

Steven Ramirez: And are you seeing
that they're changing demographic

trends and that's something that
banks need to tackle head on?

One of the things that's always
interesting, I just quoted some statistics

pretty recently about how within the
next 20 years, we're going to be in a

situation where white Americans will
be essentially in a minority for the

Now, of course, some people in this
time of culture wars and political

kind of craziness, they push back
against that and they get really

But this is a trajectory we've known
about for the last several decades.

Our nation is becoming
increasingly diverse.

And when you get down to certain
market areas, I've seen institutions

totally ignore some of what's
happening demographically around them.

And then they realize they're
not aligned with their customers.

They're not aligned with the market
and they're missing opportunities.

Steven Ramirez: I think that's
really the theme, right?

Is if you can align with the changes
that are happening in your market,

not just from a diversity perspective,
but I see, I wonder if you see that

One of the things that I've been talking
at a lot of conferences about is we're

approaching, if not already arrived at
a demographic crisis in this country

because there are a lot of community
based institutions, especially that they

could be looking at big percentages of
their customer base right now that are

And unfortunately most of their
kids or grandkids have long ago

We were working with a client
that was losing a million dollars

Steven Ramirez: Yeah, and at this
time when deposit retention and

growth is more important than ever
those are, those become critical.

I've been watching this from the
perspective of the great wealth

transfer you have now over 70
trillion dollars that are going to

transfer to a much more diverse set
of beneficiaries, more of a more

And so I think there's an opportunity
for financial institutions to align

And, we see it on the wealth side, but
I think you see it in retail banking.

I think you see it even in, what
it means to run a small business.

I think that all of these
things are somehow connected.

And one of the things I'm excited about is
seeing the leadership that's coming from

the fintech side of the kind of community.

To really give banks, give credit unions
the tools that they need to actually

meet that new generation with the kind of
products and services that are going to

help make sure that transfer of wealth can
stay within a particular market if that's

When you start talking about some
of the great tools we've been

hearing here at Finovate, it's let's
accelerate that as quickly as possible.

Steven Ramirez: Yeah, and since we are
at Finovate, I guess my last question

for you is as you look at these set
of problems and challenges  that

that, financial institutions face,
are there particular technologies or

Jim Perry: Oh my goodness there's so many.

I can't even pick one off
from the top of my mind.

But I think the thing that I'm most
frustrated with and the thing that

I'm always telling bankers to do all
the time: You have to lean into this.

FinovateFall

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Jim Perry, Senior Strategist, Market Insights, shares some of the most critical areas that banks need to pay attention to today: diversity and their connection to their customers.