How to Build Your Own Bank
8 min readHow to Build Your Own Bank
We discuss with Scott Shay and David Schuman how Scott built his business from Scratch and focused on Values to drive his client relationships
@coachschuman on tik tok, twitter, instagram
www.nucsports.com
www.scottshay.com
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Please watch: “(287) Legends Live! Is there enough parity in college football? ”
https://www.youtube.com/watch?v=uVo5HtB6IrQ
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Your bank was this Bank it was like Literally within like a handful of years Every one of these independent banks Were all together in one way shape or Another and providing all services You know merging all services all that Kind of stuff so how how do you go like Do how do you raise the capital to do That and you know like obviously the the Disclose the secret sauce but some of The steps that you went to in order to Do that because from a business stand it Absolutely remarkable to go and actually Open a bank you know something that People always yes they you say you say Money doesn't grow on trees well if you Get a bank it's growing on trees for you And so you got and you're helping people At the same time that you're doing it so And and that's that's really what it's All about so explain a little bit about That like how did you go about some of Those steps sure and and I'm gonna you Know I had the pleasure listening just a Couple your podcast too so I'm gonna try To tie it in a little bit if that's okay With you sure sure it's all about in the End building the team and coaching other People to be their best is critical in Business and and I think that's that's Why so many former athletes are such Good business people now some are really Bad business people to it don't mind me Right cuz they didn't learn anything
Right and but I have to tell you we have As some of our clients by the way some Former athletes from football baseball And and some of them really paid Attention to the business lessons that They could learn from being part of a Team sport some of them didn't and by The way I think that those people are Part of team sports have a better chance If they're paying attention to learning Lessons that are applicable because it's Always about the team it's always about The team you know if You're playing tennis you know by Yourself it's about making yourself Great in the best way that you can but If you're part of it I'll if you're on The football field I mean you can be the Greatest quarterback in the world but if You don't have people who are on your Front line if you don't have receivers If you don't have you know if you don't Have a team around you you you know you Could be the best quarterback in the World but it's gonna be pretty pretty Ugly and you're gonna be pretty bruised Up so it's a lot about the team and a Lot about conditioning and doing the Right thing so I'll tell you I'll tell You a story and this will get to a Couple of the points and one we open the Bank May 1st 2001 and this was a pretty Scary thing because all of a sudden we Now have 300 ish people we've just hired
Over the last month the last surge of You know let's say a hundred plus people And we're ready to open the doors and I Got up and I said made it up on the spot I said you know in five years we're Gonna be a five billion dollar bank and In 10 years we're gonna be a ten million Dollar bank so fast forward five years We were a 3.8 million dollars which Wasn't bad but for me I wanted to do a Deep assessment with my partners are we Doing the right things are we do we need To change this is a big time you know we Set a goal it didn't matter that the Call came you know it was like came out Of nowhere but are we able to are we Doing the right things to become the Five in ten million dollar bank and we You know really did that assessment and We said yes we are doing the right Things we're getting traction and it's Going to depend on the environment and Whether we can take advantage of that Fast-forward the next five years We're fourteen point eight billion Dollar make in the second five years we Go we're eleven point eight billion and That didn't happen by accident it Happened because we were do All the right stuff and when the 2008 Crisis came we stuck together as a team We're the only bank in the United States If I could do one you know I'm super Proud of this we're literally the only
Bank in the United States that during The full financial crisis you know 7 Going through we made more money in a Way to know 7 more money no none and Then Oh 8 more money in 10 that night we Never had it down here and I actually Ascribed that we're the only bank in the In states over 4 billion that can say That and I ascribe that to not any ice Crab it's our culture I ascribe it to Being willing to look hard and say you Know the subprime stuff it's really Crazy we're not gonna do it even if it's Gonna cost us money in the long term Because it's not serving our clients you Know cdo's squared that doesn't make Sense we want to be a conservative bank We said no to more stuff then you can Shake a stick and yet and and we were Criticized for it at the time and she Have to be willing to take criticism but You have to be focused on creating man Team with the right culture and we did And you know fast-forward the second Night you know it's not quite ten years From when we were fourteen point eight Billion it's about nine and a half and We're over fifty billion and we haven't Done any acquisitions because we were Doing the right thing it's about Conditioning it's about you know being Ready when times are strange I mean That's what's going on today you know we Came into this you know we can talk
About it at some point later you know Holding those sort of values we're gonna Stay really liquid we're not gonna try To do anything aerobic we're gonna you Know and and we're gonna make sure that Our team is together so I I sort of Answered your question yeah absolutely And now I think what's what's really Fascinating is the the ability to Acquire customers from scratch in a bank In that creating that confidence so I Give you my dollars as a small business Owner or mid-sized business owner you Know what makes me want to come to your Bank versus going to some place where You know you know they've been around For a hundred years type of thing III think that might be one of the Toughest things and it's the most Interesting things about what separates A bank like your somebody else so a Couple things number one you will never Hear you could stay here a year and you Won't hear the term customer used in This Bank Everybody's a client you know and by That I mean we are looking out for our Clients we're trying to figure out how To make them more money and that's an Important perspective I mean when the Wells Fargo thinking about we couldn't Imagine like can you a man I can't Imagine anybody here saying I'm gonna Set up another account for a you know a
Commission or whatever it was an Incentive and it hurts or doesn't help My client I mean it's about so I have This this rural and I call it the the Well let me even abstract because this Actually does come from my book in good Faith is I think the secret to Everything the secret to to not secret But the the essence of all morality and The essence to running a business right Is from the Bible love your neighbor as Yourself and as hello put it in a Practical manner don't do what is Hateful unto you to someone else the Rest is commentary go learn it so like Every bank we have this you know big Thick standards akan conduct but you Know what I did a few years ago I put That at the front and said you know what You got to read the rest of this Unfortunate because of bank regulations But just if you approach Every client every vendor every Counterparty with the view they don't do Unto them what would be hateful unto you You're good I mean you always have to Put yourself in the other person's Position that doesn't mean we don't have To collect loans in the like of someone Their fault so it means that in day to Day in day to day business we're looking Out for the other person and that comes Through I think authentically and by the way if
Someone's not doing it they're not gonna Stay here cuz we're not gonna I mean We're a great environment but if you're Not looking out for your clients and You're not looking out for and you're Not you know we have to negotiate with Vendors I'm like we don't just cut Checks to vendors but we don't do Untoward things and and you know that Culture has been so important and I Think you know you said someone Approached you from signature Bank I Think in the before we started recording If you met with someone from signature Bank you'd find that those values are Imbued into what we do we're not if it Doesn't make sense you don't know many Times I've told people you know we've We've talked to you know what what your Your your current financial situation With your current provider is great good Luck if you know situation changes fine If we so we think we're the best bank For for businesses for privately owned Businesses between 25 and 500 employees And even though most people haven't Heard of us cuz we know I'm a retail Franchise if you're in there That group you're gonna and you're Talking other people like that you're Gonna hear those stories over and over Again that you know the bank came Through I don't know I mean I you know I Do get complaints once in a while don't
Get me wrong we're a bank we do a lot of People but it's so that number is Overwhelmed by people saying boy the Bank did the right thing absolutely I'm I'm II actually I get emails people say They're grateful they bank you I mean It's really but that comes from Vale
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