Pub. 5 2016 Issue 4

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 10 YBOK THE ROYALS WAY THE 2016 YOUNG BANK OFFICERS OF KANSAS SPRING CONFERENCE T HE YBOK CONFERENCE HIT A GRAND SLAM in Kansas City on May 2-3, 2016, with a record attendance of 134 bankers. Federal Reserve Bank of Kansas City President Esther George spoke of the challenging times we are in and the opportunity we have to shape the industry for the future. People can obtain credit outside of the banking system, cash is no longer the primary method and the internet is a vehicle for electronic forms of payment. The fragmentation of the payment system with non-banks moving into this space begs the question of safety and what would happen to public trust if a breach occurred outside of the traditional system. The Federal Reserve Bank is engaged in their role as a leader to invite private sector players to help provide service with safety in mind. George also commented on the regulatory process which is a direct result of the growing concentration of size and footprint of 5 institutions. She is in favor of seeking relief for community banks but not eliminating regulation. (The regulatory process should be built in layers based on the amount of capital and the complexity of the bank practices. Broker/dealer regulatory processes should be different than traditional lender operations.) She believes it will take legislation to accomplish this level of change. George closed with a statement on monetary policy that the short term could be painful because interest rates have remained low for too long. Kansas Representative Scott Schwab, a Republican representing District 49 in Johnson County, was a pinch hitter when U.S. Congressman Kevin Yoder cancelled just hours before the conference. Schwab is the chair of the Insurance and Financial Institutions Committee and has the ability to simplify issues at the end of a complicated session. He opened his talk by lighting what appeared to be a cigar and as attendees sat aghast he cautioned about perception. What he had appeared to light and smoke was simply a vapor cigar. His message was simple: perception is not always reality. He continued to explain that the columns in the Missouri-owned Kansas City Star and Wichita Eagle are written with the intention to make Kansas look bad. A better place to get information about the state’s finances is at www.kansas.gov . He continued that the state is on solid footing and the tax cuts didn’t cut revenue. Revenues are actually above last year. The problem is that spending is up even more. Schwab gave an update on education funding and closed with an appeal to Jason Brown, Senior Economist at the Federal Reserve Bank of Kansas City, and gave a 2016 economic outlook that demonstrated the sagging economy with three consecutive quarters of slowed GDP growth. The global headwinds play a large role as the dollar is stronger and emerging countries are using quantitative easing to prop up their economy. He also spoke to the active labor market but it appears to be stalling out as we reach the historical average in employment numbers. Other than the Kansas City Royals, the big deal was about the new financial literacy app for Kansas banks to use in high schools. YBOK President Kathy Schwerdtfager provided a demonstration of the module that allows each student to build their own profile about life such as career, marriage and children. It assigns revenue and expenses based on the choices they make and educates the student about credit and debt, savings and investments. It is designed to be a 90-minute presentation that the banker takes to the school and it can be led in a large auditorium or in a small classroom. A request for logos will be going out to all Kansas banks so that every bank has a PIN number to their personalized section of the app. This program will be offered at no charge to all KBA members. The voice of the Kansas City Royals, Rex Hudler, passed his championship ring around for everyone to see and hold. Many pictures with bankers’ hands adorned with the championship ring were uploaded to Facebook, and the energy level of the room was climbing for a full hour. Hudler’s message was simple as he discussed events of his life and how attitude, faith and grace worked into his game. In a simple statement he declared, “Have confidence in yourself. If you want it bad enough, then take failure and work harder.” The CEO Panel was made up of super stars and included President & CEO of UMB Bank in Kansas City Mike Hagedorn; Chairman, President & CEO of Country Club Bank Paul Thompson and President & CEO of Bank of the Prairie Chris Donnelly. The panel was moderated by KBA- EVP, Government Relations Doug Wareham. The panel gave very transparent and insightful feedback to questions about the economy, technology and leadership in an evolving industry. The conference closed with a short presentation from Kurt Knutson, Chairman, CEO & President of Freedom Bank in Overland Park. Kurt provided some background information to explain how he entered the industry and used experiences to embrace the opportunities that came his way. He then encouraged attendees to think for themselves and be innovative. Technology is rapidly changing how customers interact with the banking industry and the millennial generation is pushing for rapid convenience and informal pathways to banking services. Kurt gave some examples of how to reach people where they want to be served and asked, “Will tomorrow’s customers want to bank with you?” The next stop was Kauffman Stadium for a tailgate provided by Security 1st Title followed by a Royals game. The weather was perfect and Rex Hudler’s boys pulled out a win in the bottom of the 9th. All in all, it was a great experience for all. The next YBOK conference will be in Wichita on September 8-9, 2016.