Flushing Bank Uses Technology and Local Knowledge to Help Communities Grow
Who needs a global conglomerate for local financial services? Community banks can deliver comprehensive services, says the head of Flushing Bank.
In fact, John Buran, president and CEO, says that being local allows Flushing Bank to offer more knowledgeable, personalized service that will benefit the community, even as technology allows it to deliver the same services as its global brethren.
“The community bank is alive and well, reflected not just in our own success but that of community banks throughout the country,” he said. “There’s very little the average person can’t get from a community bank.”
That is why Flushing Bank, founded in 1929 and now with $6.3 billion in assets and 18 branches around the New York City metropolitan area, is investing in a modernization program that will feature innovative ATMs. These ATMs allow customers to choose to self-serve for routine transactions, and enable staff time to provide customers with individualized financial guidance. In addition, at a time when major institutions are closing branches, Flushing Bank is looking to grow.
“We’re in the middle of a significant transformation of our branches to much more modern and customer-friendly facilities,” Buran said. “We have to make the branch experience more engaging, and we’ve done that by creating what we think of as ATMs on steroids.”
Dubbed ASK (Assisted Service Kiosk) machines, these ATMs can do almost any transaction a teller can, from cashing a check to providing cash in preferred denominations. They can even temporarily increase a customer’s debit card withdrawal limit in case of an emergency or other situation.
The move is a response to the decline of traditional in-person transactions at bank branches as people increasingly transact, pay bills, and more online. It allows Flushing Bank’s Universal Bankers time to focus on financial advice regarding retirement or more general account information. The Bank also offers face-to-face video banker services (similar to Skype) through the ASK machines from 7 a.m. to 11 p.m. Customers can simply touch “Help” on the ATM screen to request assistance.
“We have a highly trained staff to provide these services,” Buran notes, adding that the staff speaks more than 30 languages. “You can go to a facility after hours, and our video bankers can help with the transaction at the customer’s request. We’re really extending the hours a banker can meet with a customer face-to-face.”
The ASK machines can be found in about half of the branches, with the installation to be completed in all branches by early 2019. The move allows Flushing Bank to downsize the footprint of its branches, while it enhances the banking experience for the customer, creating “a setting where customers can choose to engage with our universal bankers,” said Buran. “Our personal bankers are called ‘universal bankers’ because they really can do everything. They have expertise and the time to serve the client.”
Such innovation is easier with a regional bank, he observed. Larger banks may have less local knowledge, and may find it more difficult to offer customized solutions. They tend to have a more “cut-and-dry” approach to lending.
“The fact that we are a smaller company with roots in the community allows us to get to know our markets on a local level. We have an intimate knowledge of businesses in those neighborhoods. Many local businesses get their financing from community banks for this reason alone,” he said. “This local knowledge enhances our lending interactions with customers.”
Flushing Bank recognizes the diversity of the New York metropolitan area, and focuses on ethnic niches such as the Asian community in downtown Flushing, and the Russian community in Southern Brooklyn.
The last two decades have seen New York City’s boroughs change as the demographics of neighborhoods evolve, Buran continued.
“Queens, which is considered one of the most diverse counties in the U.S., is now experiencing a new vibrancy with the influx of young millennials,” he noted, marveling at the generation’s ability to double or triple up to afford New York City’s expensive apartments. “As they progress, we’ll see more interest in townhouses or even single-family homes. We’re seeing that in communities on Long Island around downtown areas. They keep on regenerating themselves and community banks like ours have to remain cognizant of these trends.”
Even so, Flushing Bank must continue to compete with global companies, with hundreds of branches in this market. And it does so well.
“Our Bank is anywhere you can dip your card into an ATM,” he said. Business customers can use a bank-issued scanner to deposit checks. Other innovations include offering a safe to local businesses that will record the bills. Individuals can utilize direct deposit or remote check deposit via their smartphones.
“We don’t have to have 500 branches in New York. We want to select specific communities where we can develop a presence and provide something above and beyond what a big bank can provide,” he said.
Among the areas of interest are Long Island City in Queens, Brooklyn’s Sunset Park, and Hunts Point in the Bronx. And he expects growth going forward for the city.
Flushing Bank is an experienced multifamily and commercial real estate lender. It also has an expertise in business lending including C&I, equipment finance, and business and professional, as well as supporting small businesses with a total portfolio of about $5 billion in loans in the greater New York area.
“Through partnership with a not-for-profit and a Fintech company, we are now able to offer microloans for small business owners,” Buran said. “This expands our suite of business loans so that we can provide financing for every stage of a business, from a Small Business Administration (SBA) loan for a new business to a more traditional financing package to purchase equipment or property for a larger business. In that way, Flushing Bank is not only knowledgeable about its communities, but it’s building them, too.”
“It’s important for us,” he said. “We finance a fair amount of real estate in New York City, and we’re committed to the continuing improvement of our communities through business and residential lending.”
John Buran
President and CEO
Flushing Bank
220 RXR Plaza
New York, NY 11556
718-961-5400
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