In 2013, Cindy Merkle made historical past in turning into the primary feminine president and CEO of Union Financial savings Financial institution within the Danbury-based monetary establishment’s 155 years. And in keeping with Merkle, she is overseeing the financial institution throughout a very historic stretch of time as properly.
Coming off a 12 months with a document variety of financial institution closures, Merkle was proud to report that Union Financial savings Financial institution has held regular.
“The variety of prospects which are coming into the branches is diminishing yearly,” she mentioned. “However we nonetheless firmly imagine you want a department for a buyer who needs monetary help or a perspective on monetary planning or consulting on mortgages. And numerous small companies nonetheless go to our branches, so that you wish to just remember to have people with the experience that may assist them on the enterprise sector as properly.”
Merkle said that for a big portion of the financial institution’s prospects, branches primarily function billboards till prospects determine they need the non-public contact of their transactions. Within the meantime, prospects — notably youthful ones — are doing extra of their banking on-line and thru cell apps, whereas the department areas present a staging floor for Union Financial savings neighborhood outreach packages and a internet hosting venue for the Love of Studying Libraries program that distributes free books for youngsters.
Merkle forecasted financial headwinds for the approaching 12 months.
“We have now had an excellent 12 months,” Merkle mentioned of 2021, “as did, I feel, most of our counterparts in Connecticut. It was a difficult second 12 months of the pandemic, however most of us participated within the Paycheck Safety Program (PPP).
“After the second spherical of the PPP early on in 2021 there was a sturdy mortgage market with refinance exercise as a result of rates of interest have been so low,” Merkle added. “We had numerous buy mortgages, however now I feel homebuyers are discovering it tough because of the tiny stock.”
Merkle predicted the robust market efficiency from final 12 months will not be going to have an encore.
“2022 might be not going to be a repeat of 2021,” she warned. “We anticipate this 12 months a lot of rate of interest hikes from the Federal Reserve. We don’t know what number of, however I feel when you have been to speak to any CEO six months in the past, they’d’ve mentioned perhaps one or two in 2022 — however we’re listening to from the Fed that it may very well be radically greater than that. So, we’re to see what’s going to occur mid-March on the Fed assembly.”
The Russian invasion of Ukraine and U.S. sanctions on Russia are unlikely to have an apparent financial affect on Fairfield County companies, in keeping with Merkle, who believed gasoline costs could also be price watching — though she believed that the true risk for a lot of native companies is digital.
“There’s been heightened cyber alerts to be sure that everyone seems to be doing what they must be doing,” she mentioned, “however we have been getting these over a 12 months, two years in the past. We’ve constantly invested in our data safety infrastructure, and I’d say from an trade perspective we’re forward of the curve for fairly a number of years.”
In consequence, Merkle characterised the approaching 12 months as a time for Union Financial savings to consolidate its buyer base and supply them with extra providers. That can embody integration into cell pay programs and expanded on-line banking choices. Union Financial savings can be one of many first banks within the area to supply advances of as much as two days on pay day deposits, a service that may be essential for these with sudden bills or with hire coming due earlier than payday.
“What we’re actually taking a look at is to boost and enhance the variety of households that we financial institution in Connecticut from a relationship perspective,” Merkle mentioned. “As a result of that’s actually how we have now to develop: organically.”