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Editorial - BMO Harris
Savoy Magazine
My ascension to the North American CEO of BMO Harris could not have come at a more exciting time for myself and the development of BMO as a bank. With our recent acquisition of Bank of the West (BOTW), we have nearly doubled our US footprint. This is our company’s largest acquisition to date and transforms BMO from a trusted regional bank with a proven track record of success into the 8th largest (by total US assets) commercial bank in the United States. I am elated to preside over this transition as this shift means an opportunity to invest meaningfully in digital capabilities, offer integrated capital markets and wealth products and services, and attract top talent that will ultimately lead to better results for our most important asset: OUR CUSTOMERS.
In the acquisition process, a major factor in getting through regulatory hurdles was our strong track record of supporting minority small businesses and communities with superior community benefits planning. Building on our EMpower program, we have committed an additional 40 billion dollars, with 16 billion earmarked for the State of California, to strengthen minority communities and small businesses within the next 5 years. Our main areas of strategic focus are homeownership, small business loans, community development, and community partnerships to make sure that our efforts drive lasting change in the communities that need it the most.
As an African American CEO, I am reminded more than most about the importance of building quality infrastructure in minority communities. The impact of financial inequality for women, Latinx, and African American people has to be dealt with by putting people and their needs at the center- not just because it is right, but also because it is sound business policy.
As we look towards the future of our business, direct investment in underserved communities is seen not only as a progressive measure, but also as a new pipeline of banking and commercial services customers to help grow our business and meet company revenue targets. As we all know, there is a large gap in homeownership and small business ownership and that gap represents an opportunity. Opportunity to develop customers in the effort to close this gap. Sustained growth comes through expansion and investment together with all the people that we serve to create a more inclusive future.
Sustained growth also means strategic investment in a sustainable world. As early as 2010, we have been able to achieve carbon neutrality and continue to push to lower our collective impact on the planet. From investment in renewables to using data and AI to reduce our needs for corporate travel, BMO has made caring for the planet we live on a priority tenant in how we operate our business.
Although a great testament to the work that talented people at BMO have done, our biggest environmental and business impact is in bringing this knowledge and commitment to our customers and investments. A strategic priority is to partner with clients that have a shared vision for the future and give them support to reach their targets around the sustainability of that future.
Our drive to be our clients’ lead partner in their transition to a net zero world is not only rooted in concern for the planet, but also a realization that investment today will save money in future. By partnering with clients that have strategic priorities that align with BMO and helping them to achieve their targets through resources and financing, we know that we are building business relationships that will also be moving into the future with us. Forward thinking clients with the right resources lead to larger returns for them, our bank, and our investors.
Another key growth tenant that we are excited to expand upon is our human capital. Through our acquisition of BOTW, our retail business has grown to over 21,000. Winning culture combined with increased asset capital and an introduction to new major markets in the United States gives us the tools we need to continue to chase top talent. Our track record of 194 straight years of dividend returns, a record in North America, is something we can build upon only by continuing to innovate through dedicated personnel committed to the highest returns for our customers and investors.
While we look towards the future and all the opportunities presented by moving into our role as a top ten commercial bank in the US, our main priority remains our commitment to our current customers and investors that have made this transition possible. Although we are proud of our 5-year return of 7.7% for our investors and our strong track record of risk management and performance, we continue to strive to modernize and increase our efficiencies and our returns. This strong positioning allows us to invest back into resources to do more for all of our clients and grow our business relationship together.
Our increased market access and scale also gives us a unique opportunity for continued investment in digital and financial services so that we can better serve our customers’ needs and grow our business through maximizing the ways that we are able to do business together. Initiatives such as our One Client leadership are designed at enhancing the banking relationship that we have with our clients by introducing them to the full suite of BMO’s products, services, and expertise. Our goal is to create a holistic banking space for our clients so that they can get the most out of our commercial banking, capital markets, and wealth management services; maximizing our combined return.
One Client leadership also promotes our standing as the only North American bank with North-South integration. Our open banking solutions allow clients to integrate their banking, accounts payable and receivable systems in ways that reduce barriers for all of our clients for increased efficiency. Although we have physical branches in 32 States, our investment in the digital space gives us, and our customers, the access to services they need in all 50 States.
Our Digital First approach is aimed at enhancing the consumer and employee experience to drive revenue and efficiency. Through targeted investments in the digital space, we have enhanced our online banking features so that 90% of all service transactions are completed through self-serve channels. This gives our clients the access they need to services no matter where they are located and also allows our employees to focus on giving advice to our customers when they need it most.
Looking into a future at a time of growth and expansion comes with its fair share of challenges. Challenges that we are prepared to face by building on our long-standing record of consistent growth, commitment to stakeholders, and responsible risk management. Investing in digital resources, One Client leadership, Digital First, and an integrated approach to banking services will not only serve our clients well, but also our shareholders and employees.
Our position as a purpose-driven company that is committed to a sustainable future and an inclusive society is not only a key responsibility, but also a necessary avenue for sustainable and continued growth. Come bank with BMO and join us in modern banking with a purpose as we push forward to invest in a future that we can make a reality together.
