The Future of Payments

State of Banking 22 BANKING PERSPECTIVES QUARTER 4 2018 and our market risk. We just talked about our expansions in new markets, which is also a differentiation strategy. Diversity has a risk mitigation component to it but also a new business opportunity. So again, while we may have some concerns with micro challenges, there is a macro environment that still has more opportunity. Our job is to be a good steward, recognize the micro environments, and adjust accordingly. ARAMANDA: During the past 10 years, I think everyone would agree that banking has undergone more sweeping changes in the regulatory framework than probably all the years prior to that combined. Most recently, Congress recalibrated some of the changes. Do you think we’re at that Goldilocks era of regulatory approach, or is there more out there that you’d like to see addressed? ROGERS: Your comment about recalibration is a good one, and that reflects what’s going on right now. We’ve been very clear that regulation should not be a one-size- fits-all approach, and it shouldn’t be that banks must meet certain criteria because of things that are as simple as asset size. It really should be related to the risk profile and strategy of each organization. Regulatory reform has taken a really positive step, moving toward a continuum recognizing that regulation should be risk-based. The best way to ensure stability is to allow banks to have the maximum capability to serve their clients, support their communities, and compete effectively, while always retaining appropriate levels of safety and soundness. The current rhetoric is much more oriented toward a tailored regulatory environment, which I think is very appropriate. ARAMANDA: I think tailoring is a lot safer environment than a one-size-fits-all model, which ends up obscuring the basis of the next crisis. ROGERS: The one-size-fits-all approach can have unintended consequences. Holding too much capital has as much risk as holding too little capital, so the key is to have the right amount. Banks are substantially better capitalized now than pre-crisis, and I think that’s appropriate. I don’t think anyone would argue with the fact that more capital and more liquidity in the system has been positive overall. In this environment, it is good to constantly reevaluate where we are and make sure that we make adjustments to continue to improve regulation. ARAMANDA: Let’s touch on SunTrust’s financial wellness program. I know you mentioned that 40% of SunTrust teammates surveyed in the past lacked confidence in their finances. But, today, you’ve made great inroads in that. Why did SunTrust begin focusing on financial wellness a few years ago, and how do you see that helping your customers? ROGERS: SunTrust is a purpose-driven organization, and we define that purpose as “Lighting the Way to Financial Well-Being.” This guides all of our actions, from the advice and solutions we provide to clients, to how and where we invest, to the people that we hire. It’s a cornerstone of how we think about running our company. It seemed so appropriate to start at home with our SunTrust teammates to ensure that they were in the best shape they could be from a financial confidence standpoint. We did some surveys, as you mentioned, and discovered that our teammates weren’t as confident as we had hoped. It was an imperative as a purpose-driven company to do something about it. We worked with a company called 8 Pillars that we thought had the best employer-driven financial wellness program in the country. We decided to put some money behind this. We told all of our teammates we would contribute up to $1,000 if they participated in the program and if they started an emergency savings account. To date, that’s been a $13 million-plus investment. Our participation rate in this program has been off the charts. Typical programs have a 3% to 4% participation rate, but ours is in the 70% to 80% range. Now, our teammates are a lot more confident. Well over 75% of our