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New Kid on the Block
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Jeffrey Sattler, is president of NUVO Bank located at One Monarch Place in Springfield and can be contacted at (413) 787-2702 or jsattler@NUVObank.com.
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The need for a new bank, By Jeffrey Sattler
Why do we need another bank in Western Massachusetts? That's the typical question asked when approached to invest in a start-up bank here in Hampden County.
Those who see the need range from single-owner small family businesses to fourth-generation family businesses with sales in excess of 500 million dollars. It is not the size of the company, but the investment they have made in our region, because, like the name of this new bank, NUVO Bank & Trust Company (in organization), they see a common need to do their banking when and where they do business with loan decisions made by local people.
NUVO investors recognize the ever changing banking climate where two banks in our community hold the largest percentage of market share. These organizations are either headquartered in other parts of the country or, worse, outside the country! Yes, the climate is changing even with our 100 year old "thrifts" located in West Springfield, Westfield, Chicopee and Springfield. These 100 year old institutions have recently been forming holding companies and are successfully being converted to publicly traded companies. NUVO founders, organizers and investors see the need for a new local bank and are here to assist in fueling the continued growth in the local economy.
The Tools to Compete
There are approximately 18,000 businesses in Hampden County. NUVO Bank's business plan requires that it access less than 2 percent of that market to exceed the three-year projection submitted to the Massachusetts Commissioner of Banks. To meet that projection, NUVO has technology and expertise on its side.
NUVO Bank boasts a local and experienced management team with a combined experience of one-hundred-and-thirty years. As a start up, they have the opportunity to create a new banking culture designed to exceed customer expectations by utilizing a technology product platform as sophisticated as that of any existing bank.
Check Clearing for the 21st Century Act (referred to as Check 21) was signed into law in October, 2003, and became effective a year later. Check 21 is designed to foster innovation in the payment system for all banks. Currently, most banks require customers to make deposits in person using a "paper check." This time-consuming process will be a thing of the past. Through remote deposit capture, also known as digital deposit or image capture, a business can make deposits electronically right in their office. The technology provides both the bank and its clients with a higher level of efficiency and cost savings.
NUVO Bank is at an advantage because it does not have dated, inefficient operating systems. As a result, NUVO will be able to deliver creative personal and business cash management solutions to all clients regardless of their size while remaining competitively priced because of lower overhead.
Western Massachusetts does not need a new bank if it will be like the other banks, those that have been acquired by an out-of-state institution or those who have outgrown the market they came from. With a three-year business plan and a goal to establish market share and achieve profitability, NUVO Bank is designed to be unique. Free of influences or interests from outside Western Massachusetts, NUVO Bank will incorporate new technology to offer a full menu of services to the stockholders, depositors and borrowers who live and work here.
Jeffrey Sattler, is president of NUVO Bank located at One Monarch Place in Springfield and can be contacted at (413) 787-2702 or jsattler@NUVObank.com.
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