Sovereign Bank: Forging a local identity
by Glenn RittJack Meehl and Jennifer Dooling not only have the challenge of introducing Sovereign Bank’s brand to a crowded marketplace on Cape Cod, but also of eradicating what was perceived as ineffective service by Compass Bank, which it acquired three years ago.
What they bring is intimate knowledge of the Cape and Southeastern Massachusetts, careers of engagement in their communities and a management structure that encourages regional executives to combine the mega bank’s wide and deep services with nimble responses to the very local needs of individual customers.
“We have the opportunity to put our signature on our region, and that is a very important distinction between Sovereign as compared with other banks [with national footprints],” said Meehl, who was named regional president in January 2006 and is headquartered in Plymouth. One of his first moves was to hire Dooling from Citizens Bank to manage the Cape.
Since acquiring Compass, Sovereign lost its Cape deposit market-share position to Rockland Trust between 2005 and 2006 – but that was before Meehl assumed responsibility for the region.
“2006 was a building year; in 2007 we will continue to grow by determining what the best opportunities are and where we need to place branches,” said Meehl. “The challenge is to deliver a wide array of Sovereign services and massage it at the local level.”
Meehl hopes he can manage with the same principles he brought to local banking during the majority of his career in Plymouth County, but without the limitations that come at the community level. “The constraints I had when working with community banks had to do with limited resources. With a super-regional bank, it’s about independence and autonomy.”
On that front, he views the glass as half full. “From a philosophical standpoint, I can concentrate on the customer now without worrying about product development or backroom operations – the activities that detract from delivering service and being part of the community. So far, folks are a little surprised. They assumed Sovereign would be just another super-regional bank.”
Meehl took over at a demanding time. Residential lending activity has declined along with the housing market. Consumer deposits are shrinking for all banks as the reviving stock market lures money from more secure savings accounts and CDs. The Internet has required banks to invest heavily in technology – while placing almost every institution on a more even and competitive playing field.
Consequently, commercial lending has never been more paramount for Sovereign.
“For small to medium-size businesses that are price conscious, we offer free business checking to online banking. We have experts in every field from real estate development and construction to health care and nonprofits. Our niche is not just the diversity of products, but the knowledge of our staff,” said Meehl.
He recently hired an executive to serve as liaison between commercial lending customers and six traditional loan officers in the region. “Branch managers get pulled in various directions, so having a specialist just to work with the small business customer on the credit side is critical,” said Meehl.
“A lending decision is labor intensive. There is a scoring process in place. But, inevitably, it comes down to the loan officer as a person who makes the decision; not a number or a score and not somebody sitting in a back office elsewhere,” he emphasized.
Business loans made at the regional level are primarily less than $500,000; they average about $50,000 at the branch level.
Among his most important priorities in 2007 is organizing Sovereign’s branches after careful evaluation since the Compass acquisition. The bank is closing its East Harwich branch to focus on its close-by locations in Chatham and Dennis. It also is consolidating branches in Hyannis, leaving its Route 132 location to concentrate on its North Street site closer to downtown.
Money saved through this consolidation likely will be used to expand into other parts of the Cape where Sovereign lacks branches.
The bank recently also underwent some layoffs, but the Cape escaped virtually all the impact, with only the loss of several back-office personnel.
At the same time, Sovereign has greatly increased its visibility and accessibility across the Cape by its recent initiative to place branded ATMs inside CVS pharmacies. “This is an important partnership. Where we don’t have branches, we can provide access for cash and other banking activities,” he said. “For any business to be successful, we must be on the top of people’s minds. It is mind-share versus market-share.”
No matter how pervasive Sovereign is with its ATMs, Meehl underscores the importance of connecting face to face. That is why he places so much importance on sponsorships, networking and connections with community nonprofits throughout Plymouth and the Cape.
“One of our philosophies is to provide as many products as possible – one-stop shopping, if you will,” said Meehl. “Some incremental products don’t necessarily do well standing on their own. But when we put it all together, they represent value. You may not be able to make a comfortable living selling ties, but if they are sold along with suits and shirts, it adds incremental revenue.”
Meehl also underscores customer service, which he defines as “knowledgeable employees who really enjoy what they are doing.”
Then there are advancements in technology, for which a large bank such as Sovereign is well positioned. It was among the first banks in the market to offer remote check deposit for businesses.
He sees the Internet not only as a boon for customers, but also for the bank’s ability to be more productive. “We are relying on Webcasting so employees can remain in their home offices and avoid travel. It enables you to multitask. Twenty years ago, I would go out to meet someone and come back to a pile of telephone messages. The time to respond to a customer was so lengthy. Now, I can go to my laptop, call up my e-mail and reach everyone almost immediately,” he said. “It not only has made us more efficient from a business standpoint, it lets us deliver better service.”
Published in Cape Business May/June 2007
Glenn Ritt Glenn Ritt is editor and co-publisher of Cape Business Publishing LLC. He is the former publisher of Cape Cod Community Newspapers and editor of The Bergen Record in New Jersey. 
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