Hartford Business Journal

14 HARTFORDBUSINESS.COM | August 29, 2022 Liberty Bank Chief Digital Officer David Mitchell said the goal of launching a digital bank is to expand in other states without opening new branches. HBJ PHOTO | STEVE LASCHEVER Targeted Expansion With eye on small business growth, Liberty Bank readies debut of national 'digital bank' By Michael Puffer mpuffer@hartfordbusiness.com A fter more than a year of delay, Middletown-based Liberty Bank anticipates opening a digital bank in the first quarter of 2023. A target niche has been identified, the bank has taken on two new exec- utives to facilitate the new endeavor and a national marketing campaign is slated to launch in January. Operating as a separate brand but under Liberty's charter, the digital bank will offer online banking services tailored to small businesses across the country. "So, the goal is for us to expand into other states without opening up physical branches," said David Mitchell, Liberty's executive vice president, general manager and chief digital officer. "Less and less people are walking in and using phys- ical branches. They are using their iPhones, right? Or their iPad, right? Or they are using their desktop or what- ever it may be. This is an opportunity for us to expand our existing footprint into a very specific niche." The target market is businesses with less than $1 million in annual revenue and 10 or fewer employees, Mitchell said. As Liberty sized up potential niches, it decided against the already satu- rated personal banking sphere. "The gap we saw, the white space, is the small business market," Mitchell said. Other companies offer digital banking services targeted at small businesses, Mitchell acknowledged, but none with the suite of loans, credit lines and business management applications that will be available through Liberty's online platform. Marketing blitz Liberty is holding back the name for its digital bank until the marketing launch, but the moniker will make it clear the focus is on small business. Liberty has hired Philadel- phia-based Brownstein Group for its marketing push, Mitchell said. The company has produced campaigns for brands including Inspira Health and TruGreen. It is also the company behind the "no mascot" marketing of NJM Insur- ance. Mitchell said radio, television and online commercials have been completed and are ready to run. Small business "influencers" have been recruited to push out the offering on social media. Liberty hired Mitchell two years ago to lead innovation efforts at the nearly 200-year-old bank with 53 branches and $7.5 billion in assets. He came with deep experience as a fintech executive with a successful track record in digital banking. On Aug. 10, Liberty announced the hiring of Harry Gunsallus as senior vice president, digital strategy officer and chief operating officer of digital banking. Gunsallus will oversee digital strategy, build and maintain fintech partnerships and develop a suite of products to support the new digital bank. Gunsallus comes from BankSouth in Georgia, where he served as chief innovation officer. Gunsallus had also led a couple of credit unions. That is where he first met Mitchell, who worked for a company that sold banking technology to Gunsallus-led credit unions. Mitchell said he hand- picked Gunsallus for his team. Liberty also announced the hire of Amy Apuzzo as vice president and digital marketing manager. Apuzzo spent 12 years with digital banking service BM Technologies. The two are among 10 hires for the new digital bank. That staff will grow with business volume, Mitchell said. Unique offerings, careful planning Without the costs of brick-and- mortar branches, the digital bank will be able to offer better rates and tools and be able to deploy new products and services more swiftly, Mitchell said. BY THE NUMBERS Liberty Bank $7.5 billion Total assets $1.9 million First quarter net income $81.2 million 2021 net income 173,335 Customer households, including business and personal banking 53 Operating offices Source: Federal Deposit Insurance Corp., Liberty Bank

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