NewHavenBIZ

16 n e w h a v e n B I Z | S e p t e m b e r 2 0 2 2 | n e w h a v e n b i z . c o m By Michael Puffer A er 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 iden- tified, the bank has taken on two new executives to facilitate the new endeavor and a national market- ing 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 Mitch- ell, Liberty's executive vice president, general manager and chief digital offi- cer. "Less and less people are walking in and using physical branches. ey are using their iPhones, right? Or their iPad, right? Or they are using their desktop or whatever it may be. is is an opportunity for us to expand our existing footprint into a very specific niche." e 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 saturated personal banking sphere. "e gap we saw, the white space, is the small business market," Mitchell said. Other companies offer digital bank- ing services targeted at small business- es, 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 Philadelphia-based Brownstein Group for its marketing push, Mitchell said. e company has produced campaigns for brands in- cluding Inspira Health and TruGreen. It is also the company behind the "no mascot" marketing of NJM Insurance. Mitchell said radio, television and on- line 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 exec- utive 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 in- novation officer. Gunsallus had also led a couple of credit unions. at is where he first met Mitchell, who worked for a company that sold banking technology to Gunsallus-led credit unions. Mitch- ell said he hand-picked Gunsallus for his team. Liberty also announced the hire of Amy Apuzzo as vice president and dig- ital marketing manager. Apuzzo spent 12 years with digital banking service BM Technologies. e two are among 10 hires for the new digital bank. at staff will grow with business volume, Mitchell said. Unique offerings, careful planning Without the costs of brick-and-mor- tar branches, the digital bank will be able to offer better rates and tools and be able to deploy new products and services more swily, Mitchell said. In addition to deposits and loans, the new bank will offer a suite of inte- grated, easily-used business manage- ment applications, including digital ex- pense recording, electronic invoicing, and payment and project management, among others, Mitchell said. "ey started their business because they love to do the job they do," Mitch- ell said. "ey hate to do banking. … We can automate all of that banking stuff so in the end they get their cash faster. In the end it is all about cash flow for these guys." Mitchell said Liberty has signed an agreement with a network of ATMS that will allow its digital banking customers access to 55,000 machines across all 50 states. It hasn't yet been decided if there will be fees for access. Liberty originally planned to open its digital bank in 2021, but there were COVID-related delays and the bank wanted more time for research and development, Mitchell said. Research included surveys of more than 3,000 small businesses nationally and interviews with more than 300 companies, all aimed at determining their needs. Mitchell said the digital bank launch HBJ PHOTO | STEVE LASCHEVER Targeted Expansion With eye on small business growth, Liberty Bank readies debut of national 'digital bank' 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.

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