Gordon Baird (Courtesy image)

A group of bankers in late November submitted an application to the FDIC and OCC, proposing to open a new national bank in Stamford. Nexos National Bank would focus on consumers in Westchester and Fairfield counties, with an eye towards technology-minded customers and  businesses. Gordon Baird, a former Citibank director and assistant vice president at State Street, is the CEO of the bank in organization and chairman of the board of directors. Kathleen Romagnano, a former executive at community banks in the area, is the proposed president and chief operating officer of Nexos National Bank.

Here is everything we know so far about the bank in organization based on its application and speaking with Baird.

Logistics

The group behind the bank is seeking $34 million in capital to launch, according to an advertisement in the Stamford Advocate. It is planning to set up its headquarters at 290 Harbor Drive in Stamford, which will consist of 3,500 square feet and include enough space for future growth. The bank is planning to set up its first branch on Washington Boulevard, also in Stamford, which will consist of roughly 1,900 square feet. In its application, bank organizers said a second branch is also being planned for Washington Boulevard. The branches will be in highly accessible areas close to retail and housing. When asked why the branches would be located so close together, Baird said the group is considering several optimized branch locations.

“We think proximity is not necessarily a redundant, depending on the neighborhood, communities and services that we plan to offer,” he said.

Technology-Driven

The main driver behind Nexos is technology. The group of organizers in their application said it plans to focus its resources on the technology-aware consumer and technology-integrated businesses. The group cites a survey from 2016 that found 40 percent of respondents had decreased their dependency on their bank as their primary financial services provider. Baird believes that trend is due to the banking industry’s inability to adapt quickly.

“Banking services are anchored in technology,” he said. “Our view is that there are material improvements that can be leveraged by using more modern technologies in banking than what many traditional banks use today. These technologies can be used to improve services, lower costs and result in better risk management for the organization.”

The bank intends to focus on businesses that seek higher, more efficient and less expensive transaction banking services, and improved access to credit. The bank also plans to have a technology committee that will make recommendations to the board with respect to the bank’s overall use of technology in its business strategy.

Services

The bank’s product mix will include checking accounts, savings accounts, cash management transaction accounts, consumer loans, business loans, real estate-related loans, online and mobile banking, deposit and transaction services and debit cards. Notably, the bank is planning to focus on local retail businesses, an area commercial bankers have been wary of due to the rise of services like Amazon and the lack of foot traffic in local downtowns. However, the bank is planning to hire people who know the market well and Baird said the group does not perceive retail lending as risky when done right. Organizers have also identified lending and service initiatives in its Community Reinvestment Act assessment area. These opportunities include participating in the Connecticut Housing Finance Authority affordable housing homebuyer program, or as a support organization for Bank on Connecticut, which works with community organizations to increase access to affordable banking products for the underbanked.

De Novo History in Connecticut

Nexos National Bank would be the second de novo in Connecticut in the last two years. In early 2017, a group proposed the creation of TNB Corp. in Norwalk, although TNB was seeking a state charter and had said it would be uninsured. Before that, the last de novo in Connecticut was Start Community Bank in New Haven, which formed in 2010.