ABA Banking Journal 5/08 - (Page 30) COVER STORY Tom Frost, who today is senior chairman. (Four of Frost’s sons hold other posts in the Cullen/Frost organization.) “Dick Evans thinks like us, and he has the same principles,” says Frost, 80. “Having Dick Evans here is every bit as good as having family here.” Customer contact critical What Evans brings to this customer focus is himself, literally. He believes the weakness of megabanks is that the leaders, the Banking by relationships decisionmakers, don’t see customers. Part of the heritage, taken quite seriously “They’re not bad,” he says, “but they at Cullen/Frost, is an insistence that good can’t see what we can because we’re actubanking is not a matter of transactions ally looking people in the eye, dealing and “doing deals” piecemeal. with real customers. I don’t want to sit in “We don’t do business with anybody this office and think I understand. I want we don’t know, where there isn’t a natto go out and talk to real customers, to ural relationship,” says Evans. support our staff.” Evans says he gets out Echoing a long tradition at the comto make calls with Frost bankers at least pany, Evan puts it succinctly: “We’re in every six to eight weeks. the people business. Money comes in Indeed, this attitude of keeping contact business. we make tens and twenties, but the thing that with customers is formalized in many loans to people—to makes the difference starts right here in areas of the organizabuild long-term relaour own organization. It’s how we get tion. On the consumer tionships.” If that snippet from Frost Bank’s history sounds like something current along with each other. Only then can side, for instance, in an Cullen/Frost CEO Dick Evans said, it’s no surprise. Evans is steeped we relate to our customers.” effort instigated nearin Frost traditions. The quote, however, comes from Joseph Hardin While his ly a decade ago by Frost, third member of office is far Paul Olivier, group the Frost family to from the big vice-president and serve as the bank’s president (1926-1948). “Mr. banking floor at chief consumer Joe” was one of two sons of Col. T.C. Frost San Antonio banking officer, (right) to succeed the bank’s founder and first president. Tom Frost (far right), offiheadquarters, Evans Frost bankers cially, T.C. Frost IV, still serves as the is known for his fieldreach out regularcompany’s senior chairman. He folwork. ly to customers to lowed in the footsteps of “Mr. Joe,” his great uncle, who For more than a decade, see how a particular opened the Mexican market for the organizahe’s made it his yearend product is doing for tion. The Frosts often played a part in holiday practice to get out of them, or simply to Texas banking history: T. C. Frost, Jr., the bank and literally visit every see if they are happy with first successor to the Colonel, was an incorporator of employee in all 105 offices. service. good the Dallas Federal “I shake their hands, and tell them employees “It’s kind of a Stevie Wonder Reserve Bank. ‘thank you’ for the year and wish them a and listen to call,” jokes Pam R. Thomas, executive The bank has happy holiday,” says Evans. “That is very what the cusvice-president, marketing. “You know, ‘I been a Fed rewarding to me, because I do care about tomers’ needs just called to say I love you’. We can’t just member them as individuals and for what they are, you work throw products at them all the time.” ever since. have done for the company. Quite hard to fulfill those Through this and other efforts, Frost frankly, without them, we are nothing. needs. It works out. maintains a consumer household retenAnd so, if we can’t take time to spend You get a good return tion rate of 91%. some time with them and express that, for your shareholders. You’ve just Survival then and now well, then there would be something got to make sure you don’t focus on the Survival is a concept Evans is wellwrong with us.” money, but instead on the customer.” acquainted with. During the 1980s, when Another field effort concerns cusCullen/Frost’s business comprises even conservative Cullen/Frost felt subtomers and prospective customers. No 50% commercial customers and 50% stantial pain as the oil and commercial real hard sell for Evans. He sees the banker’s retail customers on the deposit side, and estate markets collapsed in Texas, he role as cultivating the customer relation- 85% commercial on the asset side. “So spent much of his time, essentially, as ship first, and then finding how the bank we’re both a retail bank and a business “chief workout officer.” can meet their needs. “Sales” isn’t a dirty bank,” says Evans. He says someone asked him a while word to him. But it’s a matter of nuance. This is reflected in its branches, which “We’re not product peddlers,” insists are expected to serve both markets and back if he hadn’t considered quitting, in Evans. “We’re in the business of building therefore tend to be larger than the aver- those black days. 30 MAY 2008/ABA BANKING JOURNAL relationships with customers, helping them to be more successful in accomplishing their objectives.” “Relationship banking” is a term much bandied about and much abused, confused, and defused. But Cullen/Frost executives are true believers in relationship banking when characterized along these lines: It’s not a matter of trying to be all things to all people, but, rather, being all the essential things to the people with whom you’ve decided to create a relationship with. Our words. But Evans concurs. “It’s often hard to explain someMeet the Frosts thing so simple “We’re not in the to people,” he money business. says. “If you We’re in the people have age branch. Newer branches have “Frost Rooms,” featuring Texas photos and mementoes, internet access, and more. Subscribe at www.ababj.com http://www.ababj.com
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