■ Banking
Continued From Page 26 $ 400,000 in donations for the NJ Pandemic Relief Fund .
Corporate responsibility and governance are core values of all the bank association members . In the wake of the national turmoil over the tragic death of George Floyd , McWeeney said NJBankers established a Diversity , Equity and Inclusion Council . It is formulating a series of webinars on how to recruit and maintain a diverse workforce , and why it is a competitive advantage . He said the association has also
Bankers expect the federal government to eliminate the obstacles that are preventing them from servicing cannabis businesses .
Photo : Getty Images / iStockphoto reached out to the black business community and the African American Chamber of Commerce to develop more partnerships . “ There is a lot of work to be done , but we feel we are making some progress ,” he said , adding that the banks are moving to recruit more people of color to their boards of directors .
McWeeney said his members will continue to analyze trends facing their industry . One of the biggest is the dramatic move to digital by all customers . “ All age groups like the convenience , especially young people .” He expects digital services will expand to accommodate the new forms of currency and alternative payment channels such as Venmo .
The migration to digital will result in fewer bank branch offices but he emphasized “ there are still going to be plenty .”
The branches will be smaller and provide more self‐service technology , he said , adding that over the past five years branch offices have dropped from 3,100 to 2,700 . Bank consolidations are also expected to continue . Ten years ago , there were 117 banks headquartered in New Jersey ; five years ago the ranks were reduced to 93 ; and now there are 61 . The consolidations are a nationwide trend . But McWeeney said it is more difficult for community banks to compete . Due to their size and scale , community banks are challenged by the cost of complying with regulations and the cost of digital conversion .
As the pandemic abates and CDC guidelines allow for more business openings , McWeeney said more bankers will be going back to their offices . But he expects some portion of the workforce will continue to work from home because it has proven to be efficient and effective .
In the coming year , McWeeney also expects the federal government will eliminate the obstacles that are preventing most banks from servicing the cannabis businesses . New Jersey has allowed medical marijuana for several years and recently legalized recreational marijuana use . While a few New Jersey banks service the fledgling business here under the guidance of the U . S . Treasury , McWeeney said federal action will clear the way for a new business line .
The association is also monitoring Gov . Phil Murphy ’ s administration for any progress in his plan to create a state bank . Since the governor unveiled the concept , the banking association has voiced its staunch opposition . McWeeney explained that if Gov . Murphy is concerned with access to capital , there are existing agencies , such as the Economic Development Authority and the NJ Housing and Mortgage Finance Agency , that can expand to serve more people without creating a bank that would compete with the private sector . McWeeney said his members are ready to provide their expertise to the governor on this issue .