The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System

Chairman Perlmutter, Ranking Member Luetkemeyer and members of the subcommittee, thank you for the opportunity to offer testimony today about the “Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System.” As a banker for over 34 years, this hearing could not be timelier given the changes underway in our industry. I am pleased today to speak not only on behalf of FirstBank and our 3,000 employees, but also on behalf of the American Bankers Association, which represents banks of all sizes and charters in every corner of the country, and the two million women and men who work at those banks and serve your constituents every day.

Founded in 1963, FirstBank has grown organically to more than 100 locations in Colorado and Arizona. We provide banking services to individual and business customers, and we are currently the largest bank headquartered in Colorado. We compete every day against banks and nonbanks, including credit unions. While our business is banking, everyone who works at FirstBank understands that our commitment to the communities we serve goes well beyond that. My bank, like many around the country, goes the extra mile in ways that many may not know. At FirstBank, our 300 bank officers sit on two to three nonprofit boards each, bringing support and leadership to hundreds of nonprofits in Colorado and Arizona. Ten years ago, we started a 24- hour online giving program to support nonprofits with a goal of raising $1 million dollars in 24 hours. In year one, we raised $8 million. Last year, when nonprofits were being stressed like never before, “Colorado Gives Day” raised over $50 million for more than 2,000 nonprofits in just 24 hours—showing that our “Banking for Good” tagline is more than mere words.

We also operate a multicultural banking center supporting more than 30 languages and cultures to ensure we meet the needs of all communities in our trade areas. In May 2021 we partnered with a local organization to seed a fund with $1 million that will provide down payment assistance grants for Black residents in our communities looking to buy a home. We know the level of Black homeownership in our markets is not on par with that of other members of our community, and we are putting our money and effort forward to change this outcome. I am also proud of the diversity of our team where more than half of our management positions are held by women leaders.

In addition to our commitment to the community, we are also an innovative bank offering mobile banking before many others and being the fourth bank in the nation to launch the Zelle person to-person payment network. Our motto is to meet customers where, when and how they want to be met. That coupled with our “Banking for Good” mission is what has enabled FirstBank to be a successful community bank.

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