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Kathleen Murphy
President and CEO, Massachusetts Bankers Association
Age: 60
Industry experience: 36 years
For the first time since 1997, the Massachusetts Bankers Association has a new leader, with Kathleen Murphy taking over for Daniel Forte, who retired at the end of October. Murphy started her career at a trade association in Washington, D.C., before joining Bank One in Ohio. After taking a job with the Ohio Bankers Association, Murphy returned to the Washington area and spent 13 years leading the American Bankers Association’s Community Bankers Council and then more than 20 years as head of the Maryland Bankers Association.
In her first few weeks with the Massachusetts Bankers Association, Murphy has been meeting – usually virtually – with members and stakeholders, keeping on top of the extended state legislative session, winding down the association’s fiscal year, all while focusing on the economic uncertainties facing banks and their customers.
Q: Why did you decide to join the Massachusetts Bankers Association?
A: Maryland’s state association is considered mid-sized in terms of the staff size, budget, the number of banks, etc. I had always admired and had so much respect for my predecessor, Dan Forte, and for the Massachusetts Bankers Association – really one of the premier associations in the country. I often thought if I had the opportunity to take my experience and my passion for the industry and move it to a larger platform, that would be an amazing opportunity, particularly because it was a part of the country my husband and I love. We’ve spent time boating in New England, and we have friends in New England. It was an incredible opportunity to be considered to succeed Dan.
Q: What are your top priorities as president and CEO?
A: I’m looking at them now as near-term priorities. Trade associations in general tend to be cyclical in terms of board meetings throughout the year, regular training and education programs for the industry and policy work at the state and federal level. There is a rhythm to it. I always enjoy observing and seeing that dynamic, and we’re in a near-term opportunity to do that.
The second priority is to be supportive of our talented team. We’ve got an amazing team of individuals who have a lot of longevity in the industry and with the association, so being supportive as they work to provide our legislative and regulatory representation, and member education and services.
The third is to continue to be engaged in influencing the positive outcomes related to the Paycheck Protection Program and other pandemic-related issues that are impacting banking on the state and federal level. We’ve had some calls between the association and our members with members of our congressional delegation, and we continue to stay front and center with them not only on the amazing work that the banking industry is doing to support their clients and their communities but also to talk about what more could be done at the federal level to help.
Q: What are your long-term priorities?
A: My focus long-term is on propelling the association forward though strong member engagement and a talented staff that enable us to be well-positioned in the years ahead to promote the strength and success of the Massachusetts banking industry and the communities our members serve. How we will do this is through proactive and effective representation on Beacon Hill and in Congress, a top priority of our members; offering exceptional and timely training and education programs and member services that give the 72,000-plus Massachusetts banking professionals the skills they need to serve their clients in a time of tremendous change; and being the public relations resource and voice for our industry on current and emerging priorities.
The association’s resiliency since its founding 115 years ago has been key to our ability to effectively harness the collective strengths of the Massachusetts banking industry to propel the industry into the future, and I look forward to building on that track record of success in the years ahead.
Q: What are some opportunities and challenges that you see for the banking industry?
A: When you think about technology, it is the great equalizer and certainly different in this crisis than it was back in 2008. We’re going to see the trends of digital acceptance continue. There’s a cost associated with that, which is a challenge, and I think that’s where an opportunity comes in with fintech partnerships. At the same time, there are significant challenges when it comes to technology because what we call Big Tech – Google, Amazon, payment systems – they are very real threats to the banking industry because of their sheer size and ability to mine customer information and data.
The ability to attract and retain the talent that businesses need continues to be a challenge, but in this world where more and more people are working remotely, it opens up opportunities to attract talent from outside of Massachusetts. So, somebody who doesn’t have to be physically in the commonwealth can be recruited for a technology position or a marketing position or other types of positions in the industry.
One of the things that we saw with the Paycheck Protection Program is that it caused businesses to think about their relationship with their bank in a way that perhaps many had never thought about before. I think that is a tremendous opportunity going forward for banks to continue to reinforce that bankers are there to serve their clients and that they’re there as advisers and as a resource.
Q: Have you found anything unique about the Massachusetts banking industry compared to other markets you’ve worked in?
A: First and foremost, there is an incredible camaraderie among bankers in the state, which is so exciting and refreshing to see. There’s so much that bankers don’t compete with one another on – maybe related to regulations, compliance issues – that they want to help each other on. There’s a lot of camaraderie in the industry, but I would say even more so here in Massachusetts.
Another thing that’s unique is the large number of mutual institutions in the state. Massachusetts has the largest number of mutuals in the United States, and the vast majority are state–chartered. They’re committed to their clients in general, as compared to publicly traded institutions that have those commitments to their communities but also have shareholders that they’re focused on.
Another one is how we work together on training and education programs. Banks’ commitment to keeping their employees trained and educated is definitely magnified here compared to what I’ve seen, maybe because of the large number of community banks. The training we’ve done over the last nine months has been all virtual, and we’re planning to continue that into 2021. I’m so proud of our team, because they have been able to pivot to get the platforms needed to make that a really, really meaningful experience.
Murphy’s Five Favorite Pastimes
- Boating
- Watercolor painting
- Irish music
- Sunsets
- Time with family and friends
