🔒MacInnes’ cost-management makes Webster Bank more efficient

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When Glenn MacInnes joined Webster Financial Corp. in 2011, the company had just begun a network transformation aimed at cutting costs, overhauling branches and channeling more efforts toward digital services.

Today, MacInnes, Webster's executive vice president and CFO who spearheaded much of the bank's expense management strategy, says the numbers speak for themselves as to the outcome of those ongoing efforts.

Webster's efficiency ratio, which measures expenses as a percentage of revenues, has fallen and remained below 60 percent over the last nine quarters, down from 65 percent.

“His important contributions as CFO and as a member of the management during a period of rapid change have helped propel Webster among the highest-performing regional banks in the nation,” said Webster Financial Chairman and CEO Jim Smith. “His oversight of Webster's interest-rate risk profile has been skillful during a challenging period of historically low rates.”

One of the biggest challenges MacInnes said he and his team face is positioning the bank at a time when customer's needs seem to be ever changing.

“There is a shift in the way people bank with us,” says MacInnes. “Part of our profitability has come from allowing ourselves to operate more efficiently while responding to the way customers choose to bank – digitally, mobile, online – as well as when and where they bank.”

To that end, Webster has been focusing efforts on several initiatives. One is shrinking the size of Webster banking centers.

“Our Waterbury headquarters banking center was 11,000 square feet. We reduced it to 3,500 square feet,” MacInnes said. “With that savings, we can invest half into online products as well as mobile.”

While Webster's smallest banking center is located at the Scarsdale, N.Y. train station and tops off at 500 square feet, most of the company's 165 banking centers in the northeast remain in the 3,500 to 5,000 square feet range. Though for many that represents a reduction in physical size, MacInnes says it doesn't translate into a loss of jobs.

“The universal banking model includes staff training so that bank personnel can advise on all products. Staff members become less of a teller and more of a full-service professional,” he says.

Webster began implementing the universal banking model two years ago and MacInnes says so far the results are overwhelmingly positive.

“We have 3,000 employees in the company and for those in our banking centers, we're about halfway through the training to making them certified as universal bankers,” he says. “This program promotes profitability and presents an opportunity for employees to receive advanced training and increased engagement.”

In addition, Webster launched a sales education program that emphasizes customized application of a variety of bank products to address customers' needs.

MacInnes has contributed in other ways too. He spearheaded the effort to improve strategic decision making through the in-house development of a product profitability system that has enhanced product development, marketing, and incentive pay.  

In January, he executed the purchase of JPMorgan Chase's health savings account (HSA) unit, which included more than 800,000 accounts with over $1.4 billion in deposits and $185 million in investments under management. The deal pushed Webster Financial's HSA Bank unit into the forefront of a growing health savings account market, with over $4.7 billion in deposits and assets under management and a 16 percent market share.

MacInnes says that the combined consumer, commercial and HSA efforts have put Webster in an advantageous position at a time when such success is no guarantee.

“In an adverse rate environment, we have made a record net interest income of $163.5 million. We continue to manage expenses, all in response to this market, and continue to reinvest in businesses,” he says. “The universal banker model, together with our new sales incentive program, increased banking center sales productivity by 12 percent last year.” n

Glenn Macinnes

The Basics

Name of organization: Webster Bank

Title: Executive Vice President and Chief Financial Officer

Size of organization: 2,990 Webster bankers

Education: Bachelor’s degree in business administration from Susquehanna University; MBA from Monmouth University

Previous job(s): CFO of NewAlliance Bancshares in New Haven; a series of domestic and international positions at Citigroup, including CFO of Citibank (West) FSB, deputy CFO of Citibank North America and strategic planning for the International Retail Bank.

On the job

Guiding business principle: To help create and facilitate an environment of accountability. When the work environment is designed for accountability, it will flourish.

Best way to keep your competitive edge: I keep my competitive edge as a result of surrounding myself with the best people. I believe that Jim Smith and my associates at Webster Bank make me better every day.

Best business decision: Leveraging my prior business experience at a large international bank on a regional bank level, something I wish I had done sooner.

Worst business decision: When I was recruited by Citigroup, I hesitated as the role was for CFO of the operations group. I mistakenly thought this was too far back in the organization, but quickly realized this was the core of a banking organization. I needed this experience for my career to progress and to this day think of operations as the “unsung heroes” of every organization.

Goal yet to be achieved: Helping Webster achieve its potential of being the top performing regional bank as measured by financial performance, growth in key customer segments and customer satisfaction.

Personal touch in your office: Photo of my wife, Jill, and my parents with the 2003 New Jersey Devils Stanley Cup trophy

Personal side

City of residence: Orange

Favorite way to relax: Exercise, fishing (on the Long Island Sound) and music

Hobbies: My wife recently enrolled me in guitar lessons as she knew that I would enjoy the challenge and reward of a new hobby.

Last vacation: Enjoying the warm air in Naples, Fla. on the Gulf of Mexico

The car you drive: Audi S5

Favorite cause: Member of the board of directors of Wellmore Behavioral Health in Waterbury

Second choice career: My original career desire was to be a veterinarian.