Episode Details

Why would someone want to start a De Novo bank? If you wanted to, how would you go about it? What is the process? This episode tries to answer these questions. First, if you want to start a De Novo bank focus on the “why.” What is a compelling customer problem and how will you solve it? What is your niche? Why would a customer switch to your bank? A good example is Bird-in-Hand Bank in Lancaster, PA. This bank was built to specifically serve the Amish community. Another consideration is local community relationship banking versus national product-centric fintech platform. Let the “why” drive everything. Second, If you want to start a De Novo bank you should follow these 7 steps. 1) Team and Governance, 2) Seed money, 3) Choose the niche, 4) Three-year business plan, 5) Choose charter type and file, 6) Raise capital, and 7) Build infrastructure and tech. This episode reviewed two blog posts from PCBB titled “De Novo Formation Part 1: Start with the Why” and “De Novo Formation Part 2: Executing the how.” Links to both blog posts are included below.

Link: De Novo Formation - Part 1: Start with the Why

Link: De Novo Formation – Part 2: Executing the How