From the heart of Wausau, Wisconsin, emerges an institution that redefines community banking in the digital age. River Valley Bank, now known as Incredible Bank, isn’t just your typical local bank. This financial powerhouse is a Small Business Administration (SBA) lending leader, boasts a significant national online presence, and has carved a niche in high-end recreational vehicle (RV) financing. What truly sets them apart is their commitment to customer care, exemplified by staff training to assist clients with dementia. This unique blend of innovation and community focus has fueled an impressive annual growth rate of approximately ten percent.
This remarkable success story is the driving force behind the bank’s strategic name change to Incredible Bank. According to Todd Nagel, CEO of the $1.35 billion institution, this transformation underscores the enduring relevance of community banking in today’s evolving financial landscape. Incredible Bank serves as a testament to Nagel’s assertion that community banks can not only survive but thrive by embracing change and strategically adapting to the modern financial sector. Let’s delve into the strategies that Incredible Bank employs to achieve such incredible growth and recognition.
From Wisconsin Roots to National Reach: The Incredible Bank Journey
Rooted in Wausau, Wisconsin, River Valley Bank established itself as a cornerstone of the local community. As a traditional community bank, its initial focus was on serving the financial needs of local residents and businesses. However, the leadership team, under the guidance of Todd Nagel, recognized the shifting tides in the banking industry and the burgeoning potential of online financial services. This foresight led to the groundbreaking decision to extend their reach far beyond Wisconsin’s borders and establish a national presence, ultimately culminating in the Incredible Bank we know today.
Pioneering Digital Banking: The Launch of IncredibleBank.com
In 2007, Todd Nagel, then serving as COO of River Valley Bank, observed the meteoric rise of online-only banks. This observation sparked a pivotal question: “If these online entities can attract deposits nationwide simply with a website, why couldn’t a Wisconsin-based community bank do the same?”. This innovative thinking led to the inception of incrediblebank.com as a division of River Valley Bank.
However, venturing into the realm of online banking was not without its challenges. In the nascent stages of digital banking, regulatory frameworks were still developing. Nagel and his team faced the task of educating both local and federal regulators about their vision for a digital expansion. Their persistence and pioneering spirit ultimately paid off in 2009 with the successful launch of incrediblebank.com.
Overcoming Hurdles and Regulatory Navigation
Launching an online bank division in 2009 required navigating uncharted regulatory territory. At the time, online banking was still a relatively new concept, and established regulations were primarily geared towards traditional brick-and-mortar institutions. Incredible Bank‘s team had to proactively engage with regulators, explaining their business model, demonstrating their compliance measures, and ensuring they met all necessary legal and security requirements for operating a digital financial platform. This proactive approach and commitment to compliance were crucial in gaining regulatory approval and paving the way for their online expansion.
Early Success and Market Validation
The launch of incrediblebank.com proved to be an immediate success, exceeding initial projections. “It exceeded expectations right away,” Nagel recalls. This early triumph validated the bank’s strategic decision to embrace digital banking and demonstrated the national appetite for the services a community bank could offer online. However, this initial momentum was soon tempered by unforeseen economic headwinds.
The economic downturn that followed shortly after the launch of incrediblebank.com presented significant challenges. For several years, the focus shifted back to stabilizing and maintaining the core business of River Valley Bank. As a result, the burgeoning online division, incrediblebank.com, had to take a backseat as resources were directed towards navigating the economic crisis and ensuring the stability of the traditional banking operations.
Strategic Diversification: Fueling Growth Through Niche Lending
As the economy began to recover and stabilize around 2014, Incredible Bank strategically shifted its focus towards diversification to mitigate risks and unlock new growth opportunities. Having experienced the vulnerabilities associated with over-reliance on commercial real estate lending during the downturn, Nagel spearheaded a move to diversify the bank’s lending portfolio.
This strategic pivot led Incredible Bank to explore niche lending markets, capitalizing on emerging opportunities and Nagel’s personal passion for recreational vehicles. This diversification strategy proved to be a masterstroke, propelling Incredible Bank‘s growth trajectory and solidifying its position as an innovator in the community banking sector.
Tapping into the Motorhome Market
Nagel’s personal interest in motorhomes played a key role in identifying a lucrative niche market. After a family trip to Yellowstone National Park in a motorhome in 2005, Nagel developed a deep appreciation for the RV lifestyle. Conversations with motorhome dealers revealed a significant gap in financing options for high-end motorhomes, particularly those exceeding $400,000. Incredible Bank seized this opportunity, introducing specialized motorhome loans with a guaranteed 48-hour application turnaround. This swift and efficient service, catering to a previously underserved market, quickly established Incredible Bank as a leader in high-end RV financing.
SBA Lending Prowess
Building on the diversification strategy, Incredible Bank further expanded its lending capabilities by bolstering its SBA lending division in 2018. Recruiting seasoned SBA lending professionals to complement the existing team, Incredible Bank significantly enhanced its capacity to support small businesses. This strategic investment yielded rapid results. By the last quarter of 2018, River Valley Bank, soon to be Incredible Bank, ranked among the top 25 most active SBA 7(a) lenders nationwide, demonstrating its commitment to fostering small business growth and contributing to economic vitality.
To effectively market its diverse loan products, Incredible Bank cultivated a robust referral network. Furthermore, its dedicated loan officers actively engaged with potential clients by participating in trade shows and industry conferences across the country. This proactive outreach and relationship-building approach played a vital role in expanding Incredible Bank‘s lending footprint and establishing its reputation as a reliable and accessible lender.
Unifying Brands, Amplifying Impact: The Rebranding to Incredible Bank
The strategic diversification and successful expansion of incrediblebank.com led to a remarkable growth trajectory, outpacing the growth of the traditional River Valley Bank branches. Incrediblebank.com attracted deposit customers from all 50 states and lending clients from 42 states, demonstrating its national appeal and reach.
This parallel growth, however, presented operational complexities. Employees were increasingly tasked with navigating between two brands, even though both entities offered essentially the same products and services, and shared similar customer demographics in terms of consumer and business accounts. Recognizing the need for synergy and brand clarity, management initiated a strategic planning process in 2016 to merge the two entities under a unified brand.
The decision to consolidate under the Incredible Bank brand was driven by a straightforward rationale: brand differentiation and future market positioning. In Wisconsin alone, five other banks included “river” in their names, creating potential brand confusion and hindering unique brand recognition. Incredible Bank, on the other hand, offered a distinctive and memorable name that resonated with the bank’s innovative spirit and ambitious growth trajectory.
Why “Incredible Bank”?
The name “Incredible Bank” was chosen to encapsulate the bank’s extraordinary journey, its remarkable achievements, and its forward-looking vision. It reflects the bank’s commitment to providing incredible service, offering incredible products, and achieving incredible results for its customers and stakeholders. The name change was more than just a cosmetic alteration; it was a strategic rebranding initiative designed to solidify the bank’s identity, enhance its market presence, and communicate its unique value proposition to a national audience.
Customer-Centric Communication During Transition
The dual-brand campaign, announcing the transition to Incredible Bank, was launched in early April 2019 with a carefully orchestrated communication strategy. This included a video message and a personal letter from CEO Todd Nagel to all customers. Both communication pieces emphasized that while the name was changing to Incredible Bank, the ownership, management, and commitment to customer service remained the same. This proactive and transparent communication was crucial in reassuring customers and ensuring a smooth brand transition.
The customer response to the rebranding announcement was overwhelmingly positive. The few negative reactions were met with proactive engagement and a commitment to better communicate the bank’s story and rationale behind the name change. Nagel emphasized the bank’s dedication to ensuring no customer felt left behind or upset by the transition, underscoring their unwavering customer-centric approach. “We don’t want to have one customer leave us or be upset because we’re changing our name,” he stated.
The Future of Incredible Banking: Growth, Technology, and Community
Todd Nagel’s vision for Incredible Bank is to sustain a minimum annual bottom-line growth of 10%. To achieve this ambitious goal, he remains committed to diversifying revenue streams and adapting to the evolving financial landscape.
While acknowledging the significant growth potential of online banking, Nagel emphasizes that “Incredible Bank‘s golden goose is still the community markets.” He believes that community banks that aspire to thrive in the future must strategically focus their efforts, excel in select areas, and adapt to technological advancements. For instance, Incredible Bank made a strategic decision to reduce lending for investments in original equipment manufacturer (OEM) equipment, recognizing that manufacturers often provide their own financing options, allowing them to focus on core competencies and higher-yield opportunities.
Balancing Digital Expansion with Community Roots
Incredible Bank‘s success lies in its ability to effectively balance digital expansion with its core community banking values. While embracing technology to broaden its reach and enhance efficiency, the bank remains deeply rooted in its commitment to personalized customer service and community engagement. This hybrid approach, combining the convenience of digital banking with the relationship-focused ethos of community banking, positions Incredible Bank for continued success in a competitive market.
Tech-Savvy Community Banking
Embracing technology is paramount for community banks seeking to remain competitive. Nagel points out that declining technology costs are leveling the playing field, enabling banks of all sizes to leverage technology to enhance their services and reach. Incredible Bank exemplifies this tech-savvy approach by utilizing digital platforms to expand its market reach, streamline processes, and offer convenient online banking solutions, while simultaneously maintaining a human touch in its customer interactions.
Unwavering Customer Commitment
Despite its national reach and technological advancements, Incredible Bank remains steadfast in its customer-centric approach. Unlike larger, more impersonal institutions, Incredible Bank prioritizes direct human interaction. Employees answer phone calls directly, bypassing frustrating automated voicemail systems, and actively listen to and address customer concerns.
Incredible Bank‘s commitment to customer care extends to specialized services tailored to meet the unique needs of its diverse clientele. Recognizing the increasing prevalence of dementia, River Valley Bank, now Incredible Bank, implemented a comprehensive training program to equip staff to effectively assist customers affected by dementia. At each branch, designated employees are trained to provide patient, hands-on support, working at a slower pace and communicating with family members or caregivers when authorized. This compassionate and inclusive approach underscores Incredible Bank‘s deep-seated commitment to serving all members of its community with dignity and respect.
Conclusion: Lessons from an Incredible Community Bank Success Story
Incredible Bank‘s journey from a Wisconsin community bank to a national success story offers valuable lessons for community banks navigating the complexities of the modern financial landscape. By prioritizing customer needs, embracing strategic innovation, leveraging technology, and focusing on niche markets, community banks can not only compete but thrive in an increasingly competitive environment. Incredible Bank stands as an inspiring example of how a community-focused institution can achieve incredible growth and make a significant impact by staying true to its values while adapting to the evolving needs of its customers and the broader market.
