Bangor Savings Bank Strengthens Community Ties with Digital Transformation

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding digital transformation. Opinions expressed in this article are of the individual authors and may not reflect the opinions of MeridianLink, Inc.

In this special eight-part series of the Banking Transformed podcast -recorded at MeridianLink^® LIVE! and featuring MeridianLink^® customers-industry leaders discuss their journeys, strategies, and lessons learned along their unique paths to digital growth.

At the heart of Bangor Savings Bank's strategy lies the belief that successful digital transformation doesn't have to come at the expense of community values. Janel Hartin, Senior Loan Administrator at Bangor Savings Bank, brings 25 years of banking expertise as we delve into how the bank is not only opening new branches in underserved areas but also expanding its digital footprint to meet customers where they are.

From streamlining lending operations to enhancing the overall customer experience, Bangor Savings has made significant strides - all while navigating risk management and staying true to its community roots. Janel shares insights on the bank's transition from paper-based processes to a fully digital experience, highlighting how these changes have accelerated loan processing and increased customer satisfaction. She also discusses the delicate balance between innovation and community connection, touching on topics such as risk management, employee training, and strategies to engage younger customers.

Here's a breakdown of the key points from the conversation.

Transforming Lending and Customer Relationships

Established in 1852, Bangor Savings Bank is a $7 billion community bank with 68 branches across Maine and New Hampshire. While the bank is deeply rooted in its local communities, it's also expanding its lending services to customers throughout New England and in regions like Florida and the Carolinas.

As Janel puts it, "We need to continue doing what we're doing, continue the connection, continue that community…and [continue] finding the ways that we need to meet our customers where they are." This commitment to community remains strong, even as the bank modernizes its digital offerings.

To better serve its communities, Bangor Savings Bank has fully embraced the digital era of lending. Janel shares how, with the help of MeridianLink's loan origination software (LOS) and MeridianLink^® Marketplace integrations like DocuSign^®,Bangor Savings transitioned from a handwritten application process to a fully digital platform in just two years. This transformation has revolutionized Bangor Savings' lending experience, streamlining workflows and allowing customers to apply for and close loans in minutes. And while visiting a branch is always an option, offering a consistently streamlined experience, the fully digital process empowers customers to complete everything they need from wherever they are.

Another key component of Bangor Savings' commitment to creating deeper customer relationships, is a shift away from indirect lending, which often leads to limited engagement. Instead, the bank prioritizes direct lending, leveraging its CRM system to maintain contact with customers and offer personalized solutions that go beyond just a single loan product.

Risk Management and Data-Driven Decisions

The bank's digital transformation hasn't just streamlined lending - it's also improved how Bangor Savings Bank manages risk. In today's uncertain economic climate, balancing loan growth with risk management is more important than ever. Despite slower loan demand and rising delinquencies, Janel explains how the bank has maintained a careful balance between acquiring new loans and mitigating risk.

One major step in this direction was the launch of the bank's in-house credit card program. Previously outsourced to a vendor, bringing these operations in-house gave Bangor Savings greater control over both risk and the customer experience.

The bank's business intelligence team plays a critical role in this process, collecting and analyzing data to identify trends in loan performance and customer behavior. Janel explains, "They work with our customers to help get them back on their feet, get on track, and that has maintained an ability to keep our delinquency rate a little lower and allows us to help that customer where they're at."

Janel also sees financial education as a critical component of the bank's strategy for customers and employees. By empowering frontline staff with the tools, they need to manage their own financial wellness, Bangor Savings Bank ensures they are better equipped to help customers on their financial journeys.

Automation and data analytics are also making it easier for the bank to process loans efficiently while keeping a close watch on potential risks. Janel highlights the impact of MeridianLink's automated actions and communication tools, which allow the team to quickly route files and make underwriting decisions with minimal manual intervention.

What's Next for Bangor Savings Bank?

Looking ahead, Janel is excited about the continued growth of Bangor Savings Bank's digital services and points out that meeting the needs of their younger market will be key to future growth. The bank plans to focus on cross-selling and providing tailored financial solutions to customers as their needs evolve, from credit cards and personal loans to mortgages.

Janel explains, "It's about seeing when customers need to refinance or consolidate for a better rate, and proactively offering them the solutions that will help."

By blending tradition with innovation, Bangor Savings Bank is not just modernizing its services; it's enhancing the very connections that make community banking special.

Listen to the full episode of the Banking Transformed podcast for more insights from Janel Hartin on Bangor Savings Bank's digital lending transformation.

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