View From The Top
It’s good to be No.1 Bank of Hawaii CEO Peter Ho knows after Bankoh was named the best bank in the U.S. It’s a big job, overseeing $12.72 billion in assets and 2,400 employees
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ulatory environment has changed the tenor of banking, he tells us. It’s not your grandfather’s bank any more.
Although in Ho’s case, banking on the grandfather image isn’t a bad idea.
His legendary grandfather was self-made millionaire and real estate tycoon Chinn Ho. Considered the “Chinese Rockefeller of Hawaii,” he was the first Asian-American to become a director of a Big Five firm, manage a Hawaiian land holding, serve as president of the Honolulu Stock Exchange and lead the Hawaii Visitors Bureau.
Stuart T.K. Ho, Peter’s father, is equally accomplished as an attorney, politician, real estate developer, land trustee and hospital administrator. He is currently state president of AARP Hawaii.
So Bankoh’s leader comes from good stock, and thus is a person of interest among Hawaii’s third-generation business executives.
And in case you haven’t noticed, the stereotypical image of a silver-haired 50-something chief executive in a pinstriped suit is fading. Ho is proof that the top dog at a company no longer has to fit that mold to gain the trust of peers and shareholders.
Nineteen percent of the Fortune 700 CEOs are under age 50, up from 17 percent in 2001 and 2000, according to Chief Executive magazine.
Companies are attracted to younger CEOs in part “because they have the physical and mental stamina for the job,” the publication points out.
Young Ho has a different take on it. “Different age groups have different strengths and experiences,” he states. “Someone 65 has seen a third more in the ways of the world than someone who’s 45.”
(Do the math. He’s right.)
“Our success or failure pivots on how successfully we work with people, whether it’s customers, regulators, shareholders or employees,” he says. “If we can’t get the people aspect right, then it’s difficult to succeed overall.”
Ho says his management style is to drive an organization that’s “truly a meritocracy,” based on demonstrated intelligence and ability.
Fair enough. Seems the young CEO has an old soul when it comes to fundamentals.
But one can’t argue with fundamentals when considering the 113-year-old heritage of Bank of Hawaii in the Islands. Even as the overall banking industry faces consumer churn and a highly challenging regulatory environment, Bankoh is on a steady course.
Under his predecessor’s leadership, Bank of Hawaii delivered solid results and received multiple accolades for its financial performance, including being named by Forbes magazine as “America’s Best Bank.”
How will Ho sustain this distinction?
“The ranking reflects the quality of our people and our accounts (clients),” Ho responds. “You can’t be No. 1 standing still. You have to be changing constantly to stay ahead of the curve and meet customers’ needs with new products and services.”
But he knows that, “Just as quickly as you attain the No. 1 position, there are people vying to take your place.
“Banking is no different from any other industry,” Ho says. “One needs to focus on the quality of the franchise and value proposition for shareholders and customers. If you have a brand that supports both, that’s where you want to be. If you don’t, it’s awfully tough to make it.”
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He adds, “There were 14,000 banks in the country not too long ago. Today, there are 8,000 banks. That number could easily halve again.”
As for the vibrancy of Hawaii’s economy, Ho sees encouraging signs.
“We seem to have hit a level of stability and perhaps improvement,” he says. “But we don’t anticipate strong growth for a while, including in consumer loans.
“A common misconception is that you need to lend to grow the economy. It’s the other way around. The economy needs to grow to affect loan demand. In some ways, that’s the problem with the national economy. We find ourselves in the unusual situation of the Feds trying to spur inflation.”
If that’s not enough to keep Ho tossing in his sleep, there’s the ever-changing landscape of how folks handle their finances these days, which is wherever it is safe, convenient and customized for their needs.
Banks and financial services are dealing with ever more-empowered customers who want real-time awareness of what is going on in their finances. From mobile banking to “contactless” payment technologies, it’s a whole new world.
It is predicted by the research firm AC Nielsen that 90 percent of transactions in the U.S. will be cashless by the year 2020.
As for the APEC Economic Leaders Meeting in Honolulu Nov. 12 -13 next year, Ho sees it as a “tremendous opportunity to deliver a world-class event and showcase Hawaii’s attributes as a place where business, cultural and government exchange can occur.”
The event is expected to generate $120 million in economic impact for Hawaii, plus provide an opportunity for local businesses to reach emerging markets. APEC economies represent 44 percent of global trade and 40 percent of the world’s population.
“An event like this helps us coalesce as a community and work together to achieve something good for the long-term,” Ho says.
Spoken like a visionary leader of a diversified community with great promise.
Going up?
Hear Peter Ho’s recent presentation to BancAnalysts Association at wsw.com/webcast/baab10/boh/ with replays at boh.com.
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