Anthony S. Abbate: marketing is the key.

Anthony S. Abbate, is president and chief executive officer of Interchange Bank, Saddle Brook, N.J., and its parent company, Interchange Financial Services Corp. Since joining the bank in 1980, he has expanded assets from $77 million to $1.3 billion. During that time, he has acquired a reputation as a champion of the community banking approach. Among other things, he has given his employees the power to do "whatever is necessary and proper" to ensure the highest level of customer satisfaction.

Q. What role does marketing play in today's community bank?

A: Marketing is everything. In older to position yourself, your company in the marketplace, sell your products and services and promote your brand, marketing is the medium in which to deliver it to all to your prospective customers. With all of the competition in the banking industry, you need to have a comprehensive, integrated marketing program that encompasses all areas of your business, from advertising to website to in-branch promotions to public relations--this helps you drive business to your branches.

We are competing with the small and large banks and have a unique offering to customers. In order for them to know that, we need to get our messages to them--marketing is the key to doing that.

Q. What do you mean when you say that you "empower your employees to do whatever is necessary and proper to guarantee the highest level of customer satisfaction?"

A: I mean that I validate the decisions every representative of our bank makes when dealing with the customer. I give them the authority to make reputable decisions to provide fast, efficient and courteous customer service based upon the individual's need.

Q. Explain who your biggest competitors are. Are they larger banks?

A: The big banks are competitors because they have the resources to get aggressive on pricing and product delivery. If they want to be predatory on pricing, they can because they are big enough to sustain a loss leader. On the other hand, smaller banks are competitive in a different way--that strategy frequently is to acquire business and customers on terms and rates that are irrational, since their focus is on growing assets.

Q. Are community banks these days involved in the frenzy to open more branch offices? Why or why not?

A: Branching has certainly been the craze--and I see that trend continuing. As long as big banks continue their expansion, small banks will follow until they start losing money. Like all trends, they come and go.

Q. Is the branch office still the prime space where community banks deliver service to the customer?

A: Absolutely. The branches are still the number one place for delivering products, as well as personalized, friendly and courteous customer service. It's where we develop lasting relationships with our customers and where we keep our finger on the pulse of the local communities we serve.