Walking the Line of Purpose, Profit and Innovation in Banking
How one bank has blended human and digital to empower creators.
Amidst an environment of the formation and consolidation of large banks, Aaron Dorn envisaged the creation of a modern, boutique bank based in Nashville, Tennessee. The vision for Studio Bank was based on a differentiating factor of being “uncommonly modern and surprisingly human” in the financial services industry.
In 2018, Studio Bank was the first de novo bank to open in Nashville in over ten years, and it quickly drew local support. Aaron Dorn, President and CEO, surpassed his capital raise goal of $40 million, and the bank attracted over 85% of local investors. In 2020, Studio surpassed its estimated goals by closing the year with a $9.5 million capital raise and nearly $435 million in assets. This was an impressive year considering the global pandemic and local competition. Still, Studio can attribute its prosperity to its social, membership-based approach to banking and a blended focus of modern technology and hospitality.
Its success and record growth can be ascribed to the way that Studio offers the best of both worlds. It provides customers with the combination of a large bank’s up-to-date technology and seamless user experience with a local bank’s community-centric focus and attentive customer service.
Blending Community And Creators
Nashville is the capital of country music with attractions like the Grand Ole Opry House and the Country Music Hall of Fame, and Studio Bank has a convenient location just minutes away from the energetic activity of Broadway. If you stopped by Studio, you would be welcomed with an employee-curated Spotify playlist and a bright mural of their mascot, the French Bulldog, done by a local Nashville artist. It is “the bank for Nashville’s creators” — which Nashville is full of.
Studio is a welcoming place for any type of creator (builders, entrepreneurs, songwriters, coders, etc.). The bank wants to help improve the financial wellness of creators so they can hone their craft and focus on creativity. Studio Bank is also a purpose-driven bank. Its sole focus is not on returning profit but on authentic actions and putting its customers first.
Studio’s team exemplifies their commitment to the community in various ways, and one of their most impactful methods of supporting creators is the Studio Women’s Collective. The group connects over 600 female leaders and entrepreneurs in the Nashville area. Members collaborate on projects, gather monthly, and network across various industries. The Women’s Collective events are back in person, but they also held virtual events throughout the pandemic. These events included a tour of the National Museum of African American Music to celebrate Black History Month and hearing from the CEO of a women-run, ethical fashion brand.
In the past, Studio also hosted local children for Financial Literacy Month. The kids toured the vault, learned how money is made, and participated in financial education activities. Studio’s involvement in the community creates a more informed and financially confident future for Nashville.
Opportunities and Outlook
Studio is a perfect example of modern bank marketing that prioritizes purpose and mission, integrates brand early in its story, and builds content that clearly connects to that unifying brand experience. Many financial institutions do the opposite: the company is founded on capital raises and products with an undifferentiated brand or purpose. After a few years of growth, the bank or credit union usually decides it’s time for a change and tries to develop its overall mission and purpose at that point.
“We want to be a bank for Nashville’s creators. And I’m not saying creatives because that could be exclusive. It’s creators…people who are creating a better healthcare system, people conceiving of something and trying to go out and make it happen, and they need capital to do that…And they need a place to safeguard the fruit of their creativity in a way that is well-managed and safely held. That’s what a bank does.”
-Aaron Dorn, Member Feature, Tennessee Bankers Association
Behind Studio’s brand and mission sits a well-run bank with commonly profitable community bank product segments. Mortgage has fueled asset and profit growth recently, but in order to expand operations and build a more diverse, inclusive financial services company, Studio’s brand experience will face new challenges in the years to come. Better lead management, digital customer generation, and diversification of products are all areas where Studio’s growth strategy should take them next. More consistent content and reach into communities that continue to expand across Greater Nashville will unlock new opportunities. And deepening commercial deposit relationships will solidify long-term strength. The great news: this community bank laid the groundwork from the very beginning, something not all financial institutions can say they did effectively over the last two decades.
Image courtesy of Urbanite Nashville and stats sourced from Nashville Post
