The uniqueness of a border bank

IBC Bank located along the border in Laredo serves by the motto, “We do more!” Dalia F. Martinez, executive vice president at IBC Bank said they strive to do more for employees, customers and the community. They also strive to do more when it comes to understanding changes in banking and regulations. Being a border bank, they must understand banking at not only state and federal levels, but international as well due to the bank’s strong international customer base.

“Something as simple as cash transactions come with a myriad of rules on limitations and regulations on how a foreign customer must conduct those transactions,” Martinez begins. “Wire transfers that go to Mexico require certain information versus a wire transfer traveling within the U.S. Also, if you’re a foreign customer, you can’t really have an overdraft because collection in Mexico is difficult.”

Martinez goes on to explain the difference in rules and requirements between the U.S. and Mexico can sometimes shock customers due to all the information required to onboard in the U.S.

“The economies of border communities are so integrated because of the rich cultural history and the dependance of how to conduct cross-border business. We like to say we are one community in two countries,” said Martinez.

Politics and regulations

The current political environment has brought some changes and challenges when it comes to conducting bank business.

“Politics affects everything and with border banking you must understand the politics of both sides of the border.” Martinez continues, “When the administration changes in Mexico, their policies change just like they do here in the U.S. As bankers, we must perform ongoing due diligence to keep up with what’s happening on both sides of the border.”

Politics doesn’t necessarily interfere with how the bank operates but it can determine the handling of customer transactions due to regulations. More regulations make it more cumbersome for the customer to get their money — whether those regulations are coming from the U.S. or Mexico.

Martinez said this is an issue customers on both sides of the border find frustrating. “That’s why we have all these unregulated technology companies popping up everywhere. You can transfer money internationally through one of those cash apps because they don’t have all the regulatory oversight that financial institutions have.”

She said she sees this as a huge challenge for financial institutions on both sides of the border. Money transaction apps like Zelle, Venmo, CashApp, XOOM and PayPal don’t have the regulatory oversight that financial institutions have. The general consumer may overlook or dismiss security due to the conveniency and quickness of these apps which is why they have become increasingly popular.

Solution to fighting regulations

Martinez said part of her work at IBC Bank is doing a lot of regulatory education. She said she has talked to folks in Washington, D.C. and sat in front of many people at the Capitol to further inform and enlighten legislators of the banking industries plight with these imposed regulations.

“Education is a big responsibility all bankers have because people in Washington don’t understand the unintended consequences of some of the regulations they introduce. They also don’t understand the consumer harm for the lack of regulation that some of these technology companies have.”

Martinez said there’s a lot of discussion about how banks make so much money, but what isn’t taken into consideration is the amount of money it takes to protect consumers from cyber attacks, unauthorized transactions, phishing and other threats customers could be exposed to. Many technology companies aren’t taking steps to protect customers, and that’s why she urges the banking industry to talk to our lawmakers with one voice.

Martinez suggests that companies who want to provide a financial service to a customer should have to follow the same set of rules and regulations that a financial institution must follow.

“We must continue to educate — that’s the only way we can make a difference and effective changes. The most important thing is to have a level playing field.”

Involvement in the community

All the IBC Banks run a United Way campaign that is matched by the bank. Martinez said IBC recently wrapped up a $1,000,000 fundraiser for MD Anderson Cancer Centers. IBC is matching this amount for a total contribution of $2,000,000.

Martinez previously served as president of the United Way of Laredo, Salvation Army Laredo, Webb County Children’s Advocacy Center and as a board member of the Laredo Medical Center as well as Make a Wish Foundation of Texas. She has testified at a congressional hearing and was applauded by Rep. Denny Heck (D-Wash.) for her strong testimony.

Martinez has been with IBC Bank since 1990 and has held numerous roles. Today her responsibilities include Corporate Bank Secrecy Act Officer, Compliance Executive, Corporate Operations Manager and Information Technology co-leader.

While Martinez enjoys all her roles, the one she values most is being a mentor for future IBC Bank leaders.