Dime Bancorp has hired a former National Westminster Bank executive to build up its small-business banking operation.
The New York-based thrift has tapped Donald P. Schwartz as executive vice president and general manager of small-business banking.
Mr. Schwartz said he plans to hire 25 underwriters and sales officers by next summer and focus on businesses with annual sales of less than $10 million.
"The thrifts that have survived are looking for opportunities to expand their revenue base, and the small-business market is a natural," said Mr. Schwartz.
Dime's move comes as other area thrifts increase small-business offerings to expand their revenue base beyond traditional mortgage banking.
Said Lawrence Toal, Dime's president and chief operating officer: "We have the branches and the connection to the small-business market, but in the past we just haven't offered the array of business products."
Mr. Schwartz said he plans to introduce a 24-hour approval process, streamline the underwriting process, and improve the cash management products - tasks he performed at the U.S. subsidiary of British-based Natwest.
Mr. Toal said the $20 billion-asset thrift will attract area small- business customers through its network of 85 branches centered around New York City. Dime has $40 million in small-business loans.
New York-area thrifts have been busily hiring bankers displaced by Fleet's purchase of the Natwest unit and by the Chase-Chemical merger.
Michael McManus, president and chief executive of $3 billion-asset New York Bancorp, a Dime rival, said thrifts venturing into small-business banking need expertise often found at banks. New York Bancorp, the parent company of Home Federal Savings Bank, hopes to attract small- business customers to its 30 branches in New York.
Mr. Schwartz said the recent consolidation could help thrifts attract new clients as small-business customers follow the business development officers who find new jobs, Schwartz said.
"The people here have extensive knowledge and vision," Schwartz said. "When you walk in you wouldn't feel 'O.K., I'm in a thrift,' which had some negative connotations, especially in the '80s."
