Bank Transformation Unpacked: The Newtek Story Continues
By:
Tara L. Wean
Jeffrey P. Marsico
Benjamin T. Crowley
Guest: Barry Sloane – Chairman and CEO of Newtek Bank
Podcast Show Notes:
Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking topics. TMIB is available on the last Wednesday of every month here, and on Apple and Android podcast apps for your listening enjoyment. Join us on your commute, at your desk, or at home.
Topic: Bank Transformation Unpacked: The Newtek Story Continues
Our guest is Barry Sloane – Chairman and CEO of Newtek Bank.
This podcast episode of “This Month in Banking” features an interview with Barry Sloane, Chairman and CEO of Newtek Bank, discussing the company’s impressive financial performance, including a 6.20% ROA and 50% ROE. Sloane attributes this success to Newtek’s non-traditional banking activities, low expense ratios due to a lack of physical branches and traditional bankers, and investments in risk-adjusted assets with higher returns. The conversation also delves into Newtek’s journey transitioning into a bank holding company, with Sloane frankly addressing the market’s initial skepticism towards their unconventional model. He explains the strategic rationale behind acquiring a bank, emphasizing the value proposition offered to small and medium-sized business clients through their business portal, which provides tools and resources beyond traditional banking services.
The discussion further explores Newtek’s various business lines within the holding company and the bank, highlighting their referral system (“New Tracker”) that drives client acquisition through partnerships with other financial institutions and business service providers. Sloane details how Newtek has adapted to the evolving financial landscape, including rising interest rates and economic uncertainty, by maintaining strong capital ratios, focusing on cost leadership, and being selective with borrowers. Finally, the conversation touches on Newtek’s approach to technology, with Sloane expressing excitement about AI’s potential in automating mundane tasks and improving efficiency, particularly in data transfer and customer interaction monitoring, while also acknowledging the importance of human intelligence in setting up effective AI systems. Listen and enjoy!
Biography
Barry Sloane is the Chairman and Chief Executive Officer of Newtek Bank. He is also the President, Chairman and CEO of NewtekOne. Prior to joining NewtekOne, Mr. Sloane was a Managing Director of Smith Barney, Inc. where he directed the Commercial and Residential Real Estate Securitization Unit and, prior to that, he was national sales manager for institutional mortgage and asset backed securities sales. Mr. Sloane was founder and President of Aegis Capital Markets, a consumer loan origination and securitization business. Additionally, he was Senior Vice President of Donaldson, Lufkin and Jenrette, where he was responsible for directing sales of mortgage-backed securities and was a senior mortgage security salesperson and trader for Bear Stearns, L.F. Rothschild, E.F. Hutton and Paine Webber.
Relevant Links:
Barry Sloane LinkedIn
NewtekOne
Newtek Bank
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Watch for episode 113 of This Month in Banking to be released on Wednesday, May 28th, 2025, and a new episode on the last Wednesday of every month.
Thank you for listening!