Driving Change in Banking: Innovation Meets Tradition

Discussion with Tiziano Pancher

In today’s fast-evolving financial landscape, individuals with diverse professional backgrounds are increasingly joining boards of directors, bringing fresh perspectives and innovative solutions. One such example is Tiziano Pancher, a mechanical engineer with international experience, who has been part of the board of La Cassa Rurale, a community bank in the Dolomites. In our recent conversation, Tiziano shared his journey from engineering to board governance, the unique challenges he faced, and the insights he gained from integrating engineering thinking into the world of finance. In this article, we explore his professional trajectory, the value of diversity in boardrooms, his approach to managing risks, and the evolving role of younger generations in banking leadership.

From Engineering to Board Leadership

Tiziano Pancher’s path to board governance is far from traditional. As a mechanical engineer specializing in material behavior, Pancher began his career in technical roles, later transitioning into sales and leadership positions within global companies such as Iveco. His work took him from his hometown in the Dolomites to Milan and eventually to Germany, broadening his perspective on international business practices. However, despite his global experiences, Tiziano felt a strong connection to his local community.

In 2008, driven by a desire to give back, Pancher decided to run for a position on the board of La Cassa Rurale, a community bank where each member of the bank holds a share and a vote in its operations. His goal was to inject new energy and fresh ideas into a boardroom that had long been dominated by local figures with more traditional mindsets. He succeeded, bringing his unique experience in large organizations and his broader international perspective to a local institution.

“I was the youngest on the board, surrounded by individuals who had been there for decades. I felt it was important to bring not just technical knowledge, but also a new way of thinking – one that balanced local values with the global strategies I had learned in my career”, Pancher explained.

Bridging Generational and Cultural Gaps

One of the most significant contributions Pancher brought to the board was his ability to bridge generational and cultural gaps. As the only member of the board with substantial international experience and foreign language skills, Pancher often found himself in discussions that required him to advocate for modernizing the bank’s practices. While many of the board members relied on long-standing relationships and local connections to make decisions – such as approving loans based on familial ties – Pancher encouraged a shift toward more strategic, data-driven risk management.

“The board’s decisions were often based on knowing a person’s family and their reputation. While this approach had served the bank for years, it became clear that we needed to also consider more objective measures of risk, especially as the world was becoming more interconnected and complex”, said Pancher.

This generational divide was not just in decision-making, but also in how the board viewed the future of banking. While older board members were hesitant to embrace new technologies and processes, Pancher, leveraging his engineering mindset, pushed for changes that would help future-proof the bank. His experiences working in Germany also helped him advocate for more structured, process-driven approaches, which were sometimes at odds with the more relationship-driven culture of his Italian colleagues.

Navigating Risk in a Post-Financial Crisis World

Shortly after joining the board, Pancher found himself helping to guide the bank through the aftermath of the 2008 financial crisis. The global economy was shaken, and La Cassa Rurale was faced with difficult decisions about how to manage its resources and maintain community trust during uncertain times. One of the bank’s key dilemmas was whether to proceed with a planned investment in its headquarters – a move that would require significant financial resources but could also send a strong message of confidence to the community.

Pancher’s approach to this challenge was rooted in his belief that the bank had a social responsibility to lead by example. “We had to make a calculated risk. The community looked to us for leadership, and if we pulled back, it would have signaled to everyone that it was time to hold back on investments. That could have led to a further downturn in the local economy”, he explained.

By advocating for this investment, Pancher demonstrated how community banks could use their unique position to inspire confidence and stability, even in the face of global uncertainty. His ability to balance the bank’s financial needs with its ethical and social responsibilities became a hallmark of his leadership on the board.

Integrating Technology and Engaging Younger Generations

One of Pancher’s key initiatives during his tenure on the board was advocating for digital transformation. Recognizing the growing importance of technology in banking, Pancher pushed for the implementation of new digital tools, such as mobile banking applications, to help the bank remain competitive in an increasingly tech-driven world. However, introducing these innovations was not without its challenges, particularly when it came to convincing older board members who were more resistant to change.

“Introducing digital solutions was more about changing mindsets than just adopting new technology. Many of the older board members were skeptical, but I felt it was critical for us to modernize if we wanted to attract younger customers and remain relevant in the future”, Pancher noted.

In addition to driving technological change, Pancher also spearheaded efforts to engage younger generations in the bank’s governance. He launched a program that allowed young people in the community to form their own sub-board, giving them a small budget and the freedom to manage specific initiatives. This not only provided valuable financial education to younger members but also helped identify future leaders who could eventually join the main board.

“The idea was to ensure that I wasn’t the only young person on the board. By creating this sub-board, we were able to bring in new ideas and perspectives while also preparing the next generation of leaders”, Pancher said. Several members of the sub-board eventually joined the main board, helping to ensure a smooth transition of leadership in the years to come.

Balancing Ethics, Financial Prudence, and Community Impact

Throughout his time on the board, Pancher was deeply committed to balancing the bank’s financial objectives with its ethical and social responsibilities. As a community bank, La Cassa Rurale faced constant pressure from larger institutions that offered more competitive rates and aggressive marketing campaigns. However, Pancher and his fellow board members were determined to maintain the bank’s core values of supporting the local community, even when it meant making difficult financial decisions.

“We couldn’t compete with the big banks on price or marketing, but we could offer something they couldn’t – trust and community support. Our role wasn’t just to make a profit; it was to ensure that the bank remained a pillar of the community, providing not just financial services but also supporting local initiatives and organizations”, Pancher reflected.

At the same time, Pancher and the board had to ensure that the bank remained financially stable. Nearly 50% of the bank’s profits were reinvested into the community, supporting local sports clubs, events, and other initiatives. However, during the financial crisis, the bank’s ability to distribute funds was stretched, forcing tough decisions about where to allocate resources. Pancher’s approach was to maintain a strong connection with the community while making prudent financial choices to ensure the bank’s long-term survival.

Advice and Key Takeaways

Tiziano Pancher’s experience on the board of La Cassa Rurale provides valuable lessons for anyone considering a similar role. His advice to new or aspiring board members is to approach the position with humility, patience, and a willingness to listen. “Understand the dynamics and context before trying to make changes and remember that everyone brings something unique to the table”, he emphasizes.

Pancher also underscores the importance of balancing ethical responsibility with financial prudence, especially in community-focused institutions. Whether navigating generational divides or advocating for innovation, his key takeaway is that being part of a board requires strategic foresight and a passion for contributing to the greater good. As Pancher says, “Always think two steps ahead, and remember that board service is about long-term impact, not just immediate gains”.