The founder's commitment to lifelong learning and innovation helped to grow the bank organically from a startup to over $100B in total assets.
First Republic turned to HBS Executive Education to provide the leadership development and entrepreneurial mindset to power its safe, stable, organic growth.
Jim Herbert, First Republic Bank's chairman, CEO, and founder, established the company in 1985 with a clear vision: deliver exceptional, differentiated client service better than anyone else. That strategy has produced one of the most successful banks and wealth management companies in the country.
From one initial office in San Francisco, nine employees, and $8 million in capital, First Republic has grown to more than $105 billion in bank assets and $137 billion in wealth management assets with a market cap of over $16 billion as of June 30, 2019. One of the largest banks in the country, First Republic is also one of the most profitable. The company's stock has consistently outperformed that of its peer group banks and the S&P 500.
First Republic has succeeded by establishing and executing a client-centric business model also focused on credit quality, capital strength, and innovation to continually improve the client experience. First Republic's culture of service and teamwork, as well as its ongoing investment in technology, are the reasons its Net Promoter Score is twice the industry average.
Herbert understood that positioning a bank as a growth company required an institutional focus on innovation and entrepreneurial thinking. With that in mind, he has attended over 20 annual HBS Executive Education programs for CEOs and presidents since 1990. Each time, he returns with fresh ideas from the program-based discussions with faculty and other global leaders.
One of those ideas was a new strategic focus on reducing the burden of student loan debt. That insight led to a key business initiative: the launch of a very successful student refinancing program. By helping millennials reduce student loan debt, the bank can help them move more quickly to future financial goals, such as home ownership. The strategy has paid big dividends for the bank: Millennials now comprise one-third of First Republic's total consumer borrowing households, up from 12 percent in only three years. The bank's successful millennial strategy is a key driver of growth.
Herbert found his HBS experience to be so valuable that he sponsored his executive leadership team to attend. He believes that sharing a common experience, the excitement of new ideas, and business language empowers them to solve organizational problems more effectively as a collaborative team.
As a result, dozens of executives have attended the Advanced Management Program, General Management Program, and other leadership and governance programs. Through its commitment to lifelong learning and partnership with HBS, First Republic is developing its next generation of visionary leaders.
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