Cape & Islands News

An interview with Dorothy Savarese, CEO of Cape Cod Five

CEO of the Cape's second-oldest bank on its relationship with the Cape Cod community

Interview by John Foster

Cape Cod Today met with Dorothy Savarese, President and CEO of The Cape Cod Five Cents Savings Bank to discuss the Bank's partnership role with its shareholders, employees and the larger community, including its work with the Cape Cod Chamber of Commerce. In June, Ms. Savarese was named Chairman of the Board at the Cape Cod Chamber's annual meeting. The Cape Cod Five is the Cape's second-oldest and largest independent bank.

Cape Cod Today: Congratulations on your new appointment. We see that the Cape Cod Five and the Cape Cod Chamber of Commerce work closely together.

Dorothy Savarese. Photo courtesy of Cape Cod Five.

Dorothy Savarese: Yes! Both the Cape Cod Five and the Chamber are committed to the strengthening the economic viability and improving the lives of Cape Cod residents. For the Chamber, right now, our top four priorities are public policy; strategic economic planning; the Visitors' Bureau and Member Services. Our four 'key areas' are Water, including drinking water, beaches and tourism; Transportation; Environmental and Economic Development.

CCT: It's hard to miss the new storm drains and sewer mains being installed everywhere from Barnstable District Court to Route 28 in Chatham.

Savarese: The Conservation Law Foundation (CLF) lawsuit has proved a real stimulus to answers. The CLF's suit contends EPA has not adequately protected Cape waterways from nitrogen discharge. Whatever one's opinion of the merits of their argument, the suit has brought a lot of those concerns to the fore.

CCT: Tell us about 'Open Cape.'

Savarese: This is a new fiber optic "backbone" network, scheduled to begin deployment in 2013, that we hope will become a driver of our economic growth. We'll be planning for a diversified, clean, 'light' commercial environment. We expect the Cape's employee profile will remain mostly seasonal, with fewer salaried employees but more and more telecommuters. We look to an increased number of decentralized, Net-based firms, 'clean' institutions to provide new jobs. We'd like to leverage the scientific talent already here, for example in aquaculture, to attract talented professionals who appreciate the Cape's high quality-of-life.

CCT: Can you give us an example of this type of firm?

Savarese: BackOffice Associates. Their world headquarters is in South Harwich. They are relatively new to the Cape, and provide high value-added jobs.

CCT: Because it's broadband fiber, Open Cape could carry an almost unlimited amount of data, constrained only by the electronics at both ends. What groups are involved in planning for putting Open Cape to its best use? It's feasible that so much capacity could be used to deliver more robust data service to commercial and retail customers, even digital cable television.

Savarese: Dan Gallagher is the CEO of OpenCape Corporation, and the expert on planning. A number of other groups are involved ... besides the Chamber, we have the Cape Cod Compact and the Tech Council. OpenCape uses a 'ring' topology. It will first serve government, educational, science and research needs, but retail will figure in the mix. Right now we're looking at improved government and environmental efficiencies. OpenCape could be used to monitor wastewater management in real time.

CCT: How about leveraging military uses?

Savarese: Yes, perhaps Otis Air Base Cape Cod. - The Chamber may be able to work off connections we already know will be built, to create revenue opportunities as well as services, and infrastructure for business needs.

CCT: We hear the Cape Cod Five just passed $2B in assets. That's quite an achievement, especially given the volatility of recent years.

Savarese: Yes, and of that $2B, $200M is capital. The Cape Cod Five holds the mortgage on about one in five homes on Cape Cod. I feel privileged to have this job. One hundred fifty years of community service! --we have the best management, employees and the best shared commitment to relationship-focused community service. We have a presence in all fifteen Cape Cod towns, and now Nantucket also.

CCT: We know practically every Cape Cod home has one of your calendars!

Savarese: Do you know, my Chief Operating Officer and I personally select each photo? We try to represent every town we serve. Our thought is to get out ahead of community needs, and determine alternative means of serving them. We've avoided certain investments based on our long-term perspectives and values: integrity, fairness, and commitment. As a result our balance sheet is healthy. We have a strong capital structure. We have $700M on the trust and asset management side. We started that business from scratch eight years ago. That's a testimonial to the strength of the relationship we have with Cape Cod.

CCT: What do you see as the Cape Cod Five brand?

Savarese: In addition to our core principles of integrity, fairness, and commitment, our employees are the Cape Cod Five brand. They adhere to the values of our organization, and keep their focus on service at the personal level, be it a young couple just starting out or people planning for their retirement. We make it our job to know and take care of our customers' needs, but we don't let any one set of needs obscure our commitment to the base. Our flawless execution is what sets us apart from other banks and is a key part of the CC5 brand. CC5 tellers love to hear what's going on in your life - just so long as the line stays short. Along with our customers, the commitment to the community is a key part of the Cape Cod Five brand. This includes sponsorship of local events by the Bank, support for various non-profits from the Bank's foundation, and volunteerism from the Bank's employees.

CCT: In closing, what do you see as the #1 challenge facing Cape Cod's economic future?

Savarese: We are losing our young people. The latest Census data confirm what a look around any restaurant or beach this summer could have told you. In the past ten years, the Cape has lost almost 18% of adults ages 25 to 34, and almost one-third of those 35 to 44! This is a disturbing trend, and one the Chamber has been working to slow down.

CCT: Ms. Savarese, of course we wish you every success in that effort and thank you.

Savarese: Thank you.