We’re profiling extraordinary leaders who have championed community banking. Meet Andrew Dillard, Chief Business Officer and Co-Founder of Acceleron, which provides cutting-edge technology allowing community banks and credit unions to conduct international payment transactions profitably through a foreign exchange (FX) marketplace. Dillard’s extensive background in commercial banking, lending, global capital markets, international finance, and foreign exchange includes executive roles at Banc of California and Comerica Bank. He is also a serial entrepreneur who has launched several businesses in banking and foreign exchange.
His dual background in traditional banking and the dynamic startup environment has given him a unique perspective on how community banks can evolve and thrive in today’s fast-paced financial landscape.
Can you tell us more about your background and how you got into community banking?
My introduction to community banking happened somewhat serendipitously. While I was in college at USC, I started working part-time for a local community bank — Imperial Bank. At the time, I didn't know much about banking, and I never thought I would make it a career, but then I started to see so many different interesting aspects of the business landscape that the bank touched. They did everything that California businesses needed, offering loans to early-stage startups in the biotech, life sciences, and technology fields. They also had an entertainment division that helped finance movie productions and a wine lending division.
How did this lead to you working in foreign exchange and even on the “Lord of the Rings” franchise?
A position opened in the Foreign Exchange Global Capital Markets division, where I worked with CFOs and treasurers to manage their foreign exchange risk. One of my most exciting projects was helping the Lord of the Rings franchise in New Zealand. We managed their budget, which was written in dollars, but the production took place in countries with unique tax credits. The tax credits that came back were in foreign currency, and all the spending were also in that foreign currency. Since that currency fluctuates all the time, the question was how do you manage all that? If there’s a hundred-million-dollar budget and the currency moves even a few percentage points, that could disrupt the entire budget.
Our job was to mitigate these fluctuations to avoid budget issues caused by political changes and currency movements. This experience was really exciting and sparked my interest in foreign exchange.
How did working with startups influence your approach to community banking?
I got a chance to work with startup founders very early in my career. Interacting with tech founders and operators at life sciences and biotech companies was eye-opening. They had a unique swagger and innovative spirit. This was back when companies like PayPal were starting to hit their stride. Tech companies were doing cool things like having ping-pong tables, arcade games, and meditation rooms. I thought, this is the future.
I started going in an entrepreneurial direction. I joined a team to start a small bank, which Pacific Western Bank eventually acquired. After that, I went into the FX business and launched the West Coast division for a money service business. I created a business plan and grew the business from zero to over $5.5 million in annual revenue in three years. It was my own lemonade stand.
What brought you to correspondent banking and Acceleron?
Our evolution comes from addressing real issues our customers face. We decided to repurpose the technology we were building to solve the correspondent banking de-risking issue. More and more, we see situations becoming emergencies when a provider changes their risk profile, leaving community banks in the lurch.
Our technology features a marketplace with multiple correspondent banks that bid on transactions, returning the best rates and allowing community banks to earn non-interest income. Working with multiple correspondent banks through this marketplace also expands the bank’s ability to serve a wide array of customer profiles and needs. With the added flexibility, community banks can avoid being at the mercy of their correspondents' limitations.
What do you think are the opportunities for community banks when it comes to international payments?
Community banks have a significant opportunity to generate non-interest income from international transactions with minimal effort. New automated solutions, such as Acceleron's Smartroute FX marketplace integrated with Fiserv Payments Exchange, make this possible. With a simple dropdown menu on the platform, community banks can start processing international wires and capture the profits themselves, instead of allowing big banks and foreign banks to reap the financial benefits. This approach not only keeps customers in their ecosystem, allowing them to provide better service, it also boosts revenue, positioning community banks competitively in the market.
What outside activities do you do to stay motivated?
I have three boys ages 10, 13, and 16 who keep me very busy. I also play in the U.S. Tennis Association and participate in local competitive events like the Manhattan Beach Open and the Newport Beach Classic, which are charity events. I have a few trophies, but I really do it for fun and to enjoy the Southern California weather.
Acceleron builds cutting-edge software that allows community banks and credit unions to conduct international payment transactions profitably through a foreign exchange (FX) marketplace. Serving over 160 institutions and facilitating more than $1 billion in international payments annually, Acceleron helps small banks generate non-interest income and compete more effectively with high-fee big banks. Our solutions integrate seamlessly with Fiserv, ensuring quick implementation and smooth operation.
We will be at Fiserv Forum in September! Contact us to book a meeting.