Five questions with Dave Seleski about Stonegate Bank and Cuba

Five questions with Dave Seleski about Stonegate Bank and Cuba
By Donna Gehrke-White
Sun Sentinel

Tourism, construction benefit from Cuba trade, Stonegate chief says
Dave Seleski has long been a history buff. Now he's making history as a
banker helping to normalize commercial relations between the U.S. and Cuba.

His Stonegate Bank of Pompano Beach announced a milestone July 23 when
it signed the first U.S. correspondent banking deal with a Cuban bank in
half a century — meaning it can conduct transactions on behalf of Banco
Internacional de Comercio S.A.

Earlier, Stonegate had agreed to become the bank for Cuba's government
offices in the U.S.

The agreements will help normalize commercial relations between the U.S.
and Cuba, said Seleski, Stonegate's president and CEO.

In trips to Cuba during the past four years, he said, he has noticed
"some pretty big changes" on the island. People are more optimistic that
their lives will improve in a "very poor country," Seleski said.

South Florida companies stand to benefit if more trading is allowed
between the countries and the Cuban standard of living improves, he
suggested.

"It's all about creating a middle class who will buy more goods," he said.

Seleski recently answered five questions from the Sun Sentinel:

Q: How is Stonegate going to overcome the digital divide in resuming
U.S.-Cuba banking relations? Will you be working on improving technology
in Cuba?

A: There really is no digital divide in terms of moving money from the
U.S. to Cuba. The Cuban banks are very sophisticated and have the latest
technology. The biggest issue is simply monitoring what are permissible
activities given the fact that the embargo is still in place.

Q: You've talked about how the resumption of U.S.-Cuba banking will help
Cubans lift their standard of living and make life easier in a poor
nation. How will it help South Floridians?

A: I believe in three ways. First, Miami, Tampa and Fort Lauderdale all
have ports that are the closest to Cuba. Therefore, most shipments of
goods from the U.S. will most likely come from those ports.


Second, a recent Obama administration exemption from the trade embargo
is construction goods that are sold for private residential
construction. One of the largest costs to construction goods is
shipping. In theory, the closer the destination the cheaper the product.
I believe that this will be a huge opportunity for Florida-based
construction companies in the future.

Third, just like we benefit from the cruise industry now, I think
tourism will get an additional boost given our proximity to Cuba as
people stop in Miami or Fort Lauderdale for a day after a trip to Cuba.

Q: You've said you see the Cuban banking agreement as a long-term
investment for Stonegate. Why is this and how will the bank benefit
long-term?

A: Banking in general is a long-term game. One of Stonegate's key to
success has been investing in long-term projects with minimal return.
Over time those returns improve and your clients look to you as a stable
reliable partner that does not abandon a strategy for something that at
the time may appear more lucrative.

We have found that in a society that generally favors immediate
gratification that you can differentiate yourself in this manner. In my
sales meetings I always use the analogy of the tortoise and the hare. We
are definitely the tortoise.

Q. You've said the Cubans have been welcoming to Stonegate. Has the
Cuban government eased its red tape? Are Cuban leaders becoming amenable
to the idea of private businesses operating in Cuba?

A: I think the answer is yes. However it is important to realize that in
my opinion they will prioritize their time on businesses that are going
to help the Cuban people and economy first. There are some exciting
changes going on in Cuba. A good example of this is the Mariel Special
Economic Zone outside of Havana. I would strongly suggest anybody
interested in this topic visit their website at zedmariel.com.

Q: What advice would you give South Florida companies interested in
doing business in Cuba?

A: First and foremost, I would make sure it is a permissible activity.
Second, I would go with the attitude that this is a long-term
relationship that all parties must benefit from. You need to realize
that you are a pioneer and to some degree an ambassador of the U.S.
trying to mend over 50 years of a very dysfunctional relationship.

Finally, pick the right advisers. There are lots of people out there
professing to be "experts" who can get you in front of the right people,
etc. … Avoid these people and go with the advisers that have actually
been doing business with Cuba over the years.

dgehrke@tribpub.com or Twitter @donnagehrke

Source: Stonegate Bank: Cubans buying more helps South Florida
businesses - Sun Sentinel -
http://www.sun-sentinel.com/business/fl-stonegate-cubaqa-20150731-story.html