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Lindsey Hall: Hi. I'm Lindsey Hall, Head of Thought Leadership at S&P Global Sustainable1.

Esther Whieldon: And I'm Esther Whieldon, a Senior Writer on the Sustainable1 Thought Leadership team.

Lindsey Hall: Welcome to ESG Insider, an S&P Global podcast, where Esther and I take you inside the environmental, social and governance issues that are shaping the rapidly evolving sustainability landscape.

Back in March, we celebrated International Women’s Day and Women’s History Month. To mark the occasion,  we relaunched our Women in Leadership series of this podcast. And throughout 2024, we’ll be speaking to women CEOs and leaders from across industries and all over the world.  

Diversity in leadership has been a focus for many stakeholders in the corporate world in recent years. And gender diversity is where we see most companies creating policies.   

Esther Whieldon: But women still hold a relatively low share of corporate leadership roles. This is true for both management and board positions -- we’ll include a link in our show notes to research we recently published on this topic.   

We know from our data what the numbers show us. But we wanted to understand what’s behind those figures? How do the few women who make it to the top of their companies get there, and what challenges do they face along the way?   

Lindsey Hall: So far in our 2024 series we’ve heard perspectives from the US, Europe and Asia, and women leading companies in cleantech, consulting and consumer goods.  

Today we’re talking to Bonnie Lee. She's the President and CEO of Hanmi Financial Corporation and Hanmi Bank. That's a community bank based in Los Angeles. Hanmi Bank was established in 1982 to serve the underserved Korean-American immigrant community. Today, it serves multi-ethnic communities through its network of 35 branches and eight loan production offices. 

Bonnie took on the CEO role in May 2019. And in 2023, The Los Angeles Business Journal named her to its Women of Influence in Finance list, and American Banker named her one of 2023’s Most Powerful Women to Watch honorees. As we'll her Bonnie explain, her personal path to banking began when she watched her parents applying for a small business loan.

Bonnie Lee: I started my career in banking through a management training program that started in 1980s. And then I have had various positions in a number of institutions. And my career actually, again, when my parents apply for a small business law to purchase a wholesale fruit and vegetable business in Los Angeles. 

And through the process, I got interested in banking. And when there was open recruitment for a management training position, I applied. And from my recollection, there must have been about 60, 70 candidates, and I was chosen as 1 of 3 finalists. In my career as a management trainee for the organization. 

And during that time, we had to go through, I think it's over a year-long program, and then you had experience of learning from the branch operation from the lending area to even in the corporate side and compliance risk and accounting. So that was really a good opportunity for me to actually see the kind of bird's eye view of how banks operate. 

And from that point on, I really truly had really a front row to the needs of the small businesses because we are targeting mainly a business community and small businesses did not have much resources at the time. So surely, that was kind of my growth for the banks at the time.

Lindsey Hall: Okay. And when you started in that trainee program, did you have your sights ultimately set on the CEO role? Or how did that come about?

Bonnie Lee: No. Actually, it took me a couple more years to think, to really settle banking as my career. "Is this a career that I really devote myself and build as a career?" So I had my doubt but I was lucky enough to have great mentors and managers. They invested in me, they believed in me so had an opportunity to be trained under really fantastic bankers. And I just worked hard and whenever there was an opportunity to learn new areas of banking, I continued to learn and educate myself. And that's how my career advanced. 

And it wasn't really true the -- I think you know when I became a senior credit officer of an institution that I kind of [thought] maybe someday I can be a be a leader in an organization. But just because of life's journey, think about something, it doesn't necessarily happen. But in my case, like investing in one career, one industry, and putting the hours in and just get myself ready for whenever the opportunities rise, and that's how I think eventually become a CEO.

Lindsey Hall: Okay. As you think back on some of those mentors and the guidance they were giving you, is anything spring to mind, anything you recall that was particularly helpful in your career path?

Bonnie Lee: There are a number of -- surely, I think the number of learning opportunities that my mentors and my managers have provided for me but I guess number one thing that still remains a need is that whatever you do, surely be yourself and do it in your style, right. And because I think eventually, the people will recognize who you are, your talent and your capabilities and then you can grow into different roles and responsibilities. 

And another thing that I learn through various mentors is that banking is really a people business. And our team of bankers that we work together, they come from various different backgrounds and different situations. And always remember to have empathy in what they go through, whether they're personal lives and what not. So that's the one you've always resonated in my life. And also, there are opportunities that may come, but opportunities are given to people that are ready, right? So those are the things that I learned throughout my career in industry.

Lindsey Hall: Okay. That's really interesting. Now on the flip side, what if we talk about some of the challenges? It sounds like you've learned some really useful lessons along the way. But what were the challenges that you faced before you got to this point where you have this point of view, this perspective?

Bonnie Lee: Sure. I think the as a woman, as a mom, and as a wife, one of the challenges is really balancing your career with your personal life. And I learned from managing both the career and things at home that it's really important in setting the priorities, right? Because you only are given 24 hours a day and you have a number of things you have to accomplish in a given day. And then life has to go on, your children's needs and things that are full. 

And for me, actually, I had to take care of my elderly parents and who had a number of serious illnesses too. So it really -- it wasn't easy. But I just setting the priorities on  daily basis, on a weekly basis, and then also make sure that we have the help that's needed. And sometimes I get to hire help outside help to take care of things at home. So those are the challenges. I don't think it's not just for me. I think it's men and women that are balancing the career as well as family life. Most of the people go through that.

Lindsey Hall: Yes. You're really speaking to me today, especially what you're saying about the balancing act. I've got 2 sick kids at home. I think it's challenging. And especially when you think about it for someone in your role and something so high pressure as CEO, can you tell me more about the part of your career where you were kind of getting to grips with that? Maybe how many kids do you have for starters?

Bonnie Lee: I have two wonderful daughters. And then I think the children at various stages, I think when they're very young, there's more physical demand, right? And then when they -- as they grow older, there's more emotional demand. And that I think when they're much older than there's a financial commend then you have to think about their career and would they marry and all that. So the entire life. And as a mom you are integrally involved in the process. But for me, my family is really -- they've been very supportive, particularly my husband as well, and it wasn't for their support, I would not be sitting here today. 

So I truly appreciate all their support. And now they, my girls are much older, and my older one is a banker too. So I think that because I've been a banker on my career, I think that when my older one was originally, she was going to be a school teacher but she changed her career to become a banker. So I must have done something right, right?

Lindsey Hall: That's right. That must feel kind of good Talking about the banking industry. I started off my career as a journalist covering the banking industry. So I kind of saw firsthand that there were not a lot of women in the CEO role. It's gotten maybe a little bit better over time, but not a ton has changed at least that's what the data shows us. But I'd like to dig beyond the data. I'd like to know about your experience, like what has gender diversity been like for you in the banking industry?

Bonnie Lee: I think when you look at the industry today, I think more of the executive senior level, you're right, I think there is still, in terms of ratios there's less women than men. For Hanmi though, women represent nearly 70% of Hanmi's workforce. And even with that, 62% of them are in the managerial roles. And our bank is so diverse that 92% of our company's workforce is minority. 

And I think that we truly practice diversity and that kind of mirrors the market, the business community, the network that we operate in. And we serve in various geographic regions, different ethnic groups, not just the Korean American business community. But there are a number of ethnic, different diversity groups, ethnic groups that we serve. So rightfully, I think our workforce mirrors that.

Lindsey Hall: Those numbers you cited for women and management roles are certainly higher than what we see as industry averages or across industry averages. Can I dig in a little bit more and ask what is Hanmi doing differently to achieve this gender diversity? And then can you talk to me more broadly just about your approach to diversity, equity and inclusion?

Bonnie Lee: So you know I think our journey is very distinctive. And I think that it begins with our history and our original mission. The bank was founded to serve the underserved and underbanked the Korean immigrant population. And that's not -- the target market is not just the Korean community. It's in different the groups. And as I said, I think in order to serve these different groups, our work has to have that diversity as an institution. So I think throughout the 42 years history, and I think that the culture and our platform is built to represent the market that we serve. 

Lindsey Hall: As I mentioned at the start of today's episode Bonnie took the reins at Hanmi in May 2019. Less than a year later, the COVID-19 pandemic was underway. I asked her about the experience of leading during this time of crisis. You'll hear her talk about how the bank helped customers apply for PPP loans. That's the Paycheck Protection Program that the U.S. government introduced during the pandemic to help small businesses keep their workforce employed through the COVID-19 crisis. 

I'd like to ask a little more about your leadership style. You talked a little bit about some of the challenges you faced along your career path, but we haven't talked about the fact that you took on the CEO role less than a year before COVID-19 hit. How does that impact your leadership, sort of taking the reins right as the pandemic was unfolding?

Bonnie Lee: Yes. I mean going through the COVID period was really, really challenging. But I always believe and I share this with the entire Hanmi team is: Whenever there is challenges,, try to see the opportunities within the challenges. And I think that during the COVID time, that was kind of manifested. 

If you remember, during the COVID, government came out with the PPP program. And initially, I think a lot of banks were kind of shying away from this program. But we actually went out and advertised sort of big advertisement in the paper, inviting not only our customers but other banks' customers to apply for the PPP program. And through that process that we actually acquired a number of new customers. 

It wasn't the easy process because literally, I think the first one, we did about 3,000 applications for over $300 million second round, we did about over 1,000 applications, and we provided over $100 million PPP loans. But everybody was actually involving this full program. But through the process, we gained the opportunities to acquire new customers. So that was actually a great experience. 

And also, if you remember, there are a number of industries that were affected by COVID, obviously one of them was the travel industry. And we do have a customer base that owns and operates hotels and motels in the hospitality industry. And that particular group was severely targeted. And for the customers who have outstanding loans, we actually provided a lot of communication, handholding experience so that we work with them to go through the modification so they don't default or they don't give up on their business. 

So COVID itself had a lot of impact. But through that process, I think that we pulled the team together. Our team was very collaborative team. And then at the end of the day, we were able to serve not only our customers, but the business community at large, and we had an opportunity to bring in additional new customers.

Lindsey Hall: What you're describing, this communication, is handholding reminds me of a news story that I read where it talked about how in 2023, so just last year, you increased communication to reassure customers — and this wasn't to do with Cove, this was to do with the fact that other banks in the industry were failing and there was some worries and concerns. Is that right that characterization of your increased communication to customers during that time?

Bonnie Lee: I think one of the most important traits and responsibility of a leader is really moving the team forward and achieving the organization's goals and whatever the challenges that you're currently facing. And I think the communication is a key for the success of the process. 

And that's why I think that through the process, whether the PPP or loan modification that our entire Hanmi team was either on the phone or in the e-mails, trying to reach out to our customers, and try to see, evaluate what kind of needs that they have. So internally, externally, it is one of the most important, communication is the most important leadership trait.

Lindsey Hall: Okay. You're kind of answering my next question, which is about how would you describe your leadership style? And also, how has it evolved over time and over these different experiences you've had?

Bonnie Lee: You know, I try to lead by example. And that means we have to work harder and people don't actually follow you by what you say. The people follow you by what you do, right? So, and that's why I think that particularly for me as a CEO and then other CEOs too, they are like in a fish bowl. So you have to practice what you preach. And that's pretty much my leadership style. 

And I think as much as possible as much, as my time allows, I'd like to be having face time with Hanmi team members, and that's also true for the external environment. I get involved with a lot of community events, and I like to be out there and see what our customers are feeling, what the business community is feeling, because at the end of the day, I think we have to be both successful. Our customers and the community has to be successful, so we can be successful as well. So that's something I reached to our any team members. Again, really involved with not only with the customers but in the communities and in all the good costs as best as we go.

Lindsey Hall: Bonnie also talked to me about her approach to training and retaining talent.

Bonnie Lee: One of my key focus is growing the next generation of bankers, or not even the bankers, anybody who is pursuing a career. And that's really the talent management and growing the talent is, I think, is the success for any organization in any industry. 

And for Hanmi, we have done a number of things. We have built our own in-house credit training program, and we had it for about 2 years. It's basically 12 months training program with the internal and external training courses. The aim of the program was to provide opportunities to build a new talent in the communities that we serve. And so, and our trainees and the Hinton experience by working alongside our credit teams and participating in the mock Credit Committee presentations and with the mentor ships in their assigned departments. So it's really a good opportunity for them. 

The program has been very successful. And so from there, our existing credit officers also wanted to strengthen their skill. So this work, we are providing the same type of training for the existing credit officers. And then we also now have launched the Hanmi management leadership program back in 2020 for our middle-level managers. So that program has been widely received for our middle managers as well.

Lindsey Hall: Okay. So it sounds like you have a lot of focus on those earlier in their careers and sort of building that talent pipeline. With that in mind, what would be your advice to someone who's starting off early in their career, banking or otherwise?

Bonnie Lee: I would give them a number of advices. And one of them that I already mentioned, try to find opportunities during the challenging times. 

And as you walk the lives journey, there are sometimes things come to you that you can control and sometimes it's not controllable, right? But every challenge has a solution. And I think that as long as you just anticipate, within the given information, given environment, I think that those that prepare yourself and seizing the opportunities to come, I think those people will be the successful one. 

But I think whether you are banking or not, as best as [you can] anticipated, assess the situation that you are in. But never forget, always the hard work is the core component of the success. And, particularly for the younger generation, don't practice the shortcuts. You think you may get there in a shorter time, but you're actually deterring your career. So that's one advice. 

And everybody makes mistakes as well. As best as we could, try to make the best decisions and whatnot. But I think the failures, life's failures are your biggest teachers as long as you can learn from it and pick yourself up and move on. And that's how you continue, whether in your personal life for your profession life.

Lindsey Hall: I love that. Is there, in our last minute here, is there any failure that you in particular look on in your career that has taught you?

Bonnie Lee: I had a number of failurs as well. But I think that once it's water under the bridge. I think as long as you learn the key things, and you just do not repeat the mistakers. I think you're good. And as I said, I serve under 12 different CEOs and everybody was a teacher. We learn from their success and their mistakes.

Lindsey Hall: So today, we heard Bonnie explain that she didn't initially set out to become CEO, but she said she put in the hours put in the work, and she was ready to say, "Yes", when new opportunities arose. She also talked about the role that Mentor's played in her career. She said she's worked under a dozen different CEOs during the course of that career, and she learned from each. 

She talked about Hanmi's focused on diversity and how the bank's workforce mirrors the diversity of the markets it serves. 

And like we've heard from other women in this series, she talked about the role that empathy plays in her leadership style because ultimately, she said, banking is really a people business. 

Esther Whieldon: Bonnie also talked about how she balances her career and family life, whether that was caring for young children, or later, caring for her parents. Because as she said, we're only given 24 hours in a day, and that's a challenge I think we can all relate to. And a through line in many of the interviews we've done for the series. 

We'll be back throughout the year with more episodes in our women in leadership series. So please stay tuned

Lindsey Hall: Thanks so much for listening to this episode of ESG Insider. If you like what you heard today, please subscribe, share and leave us a review wherever you get your podcast.

Esther Whieldon: And a special thanks to our agency partner, The 199. See you next time.

Copyright ©2024 by S&P Global  

This piece was published by S&P Global Sustainable1, a part of S&P Global.     

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