Numerous digital banks have arrived with offers of zero fees, instant approvals and banking that never sleeps. For a time, it seemed that community banks would be relegated to footnotes in financial history, unable to compete with the speed and convenience offered by app-based competitors. But something unexpected happened.
Even as small business owners kept turning to their local banks for loans, families walked into branches to discuss mortgages and neighborhoods continued to rely on institutions with a reasonable idea of who they were. Old banking versus new isn’t playing out the way tech enthusiasts said it would.
Why community banks still matter in a digital world
Data from the Independent Community Bankers of America shows small banks will say yes to a small business loan about 50 percent more often than their larger competitors. And these organizations understand local market conditions at least 10 times better than an automated underwriting system ever could.
Digital Banks have personal understanding missing in their offering- they have speed and convenience up their sleeve. The farmer searching for equipment financing in a dry year is best paired with a loan officer who sees past credit scores. Just like a family restaurant looking for help with its post-pandemic recovery, needs someone who knows the demographics of a neighborhood, not the dimensions of a supplier on a balance sheet.
How to build relationships through local presence
Innovative strategies keep community banks in market and in message. They pour money into local Little League teams, participate in the chamber of commerce festivities and conduct financial literacy seminars at nearby schools. Others hand out print flyers at neighborhood events where personal relationships still trump mobile deposit features any day of the week. Speaking of, they arrive in nigh corporeal form via HelloPrint, allowing smaller banks to get noticed on smaller corporate budgets.
Few seem to feel that the brick-and-mortar branch is dead in the water. While younger customers have grown familiar with digital tools for everyday transactions, they want in-person guidance with big-money financial choices.
Integrate personal touch with technology
Smart community banks aren’t shunning technology they are using it differently. Instead of supplanting human interaction, they’re applying digital tools to supercharge personal service. Basic transactions are managed by mobile apps, allowing branch employees to concentrate on advisory relationships. Video conferencing allows loan officers to meet with customers who are unable to stop by during business hours.
Many community banks have started to offer a hybrid approach by combining personal expertise and digital convenience. It helps customers apply for mortgages online and later chat with local officers to get an idea of the prices of neighborhood property. This hybrid approach is 10 times more effective than the old-school approach, which requires customers to make personal visits.
Marketing strategies that emphasize local roots
Moving forward, community banks are also playing up their local roots in marketing campaigns. They showcase studies from big companies in their service area and also highlight contributions to local projects that big banks ignore. Using HelloPrint’s personalized printing solutions, these organizations can produce marketing collateral that supports their community efforts while looking professional.
The battle between community banks and the digital-only players isn’t so much about tech. It is whether financial services will become transactional rather than relationship-based. Community banks that offer personal service but judiciously invest in technology are finding that many customers want both convenience and connection, not just the fastest app.
