Let's Making Community Banking Popular Again

Is it just me or does the idea of community banking still seem to allude many banks?

Sure in every town there may be one or two local banks that cater to the surrounding area as a local bank should, but I don’t believe that is enough. Local banks can only contribute so much to the point where larger more regional banks need to step in and step up their game.

Mid to large size banks display an image that makes them look like a local bank when you read their mission statement or look at their branding. But once you step inside of a branch you can be assured you will get the same treatment you expected from “big business”.

Employees who welcome you with open arms for opening a new checking account, and those who are your best friend for making large deposits.

I understand this trend and admittedly have fallen victim to it myself. But as time passes we must understand that as bankers we need to begin looking at the long term welfare of the bank in each of the communities it serves.

Opening accounts for affluent customers who will pull their money out at the drop of 20 basis points is not a sustainable system.

A sustainable system includes yes, working serving and creating relationships with clients like this but also preparing the customers who have not made it to this level of wealth for when they do.

I have worked with clients whom opened their first savings account with me only to watch their balances continue to grow over the years and them become a more respected customers of the bank.

A simple savings account followed by a checking account, credit cards, lines of credit, followed by investments and home equities was the course of these relationships.

You better believe that providing financial services to customers like this over the course of a lifetime builds a relationship that can only be broken by poor customer service and self interest.

Retail banks need to begin not only focusing on the larger clients to hit their numbers but to begin planting the seeds for profitability in the future.

Focus on the smaller customer as well.

Provide the same level of service you would to customers with larger balances and wider product arrays.

Have each branch become more involved in its respective community.

Let residents know you are there for them today and 10 years from now.

Build lasting relationships with all customers who walk through your doors.

Plant the seeds now and reap the dividends in the future.