Opinion

These 3 trends will be competitive dealbreakers in 2022

More than ever, customers are juggling hectic work and personal commitments and they expect their community bank to deliver high-caliber, efficient experiences that match their speed of life, whether they be face-to-face, on the phone or digital. With almost two years of the ‘new normal’ now behind us, what does the future of community banks look like? What are the key challenges and trends that the banking community will face in the coming year as they strive to compete and earn the loyalty of customers?  [Continue]

When the future doesn’t live up to its hype

Data scientists have concluded at least half of all fintech articles contain the sentence: “Community banks are not known for being on the cutting edge of technology.” I’ve written it many times, and it hurts a little when I do. It happens to be true, but I’m wrong to be glum. Maybe the community of community bankers at large has seen too many tech promises fail to deliver, and so they remain skeptical of the Next New Thing.  [Continue]

What help can your bank provide to financial caregivers?

I have a close friend whose parents both have late stage cancer. In short order, questions about caregivers and safe housing, and how to pay for it, landed in my friend’s lap. She and I spoke while she prepared to temporarily move to her parent’s small Iowa town so she could manage the logistics. I was a bit troubled, therefore, when I stumbled upon a survey that revealed that 31 percent of financial caregivers said their bankers were indifferent to their needs, while 22 percent were disappointed with the support they received from their banks.  [Continue]

Take your M&A communications strategy to the next level

The pandemic turned what was a slow shuffle toward the edge of the technology cliff, into a hard shove right off the edge. Banks had to get nimble, creative, flexible and comfortable with a very different way of operating in a very short time period. And frankly, they did. The continuous push toward leveling up in the digital and technology game is often a driver for a larger decision to find one or more strategic partners, to combine resources — or organizations — to build the best, most competitive and sustainable solution. Enter the acquisition strategy! [Continue]

Automation can reduce disparities in loan approvals

The Paycheck Protection Program included guidance from the SBA to prioritize loans to businesses owned by socially and economically disadvantaged individuals. Yet an October 2021 research paper, published by a group of New York University professors, found a disparity in the approval of PPP loans to Black-owned businesses. These differences in approval rates are not explained by factors like pre-existing bank relationships or applicant behavior. The paper’s authors suggest that preference-based discrimination occurs — and automation can make lending more equitable.  [Continue]

Climate change beckons bankers

May 1, 2008, was the first time I ever heard a speech on climate change in the context of a banking meeting. The annual “Day with the Superintendent” was taking place in West Des Moines, and former Iowa Governor Tom Vilsack opened a 45-minute speech by declaring “climate change is real.” I think the speech caught a lot of people off guard, as evidenced by the tepid audience applause at the conclusion of his remarks. In 13 years, the climate change discussion has moved to the center of the policymaking agenda. [Continue]

Empathy humanizes each customer service interaction

The pandemic has been the ultimate stress test for banks, catapulting digital transformation to top priority status. For our 2021 TrendWatch report, we polled banks of all sizes about how Covid-19 affected the way they connected with customers. More than 57 percent of respondents said they’d accelerated their digital transformation, channeling consumers to the digital environment for activities they would normally perform in a branch. While technology continually transforms how people engage, the need — and desire — for human connection remains strong. [Continue]

Community bankers recount recent deals

Buying and selling activity in banking was chugging along through February of 2020. The number of sellers was manageable, said David Stieber, an investment banker with Oak Ridge Financial, Minneapolis, and that created “a really good environment to feed bank M&A.” And just as life on earth as we knew it came to a screeching halt in March 2020, so too did bank M&A.   [Continue]

Community banks can succeed using data analytics

A company called Aunalytics has a pitch specifically designed for community banks: You can analyze your bank data with the same sophistication as the big banks — at a SaaS price. BankBeat spoke with Katie Horvath, the group’s chief marketing officer, about what’s lurking in the data. [Continue]

Steeped in challenges, 2021 also held hope

I’ve heard some people grumble that 2021 (like the year that preceded it) is a year best forgotten. I’ve always been a reflective sort though, more apt to pause and look backward before moving into the unknown. It’s true, 2021 came steeped in challenges. But as I reflect on the stories from banking we published this year, I also find hope. [Continue]