The Financial Brand Insights - Fall 2022

Consumers have generally regarded community banks as trustworthy because of their local ties and customer service, but major financial institutions are gaining substantial ground by offering predictive, proactive and customer-first experiences. According to Deloitte, while consumers used to choose the branch closest to them, they’re now choosing the brand closest to their values or needs. Additionally, community banks have been outcompeted on technology adoption thus far, with seamless digital services primarily coming from larger banks. However, if community banks can modify and modernize the way they’ve always done business, they should be able to move into a period of greater growth and innovation. Adopting Technology to Remain Competitive As technology advances exponentially, customers not only want but expect banks to create digital channels and implement mobile banking, automated loan underwriting, online loan applications and other innovations. A majority of consumers prefer local and regional banks, but many are turning to large nationwide banks for their superior digital experience and capabilities. Although smaller banks are starting to adopt technology at a faster rate, they still lack the budgets or workforce to deploy sophisticated technology and compete at the same level as a larger organization. However, many have expressed the desire to continue building out new technology offerings to emerge from the pandemic more competitive in the long- term, and this possibility is within reach for all financial organizations. Community banks that have adopted technology at a faster rate tend to be larger and manage more assets, but there’s an opportunity for community banks of all sizes to move into the digital era. To do so, they should prioritize flexible options that give them the ability to compete, whether that involves tapping a third-party vendor or internally shifting priorities to ensure

How Banks Can Emerge from the Pandemic Era Stronger

By Shelba Murphy SVP of Sales at Veritran

Community banks have long been pillars of the American economy, providing a vital lifeline to financial services in areas where other financial institutions have a smaller presence. However, these institutions are now under unprecedented pressure. From the accelerated shift to digital services amid Covid-19 to increasing consumer demands for personalized experiences, community banks are being forced to evolve in order to meet the new challenges of a post-pandemic business landscape. Strengthening trust and leveraging partnerships are also vital elements of the post-pandemic equation for success. The Covid-19 shutdown accelerated banking’s shift to digital delivery. Now, as consumers focus more on brands than on branches, the competitive imperative is to keep abreast of rapidly changing technology and personalize the customer experience.

Values > Location: While consumers used to choose the branch closest to them, they’re now choosing the brand closest to their values or needs.

101 THE FINANCIAL BRAND INSIGHTS FALL 2022

102

THE FINANCIAL BRAND INSIGHTS FALL 2022

Powered by