With an increase in online traffic and challenges to in-person banking, community banks may be asking themselves if new branches are necessary. But many bank leaders report they’re investing in new branches because they’re strategic tools for growth.
Over the past two decades, banks have increasingly dabbled in BOLI, or bank-owned life insurance. While there are downsides to consider, experts say the benefits of these policies are two-fold: to generate income in the long term and to retain bank leaders.
Like any business marketing its products and services, a community bank must keep its advertising truthful. There are plenty of regulations specific to financial institutions under the FDIC, CFPB and other regulators.
Recent data shows that the pandemic has allowed fraud to grow. Cybersecurity experts share ways for community banks to prevent potential attacks, as well as information to pass onto customers to arm them with fraud prevention strategies.
Using data from your community bank, an ad campaign or public sources allows your marketing efforts to find potential or existing customers who’ve already shown interest in your brand.
Fintech-developed apps that help customers manage their finances are looking to partner with community banks to help them reach new customers and deepen existing relationships.
This past year, the Consumer Financial Protection Bureau (CFPB) fined a national bank for misinforming its accountholders about its overdraft services fees. A handful of regulations apply to banks offering overdraft programs.
When people come to live in the U.S. from other countries, they often don’t have an American credit history, identification or other typical requirements of the account-opening or loan process. But community banks are finding ways to serve this growing population while mitigating credit and compliance hurdles.
Offering cross-border payments used to have a high barrier of entry, but thanks to new technology and increasing revenue opportunities, they may be an untapped growth opportunity for enterprising community banks.
Many community bankers are cautiously optimistic that this year will bring the same, if not more, demand for loans. They also describe a year that may bring opportunities to gain market share from big banks amid continued uncertainty.