The Future of Community Banks - Takeaways From Recent CBAO Convention
Shareholders Sara Costanzo and Andrew Voorhees recently attended the Community Bankers Association of Ohio (CBAO) 50th Annual Convention in Columbus, OH, from August 4th – 7th. This convention was filled with educational sessions, special events, and networking opportunities with fellow peers in the industry. Now, they’re sharing their top takeaways from the event!
Interest rates – Deposits are slowly declining as credit use is on the rise. Anticipated federal cuts will likely lead to increased defaults, which in turn will lead to an increased need for collection representation.
Interest rates – Deposits are slowly declining as credit use is on the rise. Anticipated federal cuts will likely lead to increased defaults, which in turn will lead to an increased need for collection representation.
Regulators – In a presidential election year, where both chambers of congress are also up for grabs, the regulatory environment may change dramatically depending on which party controls government. Community Banks and their service providers must be nimble to adapt to the results of a very consequential election season.
Stockholders versus stakeholders – It’s more than the board that decides the future of an institution, stockholders and stakeholders also have a part to play. Community Banks must not rest on legacy to stay relevant in a changing environment.
Customers – Community Banks are always customer-focused. As times change, it is important to keep up with where customer interest lies in order to better engage and serve them. Creating a positive customer “experience” is key.
Survival – To ensure Community Banking thrives into the future, it is imperative to create niche banking services and experience centers for customers.
What is a Community Bank? Generally, community banks have assets < $10 billion and meet the following criteria:
- Must be operated under the control and direction of an independent management team with decision-making ability in the communities that they serve.
- Must have primary focus of investing local deposits and making loans for the financial and social betterment of the communities that they serve.
- They focus attention on the needs of local families, small businesses, and farmers.
- Must be involved in the communities that they serve through financial and volunteer time commitments.
- They are known for their quality service and personal attention.
- They offer nimble decision-making on loans as they consider character, family history and discretionary spending instead of relying solely on impersonal criteria such as credit scoring.
- Fees for checking accounts and other financial services are typically lower than those charged at other types of financial institutions.
- Must be a depository financial institution.
- Must be a commercial bank, savings bank, mutual savings bank, or savings and loan association.
- Must have an independent bank charter from at least one of the appropriate regulatory agencies such as the Office of the Comptroller of the Currency (OCC), Ohio Division of Financial Institutions, or Federal Reserve Bank (FRB).
- Must be insured by the Federal Deposit Insurance Corporation (FDIC)
- Must represent and promote the independent community bank philosophy.
If you have questions about these topics or would like to learn more about our consumer and commercial collections solutions, contact Sara and/or Andy today.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
