Taking the Pulse of Community Banks
Community banks, often defined as locally operated institutions with under $10 billion in assets, support local economies and cultivate personal relationships with their customers. Their commitment to relationship-based banking and community involvement inspires trust and loyalty, making them valuable partners in regional economic stability and growth. This report sheds light on their strategies and priorities to maintain and expand influence within their communities.
The Banking Landscape Going into 2025
Bankers navigated economic pressures, evolving cyber threats, increasing regulatory requirements and demand for continued personalized, customer-centric services throughout 2024.
Bankers’ responses to the statements below provide a snapshot of their perspectives on the industry.
Confidence in Community Banking
While bankers face evolving industry challenges, an overwhelming majority expressed strong optimism about the future of community banking. Only 8% held a less than optimistic view.
I’m optimistic about the future of community banking.
Strongly Agree
Somewhat Agree
Somewhat Disagree
Growth and Engagement
Growth remains a priority for banks, as a majority seek to expand and increase deposits. 91% strongly or somewhat agree their customers are engaged on digital channels, reflecting consumers’ preference for digital engagement. Only 9% feel they aren’t growing their customer base.
My bank’s customers are engaged on digital channels.
Strongly Agree
Somewhat Agree
Somewhat Disagree
My bank is growing its existing customer base.
Strongly Agree
Somewhat Agree
Somewhat Disagree
My bank is focused on increasing deposits.
Strongly Agree
Somewhat Agree
Somewhat Disagree
Technology and Efficiencies
An institution’s growth and engagement depend partly on efficient processes and modern technology. An overwhelming 95% of respondents agree that they are enabling choice for customers through the latest technology. However, over 40% strongly agree their processes could be more efficient.
My bank’s processes could be more efficient.
Strongly Agree
Somewhat Agree
Somewhat Disagree
My bank is enabling choice for our customers through the latest technology.
Strongly Agree
Somewhat Agree
Somewhat Disagree
The Future of Branches
86% of respondents believe the branch will remain relevant for at least the next 10 years, slightly down from 92% last year. This prediction suggests plans to meet customers in the channel of their choice with a blend of digital innovation, traditional customer engagement and innovative in-branch experiences.
The branch will remain relevant for the next 10 years.
Strongly Agree
Somewhat Agree
Somewhat Disagree