TLDR: Community banks have some lessons to teach the big boys about how to survive and thrive
Community banks have some valuable lessons to offer larger banks on how to succeed in the financial industry, according to a guest editorial by Kevin Shivers on PennLive.com. Shivers argues that too many in the finance world have failed to learn from the mistakes of big bank failures in previous years, and instead, they should look to community banks as examples of success.
- Some in the finance industry have failed to learn from past big bank failures.
- Community banks offer valuable lessons on how to survive and thrive in the industry.
In his opinion piece, Shivers emphasizes that community banks have managed to maintain a strong foothold in the industry by adhering to certain principles that larger banks should take note of. These principles include:
The Importance of Relationships
Community banks excel in building and maintaining relationships with their customers. They understand the value of personalized service and take the time to understand the unique needs of each individual. This level of customer care leads to trust and loyalty, which ultimately contributes to the success of these banks.
Unlike larger banks that often have lengthy decision-making processes, community banks are able to make decisions quickly and locally. This agility allows them to respond promptly to customer needs and adapt to market changes, giving them a competitive edge.
Focus on the Local Economy
Community banks prioritize investing in their local economies. They understand the importance of supporting local businesses and individuals, and they actively contribute to the growth and development of the communities they serve. This focus helps to build a strong and sustainable local economy.
Shivers argues that these principles should not be limited to community banks alone. He believes that larger banks can learn from these practices and incorporate them into their own strategies and operations. By prioritizing customer relationships, embracing local decision-making, and focusing on the well-being of their communities, big banks can improve their standing in the industry.
In conclusion, Shivers highlights the importance of learning from successful community banks in order to improve the overall health and stability of the financial industry. By adopting the principles of personalized service, local decision-making, and community investment, big banks can thrive and withstand any future challenges that may come their way.