Community banks operate under the philosophy of – local reinvestment helping small businesses and families grow with improved financial security. The ageless banking model emphasizes personal relationships and integrates technological advancement with more agility implementing stronger security standards. Customer expectations on community banks are increased and analytics can help them deliver impactful offerings. Data analytics has a huge potential in helping banks realized measurable outcomes and improved customer satisfaction by delivering value.
The idea of community banks started in the mid-1800s to empower local banking relationships. April is distinguished as National Community Bank Month recognizes the local community banks for their importance and support. Though large financial institutions are customer-centered, community banks are unique in being people-centric and are more favorable to small-scale businesses. Data analytics can bring in more personalization providing actionable insights. Community banks help local communities to grow and their decision-making reflects community impact to promote a better standard of living.
This April, observed as National Community Banking Month 2021, banks embark on operating in the best interest of their customers. Community banking holds significance for the following reasons.
Mindful of Community Impact:
Community Banks make a decision based on the local conditions and their impact on the community. They are flexible since decisions are made within the bank considering the health of the community.
Significant Local Support:
Taxes paid by Community Banks are spent locally to accelerate community growth. They support local projects, farms, individuals, families, youth, and businesses by providing loans in the interest of communities.
Thrive to Improve Local Economy:
Community banks play an integral part in keeping their local economies lively. They respond rapidly to customers’ requests with effective engagement since they are fully aware of the local conditions and needs. Such local-level support when implemented nationally contributes to an enhanced economy.
2021 is a crucial year for community banks since it has to contribute to the community growth in the pandemic period. This National Community banking month, banks need to strive to guide communities to overcome the challenges by opening the doors of new opportunities irrespective of the uncertainties this year and lend their incredible support to the small-scale businesses. Banks need to use their data effectively to gain a deeper understanding of their customer behavior. The right information at right time can accelerate the right decisions. Hence it’s crucial that community banks leverage the capabilities of analytics and AI to drive optimal decisions, improved customer experience, and higher sales.