I know you don’t want to hear this, but leveraging new technology is a critical tool in growing community banks. And I know what you’re thinking, this is not only a significant financial investment, but it’s also an investment of time and staff resources. These reasons, along with fear of the unknown, are a significant factor keeping many small community banks stuck in the technological dark ages. And while there are many intrinsic benefits to community banking – none more valuable than your ability to serve your community with the highest level of customer service – your clients are becoming more and more interested in the conveniences offered by big banking.
The reality is, no matter how you’ve always done it, your customers of all ages and lifestyles are looking for a new and more technologically advanced banking experience. They can get it elsewhere, and if you’re not careful they might just leave to find it.
Banking customers are accustomed to living in a world with a very high level of connectivity. All of their devices talk to one another and to the internet in order to ensure convenience at every step. They can shop online at Amazon with a single click, make purchases using their phone if they forget their wallet, send money to their friends and family halfway around the world with just the touch of a button. This is the world of convenience they’re living in, and they’ve come to expect it.
If it seems like your customers are getting younger and younger, its because members of the Millennial and Z Generations are diving into the world of personal banking. They were born with devices in their hands, and many of them have never and will never write a check in their lives. And with them, they bring a host of expectations about how the banking world should work. You can stand your ground and bury your head in the sand when it comes to technology, but they’ll just go somewhere else and bring their money with them.
What can I say? The times are changing. But you don’t have to think of it as a bad thing. For years small community banks felt unable to compete with the giant banks in their towns. It was too difficult and expensive to gain access to the technology they needed to gain a competitive edge. But now, the landscape has shifted. At Surety Bank, we underwent a switch to a new core banking software and the process was smooth and easy and has changed the game for us.
I urge you not to give into the “this is how we’ve always done it” mentality. The world of banking has been transformed by technology, and there’s no turning back now. For more information about our software transition, contact me at any time.
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