Community banks benefit from larger rivals’ over-reliance on tech
Large banks have spent billions on IT to efficiently process standardized products, leaving an opening for local lenders that offer a banker to talk to.
Most senior bankers agree that this year’s awful events have underlined the urgency of fully embracing digital banking, as their own staff and those of their business customers continue to work from home and consumers turn away from cash.
But are they missing something?
Prioritizing high-tech over the human touch risks turning banks into mere transaction platforms and threatens to remove the one true advantage that distinguishes them from technology companies.
Businesses, especially now, need bankers that can take the time to understand their individual circumstances and problems, offer appropriate financial expertise and advice, and then provide customized rather than standardized solutions.
Take, for example, dealing with applications from US companies for the Small Business Administration paycheck protection program (PPP).