COMMUNITY BANKING
“ The closure of bank branches could see community banks ’ importance in local communities grow ”
PHILLIP O ’ NEILL FINANCIAL SERVICES DIRECTOR , EUROPE , KIN + CARTA
COMMUNITY BANKS : FINTECH FUNDING engagement , the opportunity opens for community banks to be the local service for community members that need it .
The role of tech at community banks Given the opportunity offered to community banks with the presence of in-person banks receding , the strategies they employ to best use technology are of vital importance .
For community banks , it ’ s about finding the balance between technological innovation and ensuring customer experiences retain a human touch .
Kin + Carta ’ s O ’ Neill notes that while community banks “ have been playing catch up to high-street banks in terms of
As more community banks have come to see the value in digitalisation as a means to augment and enhance the customer experience they can offer , so too has their funding in fintech startups .
Data from CB Insights reveals that while fintech funding from VC firms is on the decline , the funding void is being filled by community banks – with an eye to eventual acquisition or partnership with burgeoning fintechs .
In fact , a study from Cornerstone Advisors revealed that , as of 2023 , over 500 community banks and credit unions make direct investments in fintech startups .
The data backs this up , detailing the average fintech investment of a community bank in 2022 stood at US $ 3m , a figure that is expected to rise to US $ 4m by the end of 2023 .
In total , Cornerstone predicts community banks and credit unions will invest US $ 1.5bn in fintechs by the end of Q4 2023 . This would represent one of the biggest-ever years of investment in fintech from credit unions and community banks .
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