PAYMENT SOLUTIONS
Community banks provide essential services to the SME marketplace . We take a look at their future within fintech
A s the fintech marketplace expands , offering an array of services traditionally provided by physical banks , the role of community banks has remained key in providing for small businesses and individual customers within localised areas .
A community bank is a deposit and lending institution that specialises in personal relationships with their customers . They are typically smaller than nationwide or international institutions – with an emphasis on the ‘ community ’ aspect – and usually don ' t have the product range or branch networks available to larger banks . Community banks also often provide lending facilities to those who may not qualify with big banks , based on the more standardised criteria used .
Community-level banking in a digitised economy But , in a world where the transactional space has never been so dynamic , competitive and frictionless , the role of community banks isn ’ t always clear – and , according to industry experts , it ' s an industry that needs to define its purpose if it is to continue to develop .
WRITTEN BY : JOANNA ENGLAND
“ The new … community banks are taking the opportunity to use modern banking tech , unburdened by legacy systems ”
ANDY COPSEY NON-EXECUTIVE DIRECTOR , ABL