PAYMENT SOLUTIONS community banks fail to take this approach , they will struggle to survive as they must remain competitive as consumers continue to demand new , digital services aligned to their needs .”
Embracing future changes Copsy agrees that personalisation is key in providing services that appeal more to their customers . He says community banks must also capitalise on the close relationships they can establish in their local communities .
“ To do so , they need to communicate their commitment to their communities clearly , and build a loyal following by only supporting their defined geographic market . Some , for example , promise that deposits taken from savers in the local market will only be used to finance mortgages in that market .
“ Those community banks that are mutuals can reinforce this message by saying the customers own the bank , thus making the bank accountable to its customers in what – if managed correctly – can become a virtuous circle .”
Copsey believes that , by having scalable systems , community banks should also engage with experienced local commercial finance brokers that can build their balance sheets and generate returns more quickly to cover their largely fixed cost base .
He adds : “ The importance of face-to-face advice to these businesses , which are so vital to the economy has , if anything , increased . Some established and new lenders have majored in tech over personal relationship banking – with the latter being especially crucial outside of the main UK commercial centres , where SMEs have been left abandoned by the clearers .”
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