In fact, the competition may not even have a physical location but exist only in cyberspace. Where community banks can succeed is by continuing to match their attractive service offerings within the context of a long term, mutually beneficial, stable relationship. Banks also are facing an increasingly sophisticated consumer. In addition to better financial disclosures and extensive product marketing campaigns by large product providers, the introduction of technology has brought instant stock quotes, on-line databases, and web sites for every kind of financial service provider and their products. Banks, particularly community banks, continue to hold the highest level of trust among financial service providers.
Community banks can profitably leverage that trust.
Changing delivery economics poses the most interesting test of the community bank's ability to maintain the balance. The megaplayers are using technology to drive down their delivery costs. Community banks will have to continue their focus on costs while making the right technology investments. Finally, the greatest challenge for community banks may be to create a boundary around their customers. Every bank's customers are now easily reached by telephone, by mail, and by computer.