Community Banks Do What Technology Cant Relate To Their Customers

In 1991, the Los Angeles Times published an article that said "a debt-free society with electronic bill payments, fewer bank visits, where personal computers act as home tellers and a one-stop shop for a variety of financial products for including insurance etc. Real estate". It is unlikely to ever come true. At the time, fewer than one in five workers nationwide used direct deposits for their paychecks, despite their widespread availability, and banks spent millions offering online banking services to no avail.

Everything has changed.

Today, we can cash out and perform all kinds of transactions, even applying for loans, at our fingertips. No human interaction required. In 2021, the total number of banks has decreased from 17,886 in 1984 to 4,951, and consolidation is spreading among the remaining banks. In fact, most, if not all, of the banks mentioned in the Los Angeles Times article no longer exist.

Still, community banks like Wilson Bank & Trust, which recently celebrated its 35th anniversary and opened another office, No. 30, in Brentwood this year, are still thriving.

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State banks survive because banking is not for everyone. In the 1990s, community groups believed the new service would target wealthier customers. This has been proven by many. There is a digital divide in this country that has been widely exposed during the COVID-19 pandemic. Internet access is unevenly distributed. There are also safety and comfort barriers, but most importantly, when the going gets tough, we need people. We need compassion and empathy. We need empathy, context and perspective, things we will never find in an FAQ.

Community banks exist because they are truly about the community. As the Independent Community Bankers of America website explains, "They transfer local savings to Main Streets and the neighborhoods they serve, driving job creation, fostering innovation and making their clients' dreams come true in communities around the world." America." As small, local businesses, community banks thrive only as their customers and communities expand. They rely on banking relationships to consider family history and personal expenses when making loans, factors that megabanks don't take into account.

Community banks survive because, while some may consider them outdated, they embrace change. It is in their best interest to provide customers with access to innovative products and technologies while maintaining the importance of the banking relationship.

I won't deny that technology has been a great boon to the banking sector, but financial decisions can be complex and even overwhelming. Talking to someone in another state or country is often not enough. You need the perspective of someone who has walked the same path as you and understands what it was like to get from Davidson County to Wilson County. You need people who always know you and appreciate what you are trying to achieve.

Our state continues to have fewer community banks each year, putting vulnerable Tennesseans at risk of demeaning and even predatory practices. The remaining banks will continue to work hard for you and your community. I know because it's their community too. I know this because banking at a local bank is "back to basics," as a Los Angeles Times article put it three decades ago. It's a step forward in developing and enriching the communities where you live, work and play.

John McDerman III is CEO of Wilson Bank and Trust.

This article originally appeared in the Nashville Tennessee. Opinion: Community banks are doing what technology can do.