Growth Strategies & M&A

Whether growing organically or through mergers and acquisitions, even positive change can present challenges. We talked to two community bankers about considerations and issues they’ve noticed as their banks have grown.

Large corporations that lack the agility of startups often turn to “intrapreneurship” to make time and space for creative development in the workplace. Should community banks be doing the same?

Our annual State of Community Banking Survey of ICBA member banks shows that growth is the name of the game in 2018. You’re planning to achieve that growth through creating efficiencies, introducing new technology like loan origination software and investing in digital marketing. Read on for more insights from our respondents.

Your community bank’s strategic plan often takes things like innovation, growth and succession planning into account, but does the budget? How can your bank plan for these often unpredictable expenses in its budgeting process? Experts say it requires doing your homework, reassessing your budget more frequently and, yes, accepting some risk.

In recent years, some community banks have made the decision to go public as part of their strategy for growth. In 2020, however, COVID-19 cast uncertainty over the market. But experts, including community bankers who recently made the decision to go public, say community banks should chart their own path for growth.

Acquiring a wealth management firm, fintech, title business or other nonbank organization can unlock new opportunities for community banks. These acquisitions can add new revenue generators, specialized employees and other assets to a community bank in place of organic growth. But experts say that finding the right business to acquire can be tricky.

Generation Z represents one in four Americans today, and they’re looking for their bank. To attract this new generation of potential customers, community banks must understand what banking means to them and how to meet their financial needs. The key, community bankers and experts say, is to meet this digitally savvy, financially independent group where they are: primarily, online.

The 2008 financial crisis kept the number of de novos low for years, but that trend has started to reverse. Then, the pandemic happened. Today, de novos and beginner banks report that they’ve faced a unique set of challenges—and opportunities—while launching their financial institutions.

Customized, well-thought-out interactions—especially in the online banking space—are integral to wooing new customers and retaining existing ones. We asked several banking leaders how they’ve employed fintech to ramp up their marketing campaigns, hone their analytic strategies and gain new patrons in the process.