Independent Banker - April 2021 - 23

events and other resources offered by
ICBA's Community Banker University,
to nurture homegrown talent and
foster professional development.
While training is a valuable tool
for employee development, some
compliance challenges can be more
efficiently met by outsourcing to
third-party vendors or firms with
specific skill sets. Outsourced services,
which are, of course, always subject
to bank oversight, can offer cost
advantages and increased efficiency
over organic methods and can
bring special expertise, capabilities
and independence that would not
otherwise be possible or cost-effective.
Community banks routinely take
advantage of outsourced compliance
services, including training, reviews
and even outsourced compliance
management, to augment their inhouse
processes.
3. Follow compliance guidelines
About 16% of community bank
respondents to the CSBS National
Survey cited complying with
regulations as a top business
challenge in 2019. The expression,
" We have done so much with so
little for so long, that now we can do
anything with nothing, " emerged as a
motto for the Tactical Air Command
of the U.S. Air Force in 1960. It
might also describe community bank
compliance resourcefulness.
The importance of compliance must
travel from the top-down to engage the
entire team to work together.
QUICK STAT
ICBA points to the attributes
that set community banks apart
from other financial institutions: a
local focus, relationship banking,
innovation, lending leadership for
small businesses, timely decisionmaking
and community engagement.
Despite recent legislation to bring
regulatory relief, community banks
face a disproportionate regulatory
compliance, recordkeeping and
reporting burden that challenges their
ability to support their customers,
serve their communities and
contribute to local economies. The
high cost of noncompliance in manhours,
reputation and real dollars has
been shown time and again.
To build a robust compliance
management system, or CMS,
community banks should implement
the basic pillars recommended by
federal bank regulators: board and
management oversight, including
designating the compliance officer
or compliance committee; a formal,
written compliance program,
including policies, procedures,
training, monitoring and a consumer
complaint response process; and
independent compliance audit.
91%
of insured institutions are FDICinsured
community bank charters
as of Q3 2020
Source: FDIC
4. Use technology to
stay competitive
The world is evolving rapidly toward
more high-tech banking services
that go far beyond simple online
and mobile banking. Competition
No matter what compliance
hurdles community banks face, they
must continue to take proactive
steps to meet them. Doing so will
help community banks further
their mission of promoting greater
access to financial services and
economic opportunity throughout the
communities they serve. 
Mary Thorson-Wright is a writer
in Virginia.
for business is also one of the three
most pressing challenges identified
by community banks, and the
arena of competitors has expanded
to include retail, technology and
telecommunications companies.
While at one time community
banks relied mainly on personal
knowledge of their communities
and local networking to acquire
customers, consumers in both rural
and urban areas are looking for more
sophisticated electronic banking
conveniences. These innovations run
the gamut of electronic and digital
products and services, from online
banking and mobile banking to fraud
alerts, biometric login and electronic
card management.
Community banks are increasingly
embracing technology to keep up
with these demands, according to
a national survey and case study
of community banks conducted
by the Conference of State Bank
Supervisors (CSBS).
independentbanker.org Q 23
http://www.independentbanker.org
Independent Banker - April 2021

Table of Contents for the Digital Edition of Independent Banker - April 2021
