Independent Banker - January 2018 - 32

y 2018 State of Community Banking Survey
y SURVEY SAYS
Will your
community bank
spend more or
less money on
marketing in 2018
than in 2017?
28.77%
More
8.22%
Less
63.01%
About the
same as in
2017
" I think more and more
people expect to go on
the website and have
a [lending] decision
made quickly. If we can't
continue to keep up with
those things, we could
miss out. "
-ANITA DRENTLAW,
NEW MARKET BANK
investing in its people, Coyne says,
but the question is always whether
the mutual is making the best decisions
to ensure longevity.
" If we hoard our capital and don't
invest it, we'll likely be in a scenario
where we're targeted for acquisition, "
he says. " If we spend our capital
trying to make sure we're creating
defensible positions on all levels,
we run the risk of not being able to
absorb a shock to the system. Ultimately,
we need to find balance. "
Getting the word out
It's that balance that all community
banks hope to achieve next year as
they face off against fellow community
banks, money center and regional
banks, and tax-advantaged entities
like credit unions and the Farm
Credit System.
Part of that battle will be focused
on marketing. Nearly three in 10 community
bankers (29 percent) expect
to spend more on marketing in 2018
than in 2017. Much of that marketing
will be in the digital space: More
than six in 10 community bankers
(64 percent) expect to allocate more
of their marketing time and dollars to
digital marketing.
" We're looking for ways to increase
our web presence, " says Drentlaw,
whose community bank uses platforms
like Facebook and Instagram.
" A lot more of our discussion [focuses
now] on how to utilize social media. "
Meanwhile, The Garrett State Bank
in Indiana will work to capture more
of its mortgage customers' deposit
relationships and is eyeing online
account origination, as are 7 percent
of survey respondents, in addition
to loan origination. But in the end,
there's no one perfect solution.
" We've been a higher-performing
bank, and we want to stay there, "
says Mark Fogt, president and CEO
of the $225 million-asset community
bank. " We have to do a lot to continue
to originate residential loans and
develop core deposits. That all feeds
into the greater goal. "
Kelly Pike is a writer in Virginia.
Credit card lending is a strong focus for community banks. Choosing
to implement credit card models to accommodate low- to mid-quality
credit consumers will help community banks stand out among the
competition. As interest rates are continually on the rise, capital costs
surrounding transactional balances remain expensive and lower the
profitability rate for future issuers. Secured card products with graduation
programs are quickly gaining popularity. One question for community
banks to consider is whether their current graduation program offerings
are designed to adequately support consumer maturity and life events.
Millennials and other age segments seek many of the same credit card
features and benefits such as rewards, competitive rates, low fees and balance
transfer options. As millennials continue moving from debit to credit
at a fast pace, banks that focus on lending to this age segment will witness
an increase in credit adoption from these individuals. Community banks
that choose to build their back-office infrastructure to support secure
products can expect to thrive. -Kris Carrera, VP, GM Credit , FIS Payments
32 ICBA Independent Banker January 2018
Independent Banker - January 2018

Table of Contents for the Digital Edition of Independent Banker - January 2018
