INDUSTRY STANDARDS

The Problem for Small-Town Banks: People Want High-Tech Services

Small and medium businesses, especially new operations, have the challenge of matching service standards in competing for customers against industry leaders. Industry leaders benefit from brand awareness of not only their name, but their product lines. New players must generate both.

In many industries, there are minimal performance expectations that producers must meet to qualify as a viable option for consumers. In the above article, community banks struggle to meet the convenience standards big banks established in the minds of consumers. Online banking capabilities makes people less likely to go into a branch.

Community banks need to find strategies to provide similar convenience if they want to avoid bank runs.