Pub. 9 2018 Issue 3

www.wvbankers.org 20 West Virginia Banker C ommunity banks have historically been viewed as slow to adopt tech- nology when compared to their larger counterparts. However, the need to answer increased consumer expectations via modern banking strategies has spurred more and more community institutions to embrace new technologies. With cus- tomer expectations centering on digital channels, a digital push has become paramount. Today, community banks are zapping the technology gap between themselves and larger institutions. An ABA study found that 52% of community banks will increase the number of digital channels offered to customers to improve engagement this year. This advance toward digital banking stems from a desire to attract new customers. But how exactly are banks using technol- ogy to level the playing field and acquire these customers? Using Technology to Enhance the Customer Experience Today, the experiences customers receive from online shopping and smartphone apps have shaped their expectations for all other service providers, including financial institutions. Indeed, matching an Amazon or Netflix experience can be a tall order to fill for community banks, but it’s a challenge they’re meeting head on—start- ing with a seamless mobile experience. For financial institutions, integrated mobile banking is arguably the greatest way to tighten the technological gap. Those that have implemented mobile banking have gained major benefits, the most important of which is pleasing customers. “Mobile has been one of the most utilized services that we have rolled out,” says Wayne Garrett, executive vice president of Legence Bank in Eldorado, Illinois. (The bank utilizes a digital banking platform directly integrated with its core.) “The way the software is designed almost makes it foolproof. I believe anyone can use it.” One major focus area for a com- munity institution like Legence is fostering and maintaining growth. Because its mobile app enables customers to connect to the bank from anywhere, Lynn Byrd, the bank’s Chief Financial Officer, believes it has been key in not only gaining new accounts, but also retaining long-time customers. “Because of the mobile app, students who are graduating and moving off to college can still keep their accounts here at Legence,” Byrd says. “So we are able to retain those customers, and they can retain a connection to their home- town, too.” Using Technology to Build Rela- tionships Technology is often perceived as a dividing force in our society; yet, technology also harbors the po- tential to build lasting, meaningful relationships. A growing number of banks have employed an integrated customer relationship management (CRM) platform to do just that. CRM systems enable banks of every size to enhance relationships with their customers, and for community banks, relationships are everything. An integrated CRM allows banks to tailor individualized communica- tions to customers based on their channel preferences. “We can reach out to specific types of customers throughout the year via newsletters, phone calls, etc.,” says Byrd. “If we notice customers Community Banks Zap the Tech Gap By Shane Ferrell