Tag Archives: community bank customer satisfaction

Happy days are here again:
A post-Dodd-Frank small bank growth strategy

As small and community banks struggle to rebuild their business analyst David Smith offers an eminently intuitive solution: focus on small businesses in their community.

Historically, this is what community banks did. (And still do, as a recent SBA report points out.)

Then came the out-of-control monetary policy by the Fed in the early 2000s; the housing bubble and crash; and the Dodd-Frank “cure” (read: worse than the disease).

Thanks to policy changes, small banks need no longer be hampered from exercising their greatest strength: personal relationships with clients.

According to most surveys, “personal relationship” and “chance of being funded” are the two strongest reasons business borrowers select a particular lender. In both categories, small banks out-perform large ones in customer satisfaction. And, of course, the categories reinforce one another.