Where global banks focus strategic leadership on the broad and diverse needs of global markets, a local community bank focuses strategic leadership on the specific needs of the community within which it operates. Global markets and local needs can be two very different things. And in the context of a community bank, that isn’t a bad thing.

When determining a vision and a strategy for a community bank, it is important that these are underpinned by a deep understanding of the community you serve.

While profitability is important for a community bank, equally as important is the way you engage with your community. The emphasis on building personal relationships should be a cornerstone of your strategy. This includes a focus on personal service (in-branch banking) and involvement in community initiatives via direct engagement, sponsorships, and grants.

Firstly, your customers benefit from a streamlined, personalised service and I’m sure there are many of us that yearn for these types of experiences in other sectors. Secondly, streamlined services can mean streamlined operating processes – knowing your customers makes decision-making a whole lot easier. Risk management is often localised versus the behemoth risk management strategies global banks must employ to factor in global risks.

💡 The biggest advantage is to the community itself.

Shareholders are local and dividends paid stay in the local community. Community investment flows into community projects that have tangible and intangible impacts on local communities. A prosperous local community bank creates high quality jobs for locals who can serve their communities whilst also making a good living.

I write about community banking once per week and will be exploring different elements of strategic leadership in the coming weeks.

Let me know if there is anything you would like me to focus – my 📥 DMs are open for engaging conversations.