For the past one hundred years, community banks and credit unions have been the go-to institutions for local, relationship banking in the U.S. Share of assets has dramatically declined over the past three decades, however, as the big banks have only gotten bigger.
Certain community FIs have taken strong niche positions and thrived, while others pushing the traditional universal banking model struggled to compete. But even bigger threats than megabanks loom in the shadows: fintech (financial technology) startups. Using inefficiencies in the traditional community banking model, community FI core market (Baby Boomers), regulation, and community banking boards to their advantage, fintech companies create streams of banking services that are interesting, elegant and refreshing
to users (e.g.: Paypal, Square, Simple, Wealthfront, Kabbage, etc.).
Community banks and credit unions are aware that they have a finite period of time (perhaps five to ten years) to dramatically change the path they are on, but they lack clear, tactical advice on what to do to prepare for the future. Bankruption shines a bright light on the myths of and challenges to the U.S. community banking model, offers today's banking leaders proven strategies for tomorrow, and concludes with advice from experts across banking and fintech.
