Banking Can't Lose Touch

So, let’s walk into the business part of it. When it comes to business, I believe that a lot of these community banks and credit unions should not be chasing scale. They need to be chasing depth.

Stacey Bryant, what is your banking hot take?

I believe community banks and credit unions are sitting on a gold mine that many of them don’t even recognize—or they don’t know how to access it. So hear me out.

There are about four million businesses in the nation, and only 5% consider a credit union their primary bank. Five percent.

There are businesses struggling to grow and manage their cash flow, and they don’t understand where certain fees are coming from. I truly believe there’s an opportunity. There’s business, and there’s wealth.

So, let’s walk into the business part of it.

Okay.

When it comes to business, I believe that a lot of these community banks and credit unions should not be chasing scale. They need to be chasing depth.

Tony, I’m a former credit union employee. I’m also a former banker. Let’s use a little banking scenario.

Tony is my customer. Tony is my member. I’ve known Tony for decades. I know Tony’s side business, right? I know your kids. I know your kids’ businesses—or the businesses they will inherit once you’re no longer here. There are decades of trust.

That’s something a lot of these trillion-dollar banks and megabanks with thousands of branches aren’t really taking advantage of.

I was chatting with Mary Miklethun. She leads business deposits and lending at U.S. Bank. She mentioned that her business banking team discovered a janitorial company in Las Vegas. Very sexy, okay?

The company was cleaning up new construction projects before they went on the market.

Gotcha.

They needed a certain offering. They needed a bank that understood their unique cash flow. U.S. Bank doubled down there.

My solution—where I think a lot of these community financial institutions can improve—is to pick three, four or five verticals. The riches are in the niches.

Pick specific industries, whether they’re healthcare, restaurants or retail, and give your organization a dedicated offering and team that can be the expert for those businesses. That’s when a friendly bank becomes the bank that can get it done.

I’m on the road a lot, and I always hear, “How do we modernize the tech stack?” I think we also need to ask, “How do we amplify the treasury stack?”

That goes back to picking a few lanes—three, four or five industries—and doubling down on them. If we amplify those treasury stacks, that’s the opportunity I’m referring to. That’s the gold mine.

Love it. Let us know in the comments what you’re doing in this space. If you have any questions, certainly reach out.