This Industry Viewpoint was contributed by Josephine Bernson, Chief Revenue Officer of Great Plains Communications
Telecom providers that serve local community banks would do well to keep in mind the mandate of these smaller financial institutions when it comes to the challenges associated with digital transformation in the face of a gap between easy internet access and adequate broadband connectivity.
Community banks across America take a personal interest in the needs of the people who live and work in their local communities. The goal is to be not just a good bank, but to be a good neighbor. Not affiliated with the much larger multibank holding companies, their focus is providing banking services within their local communities. The majority of their core deposits come from local customers and, in turn, they make many of their loans to businesses in the surrounding area. They are often considered to be “relationship” bankers, as opposed to “transactional” bankers.
For these smaller banks to provide a full range of personal, business, and agricultural banking services that can compete with the larger nationwide banks, as well as the up and coming 100% digital neobanks, a broadband foundation is required. It’s important for telecom providers to understand what services and capabilities make the best business sense to help their community bank customers benefit most from broadband.
More Informed and Quick Decisions
When community banks make financial decisions, the impact, including delays, will be felt locally.
As are many enterprises today, regional and community banks are pursuing digital strategies to make everyday operations more efficient and less time-consuming. They’re migrating to cloud platforms and accessing data and tools, such as customer relationship management (CRM) software, from the cloud. Broadband speed and greater bandwidth capabilities provide faster access to data and applications stored in the cloud.
For efficient use of bandwidth, the routing and transport of data, voice and video translates to lower latency with faster transactions and quicker upload and download of large files. More direct routes available between POP (Point of Presence) to POP offer a closer proximity that reduces time to route and transport data, voice or video.
It’s difficult to pinpoint the speed needed for a bank’s everyday operations since it depends on factors such as the number and size of applications the bank uses and how many transactions are handled daily. For some smaller banks, a symmetrical 20 Mbps connection enables employees to work efficiently and productively.
Where fiber is available in an area, symmetrical bandwidth enables employees to send data out as fast as it can be downloaded – which is a boon to operations and decision-making.
Customers Everywhere Want a Choice: Bank Inside or on the Phone
There was a time not too long ago when traditional banking activities were carried out by an in-person visit to a bricks-and-mortar bank. Today, consumers’ must-have services include mobile and online banking features and applications such as funds transfers, remote deposits, real-time account updates and voice commands.
Since the mobile banking trend doesn’t appear to be declining any time soon, community banks should keep in mind that mobile banking features are much more efficient and less time-consuming with the help of high-speed internet service.
Today, digital banking trends are influencing how banks everywhere must adapt to serve their customers. High-speed broadband, and particularly fiber broadband as it becomes more widespread, is the foundation for regional and community banks to successfully compete with larger financial institutions.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Fiber Networks · Financials · Industry Viewpoint