August - 20198It's stating the obvious that banking and financial services in general are rapidly changing. As an example, there are fewer community banks today than just 10 years ago. In addition, the integrity of the overall banking system has taken some hits due to infringements made upon people's trust due to various bank practices routinely seen in the media.Another leading factor to the change is technology. Customers can simply go online to obtain a loan, open a savings account, and save for retirement, and at any time of day.So, the convenience, service, and quality of online banking and investing options limits the customers' need to walk into a traditional retail branch, or office like a few years ago.Bank consolidations are also continuing to take place, leaving committed long term institutions harder to find. Thus, customers question how long their bank will be around, much less their banker and/or advisor. This challenges commitment levels to build long term relationships, resulting in scattered and isolated product shoppers rather than comprehensive partnerships.All of these factors and more are driving the push to commoditize banking and financial services. Thus, a bank's overall value for example, is reduced to merely a particular product's rate - and not necessarily the best benefit, guidance, and service.However, J.D. Power conducted its first 2018 Retail Banking Advice Study showing that roughly 78% of those who responded said they were interested in receiving financial advice or guidance from their bank. However, only 28% said they ever received that advice. In summary, people desire guidance and comprehensive financial consultation from their bank. The problem is few actually ever receive it.Therefore, one of the best opportunities to remain competitive and relevant long term amidst this rapidly changing environment is for the local financial institutions to become the go-to places in their select communities for customers to easily obtain simple, yet comprehensive financial education and guidance.By Dagan J. Sharpe, Director of Wealth Management & Region Bank Manager, SVP, Queens-borough National Bank and Trust CoOpening The Vault - Banking's Greatest Opportunity Is In Sharing It's Greatest AssetDagan J. SharpeIN MY OPINION
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