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End of Community Banking?

June 30, 2010

I recently read the Sara Wallace article, The End of Community Banking, in the 6/29/10 Wall Street Journal.  In essense the article discusses the severity of the financial reform towards community banks, “The comprehensive financial reform agreed upon by the House and Senate on Friday, along with all the new regulations of the past year, could signal the end of community banking. The new reforms will give more power to the Federal Reserve to regulate how my bank and others like it do business.”

While I certainly understand the significant impact reform will have on community banks, I do not believe it will be the end for all community banks.  Sure some will fold due to the added pressures, but those organizations that adapt to change are the ones that will succeed.  After all, if it is not the federal reform it will be something else coming down the pipeline that can be of detriment to the success of a community bank.

One approach for community banks to take that will combat these costly reforms, is to implement business intelligence, which will  improve operational efficiencies.  For example, FMSI’s The Teller Management System™ provides bank managment with decision-support intelligence.  By scheduling tellers based on forecasted transaction volumes, The Teller Management System™ helps banks gain better control of labor costs while increasing service levels.

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