At one point in time, the smallest town in the U.S. was Buford, Wyoming. Population: 1. The only resident also ran the only gas station and post office in the town. It’d be a real kicker if he also ran the only bank, right? Suffice to say, America is home to many small communities with locally owned financial institutions that serve the needs of those communities.
One of the hidden difficulties for institutions operating in these small towns is growth. When you know everyone in a 50-mile radius by name, it can feel as though you’ve exhausted all the opportunities at your fingertips.
It’s time to sharpen the edge of your retail banking strategy.
The realities of deposit share markets are complex. You may think that you’ve captured all the deposits, or at least your fair share of what’s available to you. However, relying on a single data source such as the FDIC’s Deposit Market Share Report can underrepresent the real potential in your market. Take a look at the NCUA data for your area (or vice versa, if you’re a credit union) — your nearby competitors may be holding more market share than you realize. Additionally, privately insured institutions are completely missing from the data set.
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