In today's banking sector, the concept of compliance has transcended its traditional role as a regulatory checkbox. Instead, it has evolved into a fundamental component that underpins the stability of the financial system. The events of the 2008 financial crisis served as a stark reminder of the consequences of inadequate compliance. Regulatory bodies worldwide responded by fortifying their frameworks, ushering in an era of heightened scrutiny for banks. These regulations touch nearly every facet of banking, from capital adequacy and liquidity requirements to risk management and reporting standards.
The Importance of Having a Digital Transformation Strategy
Community banks understand the complex realities faced by their clients. They are ingrained in their respective regional communities; attuned to local economic and demographic factors. The more successful community banks are able to hone that expertise and, with it, forge strong, personal relationships with their clients. This insight is a major asset and a big reason why businesses that were initially denied loans during the pandemic’s early phase turned to their local community banks for support.
Community banks stepped up to help small businesses who were meant to benefit from PPP loans during the onset of the Coronavirus pandemic. Those same community banks are...