Central Massachusetts’ community banks know where their strength lies. It’s not in offering the latest advances and tech tools, the most sophisticated financial products, or highest CD rates. Their greatest strength is their connection to community: being a known commodity, a friendly face, and a place where customer relationships are at the core of their business.
Of course, community banks – like all other businesses – still must compete in a technology-driven world. Customers expect certain conveniences, like mobile banking, to be at their fingertips.
The emergence of AI in the last three years offers exciting new possibilities to improve business outcomes and enhance everyone’s lives. Yet, none of that is as important as maintaining the human connection.
In his story “Tech support” in this edition’s Focus on Banking & Finance, WBJ Managing Editor Eric Casey describes how Central Massachusetts bankers are trying to find the sweet spot between being tech-savvy and customer-friendly.
Smaller banks are finding ways to compete against the largest multinational financial institutions by partnering with outside fintech firms, in order to offer the kind of digital banking experiences customers expect.
Still, they are cognizant of their need to offer the same friendly face to their customers; providing staff that you can actually talk to when you have a question.
All businesses, regardless of their size or industry, need to understand this lesson, as the loss of the human connection is a growing pervasive problem throughout society. There are a legion of examples: Restaurants where reservations can only be made through an app, mobile phone providers who seemingly do everything to avoid having customers talk to a staff member. The list goes on, and it’s only growing. In part, it’s driven by market research that only tracks smartphones without spending enough time with customers to truly understand why and how decisions are made.
The AI revolution is upon us, and there is no turning back the clock. Technology, for all its flaws, has been incredibly effective in helping us create a more efficient economy. But do those efficiencies equate to a better society? The potential is there, but the landmines are aplenty. Clearly businesses need to embrace technology, especially cutting-edge innovations, to stay ahead of the curve in an increasingly competitive environment.
But we need to remember that technology remains a tool, and the heart of any organization is its people and the relationships they have with its customers.
This editorial is the opinion of the WBJ Editorial Board.
