1、REPORT 1:CONSUMERS PERSPECTIVE ON THE STATE OF COMMUNITY BANKING THE FUTURE OF COMMUNITY BANKINGCONTEXTThe expression of being caught between a rock and a hard place could not be truer for community banks who are under tremendous pressure to adjust their current playbook to survive.The fact we are a

2、t this juncture is quite surprising since for decades community banks were a stellar segment of the banking industry,representing the largest share of financial institutions in the US.However,from 2004 to present day,community banking institutions experienced a decline of more than 3,800 organizatio

3、ns,highlighting this segment is the most vulnerable to disruption.With recent announcements of mergers and the deregulatory attitude of the new administration,we should expect to witness a greater number of mergers within the sector.These and many more market dynamics are stifling community banks ab

4、ility to grow,caught between larger National and Regional Banks,both encroaching on their community equities.Behemoths such as Chase are ramping up community banking programs on one side.On the other side of the equation,grassroots-focused Credit Unions and online-only financial institutions are mee

5、ting other emerging needs.2|THE FUTURE OF COMMUNITY BANKINGThe heavy cost of digital transformation did not help the relevancy of community banks,as this banking segment lagged the better funded national institutions or better network leveraged credit unions,as noted in our 2017 Overcoming Stealth A

6、ttrition In Retail Banking Study.The growth of consolidation through mergers,evolving customer needs and rising competition from national banks,credit unions and digital financial institutions are driving the loss of community institutions.In 2024,there was a notable increase in credit unions acquir