How can community banks, which rely on a relation-based banking model, compete against large banks and fintechs in the digital banking era? Jonathan Scott finds that many community banks partner with fintech firms to enhance their technology platform, implement improvements to loan processing, and provide mobile banking platforms. Still, community banks remain cautious and tentative when engaging with fintechs. 

A smaller number of community banks are engaged in Banking as a Service (BaaS), which grants fintechs access to the community bank’s balance sheet and banking payment system. Moving forward, community banks that do not rely on BaaS must find ways to preserve relationships with consumers using multiple financial accounts.