Find stats on top websites
Industry Landscape
The community banking industry in the US is evolving, balancing traditional relationship-based services with increasing demand for digital solutions. It faces competition from larger banks and fintechs but benefits from its local focus and personalized approach. Regulations and economic shifts continue to influence its stability and growth.
Total Assets Under Management (AUM)
Total Assets of Community Banks in United States
~Approximately $3.4 trillion (as of Q4 2023)
(1-3% CAGR)
- Growth driven by loan demand and deposit stability.
- Influenced by interest rate environment and local economic health.
- Varies by region and bank size.
Total Addressable Market
Approximately $25 trillion
Market Growth Stage
Pace of Market Growth
Emerging Technologies
AI-Powered Personalization
AI and machine learning can analyze customer data to offer highly personalized financial advice, product recommendations, and proactive support, enhancing the 'Modern Craft Banking' philosophy.
Blockchain for Secure Transactions
Blockchain technology can enhance the security and efficiency of financial transactions, including lending and wealth management, while reducing fraud and operational costs.
Open Banking APIs
Open banking APIs allow secure data sharing between banks and third-party fintech providers, enabling new integrated services and a more holistic view of a customer's financial health.
Impactful Policy Frameworks
Basel III Endgame (2023 Proposal)
The Federal Reserve, FDIC, and OCC proposed new rules in July 2023 to significantly increase capital requirements for larger banks (those with over $100 billion in assets) and to better align U.S. regulations with international standards.
While primarily targeting larger banks, these regulations can indirectly influence community banks by shifting competitive dynamics and potentially leading to increased compliance costs for some, as well as altering funding costs across the industry.
Consumer Financial Protection Bureau (CFPB) Section 1033 Data Sharing Rule (Proposed 2023)
The CFPB proposed a new rule in October 2023 under Section 1033 of the Dodd-Frank Act, aiming to give consumers more control over their financial data, including the right to share it with third-party apps and services.
This policy will empower customers with greater control over their financial data, potentially increasing demand for secure data sharing capabilities and pushing community banks to adopt more open banking practices to remain competitive.
Community Reinvestment Act (CRA) Modernization (2023 Final Rule)
The OCC, Federal Reserve, and FDIC issued a final rule in October 2023 to update the Community Reinvestment Act, aiming to strengthen and modernize its framework to better address contemporary banking practices and community needs.
This updated CRA rule will require community banks to re-evaluate their strategies for serving low- and moderate-income communities, potentially influencing lending practices, community investments, and branch locations to ensure compliance and meet evolving regulatory expectations.
Transform Your Ideas into Action in Minutes with WaxWing
Sign up now and unleash the power of AI for your business growth
