Community Banks: What you should know in 2022

A community bank or a niche bank is a digital bank that caters to a specific market or customer segment. They often have a personalized service portfolio accompanied by targeted marketing, tailored entirely to their customer base. Yet, niche banks or community banks provide banking benefits in the fullest sense. Most of them provide their customers with the basic financial services of commercial banks, including checking, payment, and lending. Niche digital bank customers can open saving accounts or go forward with deposits. So, for the most part, its size and coverage tell niche banks apart from the dominant, traditional houses.

There are several areas a community bank could focus on, for example:

• Specific Demographics: These institutions particular portions of the populace, like pensioners or young adults.
• Specific Industry: Community banks choose their product mix to meet the needs of particular industries, including offering loans and transaction facilities with a particular purpose of buying real estate/property.
• Specific Community: They could build up a community bank product to address particular communities, for example, local banks servicing the LGBTQ community, unbanked and underbanked people.

Read more about what you can do with community banks here.