Main Street Matters Blog

In 2020, nearly 18 million Americans were defrauded via digital wallets and person-to-person (P2P) services, according to Javelin Strategy & Research. With numbers like that, P2P solutions like Zelle have come under fire, and issues are escalating.

Talent recruitment and professional development has always been a critical issue for community banks, but today’s job market is different. The impact of the “Great Resignation” has placed the workforce in the driver’s seat. Even so, as nimble, local decision makers, community banks have a big opportunity to stand out from the crowd of potential employers.

Despite ICBA’s persistent communications on the negative impact of Durbin Amendment interventions on payment card systems, this latest iteration of Durbin only compounds the prior harm and furthers the misguided policies of the past that will inevitably lead to significant disruption in credit markets and consumer spending, if passed.

The current worker shortage is creating real economic impacts across all industries. According to the U.S. Chamber of Commerce, there are 3.4 million fewer Americans working today compared to February of 2020.

As the leading providers of agricultural loans, community banks make up 80 percent of all financing to agriculture, and opportunities exist to extend that support.

Relationship banking has entered a new, digital era as confirmed by recent research from Cornerstone Advisors that concluded, “There is a human element to mobile banking.” In fact, this Cornerstone study revealed that 60 percent of Gen Z and almost two-thirds of Millennials expect to connect with customer support directly from their mobile banking app.

While the effects of COVID slowed consumer credit card spending, the first half of 2022 has pointed to a return to pre-pandemic behaviors. In fact, the Federal Reserve Bank of New York reported that in the first quarter of 2022 credit card balances have risen $71 billion higher than the same period in 2021.

It comes as no surprise that cybersecurity tops community bankers’ list of risk concerns. In fact, cybersecurity ranks higher than government regulation, the cost and availability of labor, and inflation, as a chief threat for 2022, according to a Conference of State Bank Supervisors survey.

Everyone, including big tech and social media players, want a super app. That’s according to a 2022 Accenture Banking report, which underscores that the threat is real.

When a shiny new object comes along like “buy now, pay later,” or BNPL, merchants will gladly pay significantly higher transaction fees than they do for credit cards. But this recent surge in BNPL adoption by merchants deflates their arguments that interchange—the fees for accepting card payments—harms them.