Pub. 8 2019 Issue 2

The CommunityBanker 6 Chairman’s Message M E S S A G E By Brian Plum VACB Chairman Blue Ridge Bank Change…and Opportunity! Y ou are reading this column with about one-half of a year left until the year 2020. Let that sink in for a moment. We are on the verge of entering the 3rd decade of the 21st century, and while it appears the future laid out by Hollywood has once again not quite materialized (think The Running Man starring Arnold Schwarzenegger, which was set in 2019), our industry continues to be impacted by forces large and small that change the way we do business. The changing and evolving landscape is not just about technology; it is also about the types of jobs Americans have and where they choose to live. Grow- ing up and still living in a rural area, I think a lot about the future of rural America and its communities. My reflection on this was front and center recently as I watched my hometown grocery store, located in Shenandoah, close. The owners of the store, brothers Mike and Larry Sullivan, paid my way through school by crafting my work schedule around my course schedule each semester, allowing me to work enough hours to pay for college as I went. Many of your banks, like ours, has a presence in at least one market that is struggling to find its economic footing in the nation’s transitioning population and economic trends. While the national banks and super regionals continue to upsize their target audience, the need for community banks to fill the gap in these geographic areas is greater than ever, but that upsizing by larger banks is not just about geography. The upsizing of banking targets is creating massive voids in the marketplace, and our community banks have an incredible opportunity to step in with commonsense, relationship-based banking solutions that drive growth for our clients, communi- ties, and shareholders. The challenge we face is allocating resources; how do we serve our current clients and physical network while also capitalizing on new opportunities, particularly with prospects who want a different delivery channel? The VACB continues to focus on how it can be a good part- ner in helping community banks identify and partner with technology providers. The ICBA has a great resource; ICBA ThinkTECH, which is a free benefit to ICBA members. Both organizations know that to maintain a strong and vibrant community banking industry we need to blend the two, and honestly, that is where I get excited. A recent Federal Reserve showed a 79% small-business loan applicant satisfaction rate with community banks, compared to 67% for large banks and 49% for online lenders. Imagine the possibilities when pairing that community banking reputation for satisfaction with bet- ter technology! The leveraging of improved technology, coupled with our belief in the value of relationships, means community banks are positioned for incredible success, so long as we are ready and willing to learn, adapt, and innovate. The nimbleness of a community bank to act in an unbureaucratic way is a huge competitive advantage in today’s world. It’s easy to look around in certain geographies or within the industry and feel discouraged about the future, but keep- ing a focus on service and evolution will help all of us avoid a Buzzsaw in our 2019 (gratuitous The Running Man reference) and instead flourish beyond our wildest dreams.