Balancing Tradition and Change: How Community Banks Can Adapt Without Losing Their Core

John Arendall

President

Seventy percent of businesses say they see their banker as a trusted advisor. That number is more than a statistic—it’s a reminder of why community banks exist in the first place. Trust, relationships, and local knowledge have always been our foundation. At 22nd State Bank, we’ve learned that the best way to earn trust isn’t through products. It’s by presence. 

When a client calls and says, “I want to run this by you,” that’s proof we’ve earned their confidence.

But the world around us is changing fast. Regulations evolve, customer expectations shift, and technology has transformed the way people think about banking. Consumers now assume that everything can—and should—be done from their phones. For community banks, the challenge is not whether to change but how to adapt without losing the values that make us who we are. The future belongs to banks that can balance tradition and change.

Trust is our foundation

In small towns and regional markets, confidentiality and trust aren’t just important—they are everything. If a community bank ever loses that sense of integrity, it loses its reason to exist. That’s why at 22nd State Bank, we make trust the starting point for every conversation.

We earn that trust by getting to know you and your business. Our role is to understand the bigger picture and guide customers toward solutions they may not have considered. 

That approach is very different from simply “selling a product.” Customers don’t leave our branches feeling like they’ve been upgraded to something they didn’t want. They leave knowing we took the time to understand their needs, protect their confidentiality, and deliver solutions built for them.

We see technology as our "fifth branch"

For decades, the branch was the heartbeat of community banking. Customers came in to sign paperwork, make deposits, and meet face-to-face with their banker. Those in-person connections are still vital, but today, many customers interact with us most through their phones. That’s why we think of technology as our “fifth branch.”

It’s not just an app or a website. It’s a real extension of our service model. Customers want both: the human connection of walking into a branch and the convenience of managing finances remotely.

The challenge is to make digital tools not only available but also simple and secure. Think about where you go when you crack the screen of your laptop or lock yourself out of your tablet. Most of us can’t figure out every tech feature on our own, but once someone shows us, it feels easy. That’s how we view our role in digital banking.

When we first added Wi-Fi in our branches, it wasn’t just a technology upgrade. It gave us the opportunity to help customers download our app right there in the lobby, walk them through the setup, and show them how to use it. Something as simple as learning to set a travel alert becomes more than a feature—it becomes a moment of empowerment. Customers leave knowing not only that they’re protected, but that they can do it themselves next time. This blend of digital access and human guidance is what makes technology feel less like a barrier and more like an extension of our service.

Security is paramount

One of the biggest misconceptions about digital banking is that convenience and security can’t coexist. Many people, especially in rural markets, worry that moving more services online means exposing themselves to more risk.

At 22nd State Bank, we believe technology should be both a service and a safeguard. We’ve built stronger protections into our platforms, but we also make sure customers know how to use them. That combination of security plus education is essential.

For example, it’s one thing to offer fraud monitoring. It’s another to teach a small business owner what to look for, how to set alerts, and how to respond quickly if something looks suspicious. By pairing the tool with real support, we turn technology into a trusted partner rather than a source of anxiety.

Confidentiality is especially critical in smaller communities. People want the ability to manage their money online, but they also want the assurance that their personal business stays private. We treat that responsibility as non-negotiable. Without it, we don’t have anything.

We ask questions to figure out solutions

Every bank offers checking accounts, savings accounts, and loans. What sets community banks apart is the ability to listen deeply and tailor those services to the unique needs of each customer. 

We don’t apologize for asking questions. In fact, we see it as one of the most valuable things we do for small businesses.

Sometimes the best solution for a business isn’t a new loan or product at all. It might be helping them think differently about how they’re using their resources. For example, shifting someone from accounting into sales can generate new revenue without adding headcount. 

Other times, it’s about showing a business how technology can streamline tasks, reduce costs, and free up their team to focus on growth. The point is, we don’t start with selling—we start with asking questions. That way, clients walk out with the solutions they truly need, not an unnecessary upgrade.

There's a balancing act ahead

Rural markets, mid-sized towns, and larger cities all face different challenges and expectations regarding technology. Some customers are ready to do everything remotely, while others still prefer to walk into a branch for anything official.

Our responsibility is to meet all of them where they are. That means continuing to provide the in-person service that built our reputation, while also staying ahead of the digital curve. 

We can’t afford to wait and see where technology goes. We need to anticipate customer needs and implement solutions before they ask.

It’s not about choosing between tradition and change. It’s about blending them. Customers still want the reassurance of someone to talk to, but they also expect banking to be as easy as checking email. By delivering both, we make sure our communities don’t have to choose.

Tradition + change = the future of community banking

Cash will always have a role. Branches will always matter. But the ability to bank remotely, securely, and intuitively is no longer optional—it’s essential. At 22nd State Bank, we believe tradition and change aren’t in conflict. They work together.

Our legacy of trust, service, and community will always guide us. But by embracing technology as our “fifth branch,” we can deliver those values in new ways to more people and more securely than ever before. 

That’s how we honor our history, meet the needs of today, and prepare for tomorrow. Because at the end of the day, banking isn’t just about products. It’s about people. And our customers deserve both the comfort of tradition and the innovation that comes with progress. Make an appointment with us today to see how we can do both for you. 

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