When a national powerhouse like JPMorgan Chase announces a new wave of branch openings, which they did just recently in The Financial Times article, “JPMorgan plans branch opening spree as peers bet on in-person banking,” it’s yet another reminder that 1) physical banking isn’t going anywhere, and 2) that the local markets that community banks serve are “up for grabs.”
For years, the industry narrative suggested that digital channels would replace the branch. But over those years, that narrative has taken a number of twists and turns; the larger banks continue to build branches, often in the smaller markets that community banks have called home. Why? Their continuing effort to steal share of wallet from local, community-focused institutions.
For community banks, that kind of expansion can be more than just a little concerning. Larger institutions are building branch offices right next door to long-loved local banks, and those big banks have access to far greater resources, in both manpower and dollars. But here’s something, I think, worth considering; when megabanks move into a market, they aren’t necessarily eliminating the advantages community banks hold. In some cases, they’re validating them. The real question isn’t whether the smaller banks can outspend the bigger ones; it’s a question of whether or not they can “out-relationship them,” which is no small feat.
Why the Branch Comeback Matters
Large banks are investing in physical presence because deposit competition is fierce, and leadership understands that face-to-face trust still matters. In other words, they’re leaning into the very strengths community banks have relied on for decades. The difference is scale. And while big banks must work hard at manufacturing and marketing their “personal connection” to the community, the smaller, local banks already own it.
That’s the opportunity. Community banks must double down on what scale can’t replicate; personalization, accessibility, and their authentic, trusted connection with the neighborhoods they serve. This is where Bank Marketing Center can play a strategic role. Because marketing teams at community banks are often small and stretched thin it is even more critical to have access to services and suppliers that can help close the resource gap. Having ready-to-customize, compliance-ready messaging that consistently reinforces “trusted relationships”” as central to a community bank’s brand, for one, can help these smaller banks respond to market demands quickly, easily, and cost effectively.
Creative, compelling campaigns that highlight local impact, personalized lending decisions, and community involvement enable community bank marketers to position their branches—and differentiate themselves from their bigger competitors—not as transaction centers, but as trust centers. For example, they should be using their social media platforms to remind their local market that as their local bank, they are the bank of choice:
Branches v. Belonging
Large banks can build branches, but using messaging like the above, community banks can build belonging. After all, a bank branch should be more than just a place to deposit a check or cash one. A bank can, and should, take an active role in the local area, from hosting financial education workshops to participating in fundraising events.
Competing Beyond Rates
As deposit competition intensifies, it’s tempting to default to rate-driven messaging. While rates matter, they rarely build loyalty on their own, just as lower prices cannot build brands. As my long-time ad agency idol David Ogilvy once said, “relying on price as a continual differentiator is not a sustainable long-term strategy.” Community banks have other powerful levers: stability, continuity of relationships, direct access to decision-makers, and service flexibility. Marketing messaging can bring those strengths forward; messaging that emphasizes real conversations, local lending decisions, and accessibility. These can truly resonate in an environment where customers, such as those who bank at the bigger banks, often feel like numbers.
Telling the Stories That Matter
Large institutions tend to market products. Community banks have the opportunity to market people, small businesses, and the successes they bring to customers . There is power in telling the story, for instance, of a small business that secured funding quickly, a family navigating its first mortgage, a farmer expanding operations, or a nonprofit event that was successful because of a bank’s participation/sponsorship. When these stories appear in newsletters, on social media, or in direct mail, they humanize an institution. Prospective customers don’t just see products; they see their neighbors being supported.
The Bottom Line
National branch expansion is not necessarily a threat. It can be a validation. It can confirm that personal interaction, and relationship-based banking still matter… when those small bank competitive advantages are communicated consistently. Community banks have always excelled in those areas. With strategic marketing support from Bank Marketing Center, community banks can reinforce trust, highlight personalization, support frontline staff, and execute the compelling consistent campaigns that will help them win the battle with the big banks.
Bank Marketing Center
We’re Bank Marketing Center, the leading subscription-based, automated marketing platform designed especially for community banks. We are presently helping the marketers at over 300 financial institutions craft and distribute topical, compelling marketing communication that builds trust in their brand, deepen customer relationships, and grow revenue.
We do this by automating the essential marketing functions banks rely upon; content creation, social media scheduling and monitoring, digital asset management, compliance routing, and more.
We also believe in sharing what we know and learn. Whether it’s insights on the latest AI tools, tips for attracting and retaining top talent, a webinar on operational efficiency, or what experts are saying about the future of banking, we’re committed to helping community banks thrive. And by working with our 300+ partner banks, we know what's working and what's not. We know what community bankers need. We see the trends daily and are constantly adding new content to the portal to meet those needs.
Want to learn more about what we do for bank marketers to help them succeed? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.