“Too big to fail” banking giants like to masquerade as community banks when it suits their purposes, but they will never be able to replace real, local bankers with deep ties to their customers, writes Independent Community Bankers of America Chairman Lucas White.1
That statement, made back in late 2024, reflected a belief long held throughout the community banking industry: the nation’s largest financial institutions simply lacked the authentic local connections necessary to truly become part of the communities they entered. Community banks knew their markets because they lived in them. Their executives coached Little League teams, served on nonprofit boards, attended church with their customers, and understood the economic realities of their local businesses and families. That kind of relationship banking could not simply be replicated by opening a branch, placing a familiar logo on the building, and running a few ads in the local paper.
At least, that was the thinking. The reality today is a bit more complicated.
Large national institutions, no longer content to dominate the major metropolitan markets, are building an increasing number of branches in smaller cities, suburban communities, and even rural markets traditionally served by local and regional financial institutions. And they are doing so with a very specific strategy in mind: combine the scale, technology, product depth, and marketing resources of a national institution with the appearance, accessibility, and personal service traditionally associated with community banks.
In other words, “big banks that feel small.”
Speaking on branch expansion, Tom Horne, Head of Consumer Branch Banking at Chase says, “customers are coming in wanting advice on investments, saving for the future, saving for their kids' colleges, and starting a small business.” According to Marianne Lake, CEO of Consumer and Community Banking: “For a lot of those things, people want to talk to somebody, not just do it digitally. When we open a branch, we’re not only investing in the financial health of residents, we’re committed to the health and vitality of the entire community. We provide local expertise and support through our branches; we lend to local businesses of all sizes, create jobs and long-term careers, and finance vital amenities that are the cornerstone of healthy neighborhoods such as hospitals, schools, transportation, and grocery stores.”2
In Charlotte, North Carolina, for example, JPMorgan Chase continues expanding its retail footprint, recently opening branches that bring their total in the city to 25 and surpassing 1,000 new branches nationwide since launching their major expansion initiative in 2018. Meanwhile, giants like Bank of America with 62 branches, Wells Fargo with 68 branches, and Truist Financial with 66 branches, continue strengthening their branch presence in a market of approximately 640,000 working adults that was once dominated primarily by local institutions.
Despite years of predictions about the “death of the branch,” physical locations still matter. We touched on this in our April 29 blog. Consumers continue to value in-person financial guidance, especially when making major financial decisions involving mortgages, investments, savings, retirement planning, and small business financing.
The megabanks can offer sophisticated mobile platforms, large ATM networks, expansive lending capabilities, wealth management services, advanced fraud prevention tools, and massive advertising campaigns. At the same time, they are increasingly training branch employees to emphasize personalized service, local expertise, and relationship-based banking; areas that historically belonged almost exclusively to community institutions. They’re also spending marketing dollars in markets, such as Charlotte, to tell potential customers about their new-found connections to the community.
To consumers, the distinction between “large national bank” and “local community bank” begins to blur and, perhaps in markets where the nationals see opportunity, that blurring is well on its way. This creates a difficult environment for community banks, and perhaps even some sleepless nights for community bankers.
The fact is, once large institutions successfully position themselves as both technologically superior and locally engaged, community banks are in a bit of a rock and a hard place position, no longer relying on relationship banking to attract and retain customers. Now, they must actively demonstrate why their local presence matters in ways larger institutions simply cannot duplicate.
Emphasize accessibility and responsiveness. While large institutions increasingly rely on automation, chatbots, centralized service centers, and digital self-service tools, community banks can continue differentiating themselves through human interaction and faster decision-making.
Customers still value being able to speak directly with someone who understands their history, their business, and their financial goals. Small business owners, for one, often prefer working with lenders who understand local market conditions rather than relying exclusively on centralized underwriting models driven by algorithms and national risk assessments.
Deepen grassroots. This is where community institutions still possess a powerful advantage. Large national banks can sponsor events and contribute funding, but community banks must continue to be the recognized driver behind a better financial life for the people around them.
That means offering free financial literacy workshops for families, first-time homebuyers, and small business owners. It means teaching budgeting and money management skills in local schools. It means partnering with chambers of commerce, nonprofits, and community organizations to support causes that matter locally. It means supporting local schools and sports teams, highlighting their connections to local businesses, celebrating community milestones, sponsoring civic events, and publicly participating in conversations about local economic development.
And importantly, these efforts cannot feel transactional. Consumers today are highly sensitive to performative marketing. They can often distinguish between genuine community involvement and carefully managed public relations efforts. Community banks succeed when their involvement feels authentic because, in many cases, it genuinely is authentic. The president of a community bank attending a local fundraiser, for instance, carries a different level of credibility when people know he or she actually lives in the area and has personal relationships within the community.
Keep getting the message out. Community banks cannot afford to assume customers automatically understand the differences between a truly local institution and a national institution attempting to market itself as one. Community banks must consistently reinforce their identity, values, accessibility, and commitment to the communities they serve. Importantly, that messaging cannot be occasional. It must become part of the institution’s ongoing public identity. Every piece of content, social media post, print ad, direct mail piece, and public appearance should reinforce the same message and in a predictable cadence: “We are part of this community because we live here, work here, and invest here.” In short, “own” the community connection.
Moving forward. The institutions most likely to succeed moving forward will not necessarily be the largest or the smallest. They will be the institutions capable of blending the speed and convenience of a digital banking experience with a genuine, personalized and human in-branch one. Digital experience being critical, of course, as banks compete for the younger generations of consumers that favor apps and online banking over visiting a branch. “About two-thirds of Generation Z (63%) and Millennials (67%) use mobile banking apps most often, while more than half of Generation X (56%) do so. This survey further underscores how mobile banking has become an essential part of everyday financial life for many Americans. At the same time, branch banking remains an integral channel for consumers who prefer face-to-face interaction, which can be beneficial for more complex transactions.”3
Large national banks are clearly attempting to move in that direction. The question now is what community banks will do to preserve the identity and relationships that made them valuable in the first place.
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1American Banker. Chase, and other banks aren’t—and never will be—community banks. November 27, 2024.
2Axios. Chase open more Charlotte branches even as teller visits decline. August 1, 2025.
3American Bankers Association. National Survey: Bank Customers Continue to Use Mobile Apps More Than Any Other Channel to Manage Their Accounts. November 18, 2025.