Key Takeaways
- Equip your team for versatility. Community bankers juggle multiple roles; providing them with on-demand industry intelligence and training ensures they make informed decisions with confidence.
- Move from broad outreach to strategic segmentation. Banks that focus on high-value industries in their local markets will build stronger client relationships and drive smarter growth.
- Leverage AI to enhance—not replace—relationships. AI-driven insights can streamline decision-making, personalize customer interactions, and free up time for bankers to focus on what they do best: building trust.
Optimism was the prevailing sentiment at the American Bankers Association’s Conference for Community Bankers this year. As the ABA marked its 150th anniversary, discussions centered on growth, resilience, and adaptation—especially in an evolving lending environment and the rapid advancement of AI in banking.
But beyond the celebratory tone, the conference also underscored some of the biggest challenges facing community banks today: balancing multiple roles with limited resources, segmenting customers for smarter growth, and leveraging AI without losing the human touch. Here’s what stood out—and how industry intelligence can help community bankers navigate these shifts in 2025 and beyond.
1. Mastering the art of wearing multiple hats
Community banking is defined by its all-hands-on-deck culture. Unlike national banks with specialized teams, community banks rely on employees who can shift seamlessly between roles—a Relationship Manager may double as a portfolio manager, while a Junior Credit Analyst might find themselves leading customer meetings.
While this versatility is an asset, it also presents a challenge: how do you equip employees with the right knowledge to excel in multiple roles? With talent retention already a top concern, banks must ensure their teams feel empowered, not overwhelmed.
How banks can take action
- Invest in industry intelligence tools that help staff make quick, informed decisions.
- Train employees across functions so they can confidently support customers, whether in lending, risk analysis, or relationship management.
- Leverage automation to offload routine tasks and allow staff to focus on strategic, high-value work.
How IBISWorld helps
IBISWorld provides on-demand industry research, so bankers don’t have to be experts in every sector to offer strategic guidance to clients.
- Industry intelligence for training & onboarding: New hires and cross-functional teams can quickly get up to speed on industry trends, risks, and financial benchmarks.
- Benchmarking & risk analysis: Credit analysts can compare business performance against industry standards, streamlining risk assessments.
- Instant access to market insights: Relationship Managers can confidently discuss a client’s industry without hours of research, ensuring more productive, insight-driven conversations.
With the right tools, community bankers can embrace their versatility without sacrificing expertise.
2. From broad outreach to smart segmentation
Community banks have a built-in advantage over larger institutions: deep local knowledge and the ability to specialize. Yet many still take a one-size-fits-all approach to customer outreach, missing the opportunity to build more strategic, industry-specific relationships.
Why it matters now
As businesses become more selective about their banking partners, community banks that position themselves as specialists will have the edge. Instead of spreading efforts too thin, the key is targeting industries where the bank can add the most value.
Smarter segmentation in action
- Identify the dominant industries in your market: Are contractors, healthcare providers, or professional service firms your biggest customers?
- Develop sector-specific strategies: Different industries have unique financing needs; a targeted approach will resonate more than a generic pitch.
- Equip bankers with industry expertise: The more a banker understands their client’s sector, the stronger the relationship and trust.
How IBISWorld helps
IBISWorld equips banks with actionable insights into local industries, helping them refine segmentation strategies and deepen customer relationships.
- Pinpoint the most lucrative business segments using data on local industry concentrations.
- Understand sector-specific financial challenges to craft more compelling lending and advisory strategies.
- Enable relationship managers to have expert-level conversations about industry trends, risks, and opportunities—strengthening client trust and loyalty.
Banks that move from broad outreach to precise segmentation will stand out as trusted industry specialists.
3. AI in community banking: A competitive advantage, not a threat
AI is no longer a futuristic concept—it’s already reshaping community banking. While many institutions are still in the early stages of adoption, AI is increasingly being used for fraud detection, customer data analysis, and optimizing digital banking experiences.
The key challenge: Maintaining the human touch
Historically, AI has been seen as a tool for large banks with deep tech budgets, but that perception is shifting. With regulatory barriers easing, smaller banks now have access to AI solutions that enhance efficiency without replacing relationship-driven banking. The real opportunity lies in using AI to empower employees—not replace them.
How banks can take action
- Adopt AI tools that streamline decision-making, freeing bankers to focus on client relationships.
- Use AI to personalize customer interactions, ensuring the right financial solutions are offered proactively.
- Train staff on AI-assisted decision-making, so they see AI as an enabler rather than a disruption.
How IBISWorld helps
IBISWorld’s AI-powered research assistant, Phil, makes industry intelligence more accessible, faster, and easier to integrate into decision-making.
- Get instant answers to industry-specific financial questions—no more manual searching.
- Support loan assessments with fast insights, from profit margins to debt service coverage ratios.
- Enhance client interactions with Phil’s AI capabilities, helping bankers rapidly craft communications that make a lasting impression.
AI isn’t replacing bankers—it’s giving them the tools to be more efficient, informed, and competitive.
The road ahead: Competing with the big banks on new terms
For years, community banks have competed with larger institutions despite having fewer resources. But the playing field is shifting. Greater access to industry intelligence, AI-powered efficiencies, and smarter customer segmentation strategies are closing the gap.
What Sets Winning Community Banks Apart?
- Well-equipped teams: Trained to wear multiple hats without sacrificing expertise.
- Smarter industry targeting: Moving away from broad outreach toward strategic specialization.
- AI-driven efficiency: Using technology to enhance decision-making, not replace personal relationships.
Final Word
As 2025 truly gets underway, the most successful community banks will be those that embrace these advancements and position themselves as trusted, specialized financial partners.
How will your bank leverage data, AI, and segmentation to stay ahead?
Let’s start the conversation. Explore IBISWorld’s industry intelligence tools and see how we can help your bank grow.
