Crisis Creates Opportunity for Small-Bank Programs

[Dover]

A silver lining exists in the ongoing financial crisis for small banks with strong balance sheets — this is an ideal time for them to woo customers and executive talent from the faltering titans and to build their investment programs, according to third-party marketers.

"The larger banks are facing tougher times today, and community banks are positioning themselves to grow and seize opportunities in the marketplace," said LeAnn McCool, the national sales manager at Primevest, which supplies brokerage services to 350 small banks.

Lynn Niedermeier, the president of Invest, which works with 150 banks, said, "In the past the big question was, 'How will I compete with Smith Barney, Goldman Sachs and Merrill Lynch?' And today the answer is, 'Now you can.' "

Program managers and advisers are seizing this opportunity to expand their client bases and brokerage programs by stressing stability and community ties, and delivering personal service and advice.

Research indicates that deposits are moving to community banks from big banks with staggering losses, and financial advisers say they are turning this to their advantage...>


http://www.americanbanker.com/printthis.html?id=200903108LAH8WOM

[eridani]

1. Not to mention customers

I deal with three credit unions and Union Bank, which has a 5-star rating.