It's not all dark skies for community banks. Emerging fintech services will enable community banks to reduce their cost base, market in more meaningfully relevant ways, and evaluate risk using more data (which will mean more money lent to customers).
The shifting market does require action, though.
Community banks have long been the mainstay of small towns and cities across America in providing traditional banking activities of local deposit gathering and community-based lending...their share of total U.S. banking assets fell from 38% in 1984 to just 14% in 2011....banks having over $10 billion in assets, numbering just over 100, have grown to capture 80% of industry assets. ...community banks face an existential threat from the emerging breed of digital “FinTech” lenders who pose a direct challenge to their core business lending activities. Fintech companies are moving rapidly to take advantage of fundamental demographic forces, changing behavior among prospective commercial borrowers, and the capacity to use “big data” in highly effective ways to better serve their commercial customers.