Community banks in Missouri faced challenges during 2024 driven by technological advancements, regulatory burdens and ever-changing customer expectations. Growth in the delivery of banking products through digital and mobile platforms requires an investment in customer-friendly apps, cybersecurity measures and AI. The ability of Missouri’s community banks to leverage changing technology to compete with larger national banks is vital to our survival.
On the national level, overreaching regulation and legislation continue to challenge our community banking world. The thought that we aren’t too big to fail but we are too big to avoid overburdensome regulations created for the large national banks, in plain words, is simply not fair. Relief from this overburden hopefully is on the horizon.
Dealing with increasing fraud from check washing, elder abuse and debit/credit card compromises seemingly daily is not just frustrating but also costly. We community bankers know our customers. I wish that were true for the entire banking industry — that one simple thing would be the biggest deterrent to the fraud we are experiencing.
Compressed margins, liquidity, asset quality, capital, risk and economic concerns are always on our radar, and 2024 was no different for Missouri’s banking industry. The majority of Missouri banks are realizing positives in most, if not all, areas, but concerns are growing that weaknesses may exist.
In 2024, Missouri saw a new De Novo bank chartered, the first in many years. However, the contraction of bank charters continues at the state level and nationally.
The importance of the 2024 election is undisputable. The results will have significant impacts on our industry both positively and negatively in 2025. We now have a good idea of where the things are headed in the coming year, and we will manage accordingly.
MIBA continues to be an advocate of community banking in Missouri, representing us in Jefferson City, providing education opportunities and being the voice of the independent community banks in Missouri.
