Competitive Threats: How Small Banks are Coping

Ask community bankers what is keeping them up nights and many will say "competition" — for loans, deposits, fee business and even talent. The competition is coming from big banks, nonbanks, credit unions, Farm Credit lenders, and other community banks, and bankers say it has never been fiercer. This collection of articles looks at some of these competitive threats, how some community banks are coping, and how others are trying to separate themselves from the pack.

P-to-P Lending

Companies that allow friends and strangers to lend and borrow money online are becoming more accepted within the financial services industry, but are also facing more regulatory concern. Some have had to temporarily shut down while to revamp their business models, but have emerged with new services, notably secondary markets. One thing is clear: you don't need to be a banker to make a loan, and you don't need to visit a bank to get one.