How Authenticity Powers the Future of Community Banking

In a world increasingly dominated by digital channels, mobile apps, and billion-dollar national bank expansions, many are asking: Is the model of community banking still viable? 

At the recent BankSpaces retreat in Clearwater Beach, a panel featuring Jason Furer, EVP and Director of Customer Experience at WesBanco, and Kevin Sloan, EVP, Head of Retail Banking at KeyBank, tackled this existential question head-on. Moderated by Jean-Pierre Lacroix, President of SLD, the conversation revealed how community banking is undergoing a profound transformation.

The Community is No Longer Just a Map Pin

The first, and perhaps most critical, takeaway from the discussion was the shifting definition of "community."

Lacroix highlighted research indicating that while consumers crave community involvement from their financial institutions, the geographic boundaries we traditionally associate with a bank’s physical market are dissolving. As Furer noted, the world is flattening: communities are now defined by shared interests, affinity groups, and online platforms like Peloton or gaming communities—not just the neighborhood where you grew up.

Sloan emphasized that in pursuit of convenience (digital, mobile, and ATMs), the industry inadvertently "lost a little bit of the human interaction." This pursuit of scale and convenience, often mimicking the big national players, is precisely why regional banks are now lagging in community connection, according to SLD’s research.

This changing landscape presents a massive opportunity: banks must pivot from simply asking, "Are we physically present?" to asking, "Are we there in the communities, physical or digital, where our customers truly want to be?"

The War for Loyalty: Shareable Moments, Not Just Services

Lacroix shared a powerful insight: the factors that reduce attrition (good customer service, competitive products, convenience) are different from the factors that drive growth. The number one driver of growth? Shareable moments tied to community.

The panel provided tangible examples of how their institutions are walking the talk:

• KeyBank's "Three E's": KeyBank has designated a third of its branches as "Community Banking Branches" focused on three principles: Engage, Educate, and Empower. Sloan pointed to their annual "Neighbors Make a Difference Day" (a 34-year tradition where corporate staff volunteers in the community) and the nationally recognized Key for Women program, which moves beyond marketing to provide certified advisors, networking, and business support—often hosted directly in their branches.
• WesBanco’s High-Touch Strategy: Furer acknowledged that WesBanco "can't outspend the big banks." Instead, they double down on showing up in person. For them, community involvement isn't just sending a check; it's being leaders on local committees, actively participating in events like "read to your kid at school day," and sponsoring local activities.

The Unexpected and Powerful Role of Social Media

Furer revealed how WesBanco partnered with a company to provide "ambassador training" for employees to use social media. By encouraging staff to share their community involvement, the bank creates a "buzz" that makes it look bigger than it is and, crucially, attracts new talent. "It looks like we're bigger than we are," Furer said. "It's still relationships, it's still people at the end of the day."

Finally, addressing a question from the audience about national banks targeting college students, Furer offered a final strategic imperative: stop waiting.

"If you're waiting for college students to be your clients, you're probably too late," he warned. WesBanco is now actively targeting younger bankers earlier with enhanced products. By leveraging the deep loyalty of parents who have stuck with them through multiple bank changes, they aim to capture the next generation before the national players can.

The future of community banking rests not on competing with the national banks' mountains of capital, but on leveraging authenticity, human connection, and a dedication to the community—both online and off – with the branch being a core component of this strategy.

Watch the full conversation below 👇