Bankruption

Chapter 1An Overview of the Bankruption

“Money can't buy life.”

—Bob Marley (final words before death)

Community Banking Has No Future

Community banks overdosed on arrogance and comfort in the status quo. The vice of Pride plays the long game. She starts harmless enough—young and reckless. Discerning and punctual. But Pride, a generation or three down the line, quite deeply cataracts and sloths. Bankers' kids become loan officers become CEOs become chairmen become barnacle board members of their grandkids' banks.

By and large, community banks are family‐begun businesses that have only lasted this long because banking competition was light, with controlled access points. The ultimate problem with family businesses, perhaps, is not pride—it's that blood overrules brains.

Credit unions, you're not off the hook, either.

Quite a bit of legacy thinking going on there, too, with far too many inefficiencies, a model the average consumer doesn't know or care about, and a belief system that outstrips capability. Oh and your boards are typically full of people who have no experience in banking or technology, and zero financial interest in the health or future of the credit union.

If any of that cut a bit too close to home, pay attention, it gets worse.

Because despite the tireless work of many thousands of passionate employees who sought to advance their community institutions from the inside, community banks and credit unions are bloated, outdated, human‐powered, ego‐driven, know‐it‐all, ...