Creating Community Momentum

Greetings...

I am sure you have heard of synergy and the sum of the parts is greater than the whole, right?  Its when the results outpace the inputs...and that is what community banking is all about!

To me...that is the SINGLE GREATEST impact of a community bank and credit union.

While many people call it creating community momentum...I call it "THE TURN."  In technical economic terms, its called Monetary Velocity.

Let me explain...

Three customers...with only $50 between them, are both customers of a Community Bank or a Credit Union.

• Customer "A" deposits $50 into the bank
• Customer "B" borrows that same $50 from the bank
• Customer "B" purchases $50 worth of good and services in the local community
• Customer "C" a local business, who sold the goods and brings in a $50 deposit

With "The Turn" we have now created $100 in deposits (the original $50 plus the $50 business deposit) AND we have created $50 in loan balances.  At the same time we generated $50 worth of business economic activity...ALL KEPT IN THE LOCAL ECONOMY.

We effectively turned $50 into $150 of economic power for the local economy and local community.  That ladies and gentlemen is the power of the turn!!  We created velocity and true impact!

Now...imagine that same $50 is actually $20,000,000.  The Turn is a powerful and compelling force of economics.  That $20,000,000 could become $60,000,000 worth of economic impact.  THAT is a compelling story to share with customers, tell the local media and important information to educate staff.  The Turn is the primary advantage a community bank and credit union has in local communities and one that we rarely, if ever, calculate and promote!

Here are three steps to increase your TURN:

1. Generate more deposit dollars
2. Acquire more small businesses customers
3. Generate retail and small business loans with your local customers

This will create and enhance the velocity in YOUR community and you can actually track a portion of the local economic impact of your community bank/credit union by tracking where deposit dollars and loan dollars are generated.

Simply another way of improving the local economy and helping ourselves to grow by helping our local community!

Cheers

Bruce



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