At this year’s American Bankers Association (ABA) Washington Summit in Washington, D.C., one theme in particular stood out: the role of community banking in supporting a dynamic, resilient U.S. economy.
Comptroller of the Currency Jonathan Gould underscored this reality, noting that the Office of the Comptroller of the Currency (OCC) is actively working with industry partners to understand and address the challenges community banks face. This commitment demonstrates that community banking is top of mind for regulators and industry leaders alike.
Why Community Banking Is Essential
When people think of the U.S. economy, or finance in general, their minds often jump to Wall Street in New York City, or to Washington, D.C. But the real economic engine of the country is local – local businesses, farms, municipalities, and even school systems.
All of these segments have unique needs and funding demands. Community banks provide the necessary support to keep these regional pillars standing strong.
Community Banks Play an Outsized Role
Community banks are uniquely positioned to support local economies because they:
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Understand local market conditions and seasonal trends
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Know the risks, needs, and business cycles of their customers
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Provide access to credit and loans tailored to local realities
By providing access to capital, whether to buy a home, upgrade business equipment, or expand public offerings, community banks provide opportunities for growth and stability for the people and regions they serve.
Stability, in particular, is a pressing concern. With so many people and institutions relying on local banks, it’s critical that infrastructure is in place to protect customer assets during times of uncertainty.
Modern Challenges Require Modern Solutions
The 2023 failures of Silicon Valley Bank and other institutions serve as a reminder that resilience and stability build trust, and that trust is central to a bank’s success.
When customers fear their deposits may be at risk, they move quickly. Today’s digital capabilities make it possible for funds to leave a bank with a single tap. In this faster-than-ever environment, it’s even more important for banks to instill confidence in their deposits. They can do this by maintaining strong relationships not only with their customers, but with strategic partners.
Access to Expanded FDIC Deposit Insurance to Reduce Risk
That’s where R&T’s solutions offer an added level of reassurance.
Through the Demand Deposit Marketplace® program (DDM®), customer deposits that exceed the FDIC standard maximum deposit insurance amount (currently $250,000) are swept into a network that spreads funds across multiple banks in $250,000 increments per customer identifier (e.g., TIN)1. In doing so, customers gain access to millions of dollars in expanded deposit insurance coverage2.
This option enables banks to build greater confidence in their institutions. It also allows customers to maintain one primary banking relationship rather than scouting multiple banks to allocate funds to in order to access expanded FDIC deposit insurance. The DDM program aims to provide a simple, flexible deposit solution that benefits both banks and the customers they serve.
How R&T Supports Community Banks
Supporting community banks is core to R&T’s mission, which is to provide resilient deposit and funding solutions that help financial institutions grow and optimize capital management, while affording access to expanded FDIC deposit insurance.
Nearly 80% of our bank clients are community banks.
Working with them every day, R&T understands their needs deeply and provides tech-forward solutions to enable them to remain competitive with the largest institutions.
This commitment empowers community banks to deliver the high-quality service their customers rely on, while maintaining the personal relationships and local knowledge that make them indispensable.
With R&T as a strategic partner, community banks can strengthen their resilience, expand their capabilities, and continue fueling growth in the communities they serve.