High touch is back--with a high-tech sheen.

• Position: Marketing News - Community banks are losing deposit race - Brief Article

Community banks are losing the deposit race. A study by Grant Thornton LLP shows that banks with assets of less than $1 billion held less than a quarter of the nation's deposits as of mid-year 2001 compared to more than a third of alt deposits only seven years ago.

Big banks, meanwhile, have been increasing their deposit share, and they now hold 56.7 percent of all deposits nationwide-and even more in some major metropolitan areas.

However, Grant Thornton reports, aggressive community banks have had some success in reclaiming customers by emphasizing Local ties and personal service in their marketing efforts.

"The bankers in this survey report a widespread involvement in their communities, in many activities unrelated to banking," the report says. "Almost all participate in civic groups (94 percent) or their local chambers of commerce (92 percent). The vast majority work to support local schools (89 percent) and participate in events such as parades and festivals (80 percent)." Most also participate in local relief efforts and offer help to low-income segments of their communities.

Community bankers increasingly are finding, however, that technology makes it possible to identify--and meet--the needs of their consumers. Emboldened, they're moving into...