In today’s fast-paced, digital environment, clients expect convenient, high-quality service across every area of their financial lives. The rise of integrated products and services – combined with the ongoing Great Generational Wealth Transfer – has brought these expectations to the forefront. Next-generation clients increasingly look for a single, trusted source that can help them manage banking, investing and planning needs seamlessly.

For community banks, this shift presents both a challenge and an opportunity: the challenge of meeting evolving expectations without overextending resources, and the opportunity to strengthen relationships by broadening service offerings.

Expanding Services Without Losing Focus

Offering wealth management and personal financial management tools can be a strategic way for community banks to enhance their value proposition and deepen client loyalty. Yet, many institutions are not taking advantage of this opportunity. According to the 2024 CSBS Annual Survey of Community Banks, only 36% of respondents currently offer wealth management services, and 42% provide personal financial management tools.

By contrast, more than half of the surveyed banks said they have no plans to offer wealth management in the near term, and nearly half do not plan to provide personal financial management tools.

One reason for this hesitation is the complexity of building an in-house program. Launching and maintaining investment services requires dedicating resources to personnel, technology, compliance oversight and operational infrastructure – resources that may be difficult to allocate without impacting the bank’s core operations.

The Role of Strategic Partnerships

For banks that want to expand into wealth management while maintaining focus on their primary mission, partnering with an experienced wealth management firm can be a practical solution. The right partner can help design a program that aligns with the bank’s goals, integrates smoothly into existing operations and offers flexibility in how client relationships are managed.

Key benefits of these partnerships can include:

• Access to technology platforms that improve efficiency and client experience.
• Connection to a network of investment professionals.
• Support for business continuity and succession planning.
• Compliance oversight tailored to the institution’s needs.
• A range of investment products suitable for various client goals.

More importantly, program structures can be customized – whether through contract design, compensation models or client relationship ownership – to reflect the culture, values and long-term vision of the institution.

Meeting Today’s Needs While Preparing for Tomorrow

Competition for client relationships is stronger than ever. Institutions that retain assets locally and offer comprehensive financial solutions are well-positioned to remain a central part of their clients’ lives. Wealth management services not only help reduce deposit attrition to outside providers but also enable banks to deliver the next level of service – helping customers pursue long-term financial well-being with the guidance of a trusted local institution.

Each community bank is unique, with its own culture, customer base and strategic priorities. Their shared aim is to build lasting relationships by delivering the services needed now and in the future.  Thoughtfully expanding into investment and planning services – whether through in-house capabilities or a strategic partnership – can help achieve that goal while staying true to the values that define community banking.