In today’s financial industry, banks face shrinking margins and customers have a myriad of options for financial services. Financial institutions looking to find the key to growth and continued success must take new approaches and look beyond offering traditional bank services.
At least that’s what Banterra Bank of Eldorado, Illinois, is doing. And so far, it’s working. The bank has grown assets significantly over the past five years. In fact, its ROA and ROE—1.1 percent and 11.2 percent, respectively—are above industry average.
Banterra’s Strategies for On-going Success
Banterra took a new approach to growth through three primary strategies:
- Expanding the Bank’s Footprint
The bank is focused on expanding its footprint beyond Illinois, having opened branches in three additional states to date. By offering new types of lending and offering competitive services, while expanding its branch network into other areas, the bank is delivering competitive products and services to a growing retail deposit customer base.
- Making Security a Priority
To complement its expansion strategy, Banterra also places a heavy emphasis on protecting customer data and the integrity of its systems. Cybersecurity has emerged as a significant threat to all banks, and Banterra realizes the risks associated with a data breach or system compromise. So, the bank uses such services as penetration testing to identify and remediate any system vulnerabilities that may exist.
- Delivering Digital Solutions
Banterra’s leadership also understands the need to expand its business model beyond traditional offerings. That’s why the bank is focused on delivering digital banking solutions that allow them to compete with online alternatives, like Ally Bank, which have greater reach and lower overhead.
Changing Focus to the Future of Banking
Banterra’s focus on geographic expansion, customer and system security, and digital technology offerings has allowed it to achieve impressive results. And by rising to the occasion through recognizing the direction of the industry and embracing innovative strategies, the bank has not only remained competitive, but also experienced on-going growth and success.