Your work is to discover your work and then with all your heart to give yourself to it; Buddha

The society has become worried that banks, in their capacity, as authoritative financial authorities cannot protect their clients financially. This shift in banking paradigms is an opportunity for smart entrepreneurs who can turn such problems into opportunity. The society felt challenged and completely insulted by the failure by banks to protect them from foreclosures and mortgage related problems when the economic crisis struck. This problem adversely affected consumer confidence in banks, regardless of their background. The need for a proper banking model that is more sensitive to consumers within a micro-society system is dire.

The opportunity here lies within capping the discord or rather, this shift in perspective about banks being vital institutions for macroeconomics. The community is a micro-society. Arguably, a community is a functional unity of the economy. By providing a solution to fears on fiscal weaknesses within the major economy, the micro-economy rather needs an assuring model bank that has no profound affiliations that force bureaucratic policies and ship money away for other intricate investments like hedge funds.

A community bank is a solid solution to such an uncertain community. Such a model bank is ideal since most of the operations are centralized and the business profitability can mainly be charging for services rather than huge depository investments. Currently, consumers are feeling wary of banks. Banks have failed to provide enough financial services to meet the dynamic lifestyles of many members of the society. It is important that, services and products be designed to meet such dynamism.

There is an urgent need to set up small community banks. They are an opportunity yet provide the much-needed confidence in such sectors. Small communities banks can be modeled from a micro-finance model and survive in a rapidly changing environment. The community banks should be modeled to meet consumer demands. Consumers within the community level are in need of services they feel more familiar with than banking with big names that cannot provide insulation on investments during stormy business weather. Most importantly is to tap in the lending sector where more community members are looking for alternatives that can provide financial assistance in creating business, investments and other important development programs.

Robin Trehan, is a M&A expert. He can be reached at