According to the Community Association Institute, approximately 21% of Americans live in common-interest communities. For banks, particularly those that are in FL, CA, TX, IL, NC, NY, MA and GA (in order) on a client acquisition-cost-to-cumulative-lifetime-value basis they are one of the best clients to have. The reason for this is that they are plentiful (over 342k of them in the U.S.) they have high deposit balances, and they generate large fees with their lock box activity.
Last week we wrote a piece that the biggest threat facing banks is complacency around our traditional processes. Disruption threatens our industry at every turn and even within our industry there is a growing divide between large banks and community banks. Today, we highlight one such area as it an example of our point nicely and highlights the many problems that banks need to overcome in order to create a better process.