How Feasible is Your Market?
This is a question that many ask themselves when considering starting a community bank. Many groups find themselves not knowing just how viable a bank is in their local community. Yet these experienced professionals have lived in the community for years and have fair knowledge of the community's economic outlook.
Is the local economy a great indicator for a de novo bank? The local economy and its outlook are only a partial factor in determining how promising the market really is. There are other factors to consider. Demographics are of importance to determine if the products and services the de novo plans to offer are a perfect fit for this community.
Why is this important? Without full knowledge of what the area looks like, the de novo will have difficulty reaching its capitalization and marketing goals. This, in turn, creates a bind for the de novo and places it in a crucial decision making dilemma in determining a course of action to save itself from demise.
If a group decides to start a bank in a community that they feel will embrace the institution based solely on their experience with that community and without doing their homework, their is a greater risk of failure. They may know their neighbors, but do they really know their community?
Examples of Feasibility Reports
New York & Boroughs |
Cherry Hill, New Jersey |
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Current Analysis |
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For a specialized report please visit startabank.com to further explore the feasibility of a de novo charter in your community.
