New research out of North Dakota State University confirms what many in community banking already know: when consolidation goes too far, something important gets lost. Not just competition, but the kind of bold, ground-level innovation that only happens when banks stay close to the businesses and communities they serve.

The Account Opened. The Relationship Didn't.

I've sat with a lot of community bank executives who are proud of their commercial deposit growth numbers; as they should be. Building a commercial DDA pipeline takes real relationship capital. But there's a metric that doesn't get enough attention in those conversations: funded account activation. Because opening a commercial account and becoming a business's primary operating bank are two very different things.

New research from PYMNTS puts numbers to something I've been seeing firsthand for years. Community banks aren't losing the commercial deposit battle at account opening. They're losing it afterward, when the business tries to actually use the account and the bank's payment infrastructure can't keep up with how that company moves money.

Community banks are under pressure as efficiency ratios tighten and non-interest expenses continue to rise.

While most institutions focus on expense management, one of the most overlooked opportunities is on the revenue side with treasury management and commercial deposit relationships.

When treasury services are fully activated, they strengthen deposit stability, increase non-interest income, and deepen commercial relationships beyond rate sensitivity.

In this environment, improving efficiency ratio is not just about cutting costs, it’s about capturing more value from existing relationships.

Download Treascent’s free Treasury Management Hiring Checklist built for community banks and credit unions that want to grow treasury and deposits with confidence.

I'm thrilled to announce Treascent’s new partnership with Evolv!

Merchant services play a critical role in helping community banks and credit unions grow and protect commercial relationships. That’s why I was very intentional about choosing the right partner - one that shares my values and commitment to local communities.

Evolv delivers innovative merchant services and digital solutions that will help Treascent's financial institution clients strengthen relationships, grow deposits, and unlock new opportunities. I can't wait to see the impact this collaboration will bring!

I had the pleasure of joining Byron Earnheart on the Main Street Banking podcast last month to discuss the fundamentals of Treasury Management and why it matters for Community Banks. In our conversation, we explored practical ways banks can strengthen client relationships, grow non-interest income, and implement simple strategies that make a big impact for business relationships.

Tracking the right treasury KPIs helps community financial institutions drive performance, retain clients, and grow treasury revenue. When measured consistently, these metrics provide the insights needed to make strategic, data-driven decisions.