Local Banking, Local Trust, Local Radio

Author: Annette Malave, SVP/Insights, RAB

Technology has transformed nearly every aspect of banking. Consumers can deposit checks with their phones, apply for loans online, transfer money instantly and access financial information with a few taps. At the same time, digital-only banks and financial technology companies continue to expand their offerings, giving consumers more choices than ever before.

Yet despite all the innovation, banking remains a relationship business.

When consumers make important financial decisions – whether opening a checking account, financing a vehicle, purchasing a home, starting a business or planning for retirement, they want confidence in the institution they choose. That is one reason local banks and credit unions continue to play a vital role in communities.

For all the attention paid to technology, trust continues to be one of the most important factors in banking relationships.

According to the American Bankers Association Customer Satisfaction Survey, 95% of Americans rate their bank’s customer service as excellent, very good or good. Nine out of 10 respondents believe their bank takes steps to protect them from fraud and scams.

Consumers expect financial institutions to provide security, transparency and expertise. They also want personalized service when major financial decisions arise. Community banks and local credit unions often have an advantage in this area. Their employees live and work in the communities they serve, understand local economic conditions and frequently build long-term relationships with customers that extend beyond individual transactions.

These institutions frequently support local businesses, sponsor community events, contribute to nonprofit organizations and help fund economic development efforts. Their visibility and involvement help reinforce trust while demonstrating a commitment to the communities they serve.

For consumers, that local connection can be meaningful. Choosing a bank is often about more than products and rates. It is also about confidence that the institution understands the needs of local families and businesses.

Today’s consumers are not choosing between technology and personal service. They expect both. Fifty-four percent of bank customers identify mobile banking as their primary banking method. Twenty-two percent prefer online banking via a laptop or desktop computer compared to visiting a branch (9%), using an ATM (6%) or making a phone call (4%), per American Bankers Association Banking Preferences Survey.

Banking preferences also vary by generation. Gen Z and millennials overwhelmingly prefer mobile banking apps, with 63% and 67% respectively selecting mobile as their preferred banking channel compared to 38% of baby boomers.

For financial institutions, attracting younger consumers has become increasingly important. Members of Generation Z are opening their first checking accounts, applying for their first credit cards, financing vehicles and beginning to think about homeownership and investing. While they are digital natives, they still value trust and authenticity when selecting financial service providers.

Data from J.D. Power’s U.S. Retail Banking Satisfaction Study found that younger consumers place significant importance on digital experiences, financial education and personalized guidance when evaluating banking.

Many Gen Z consumers are also seeking financial education as they navigate student debt, budgeting, saving and investing for the first time. This presents an opportunity for local financial institutions to position themselves not simply as service providers but as trusted financial partners. Educational content, financial literacy initiatives and community involvement can help establish credibility with younger consumers who are still developing long-term banking relationships.

One of the challenges facing financial marketers is timing. Consumers are not actively shopping for mortgages, auto loans, retirement services or business financing every day. However, when those needs arise, financial institutions want to be among the first organizations consumers consider.

Radio helps make that possible. According to Nielsen’s Audio Today 2026 report, radio reaches nine out of 10 adults 18+ each month, including Black and Hispanic consumers. Consumers listen while commuting, working, shopping and spending time in their communities. That consistent reach allows financial institutions to maintain awareness over time rather than relying solely on consumers to begin a search when a need arises.

Understanding what drives banking decisions among radio listeners can help financial institutions build more effective marketing campaigns. According to MRI-Simmons, 65% of adult radio listeners say customer service is very important when choosing a bank or financial services organization. The same is true for 58% of Black and Hispanic radio listeners. Customer testimonials, as well as service recognition awards and messaging that reinforces customer care can help financial institutions communicate this important differentiator to both current and prospective customers.

Convenience is another key factor in banking decisions. More than 70% of radio listeners use the internet to conduct daily banking activities and four in 10 use mobile banking apps regularly. At the same time, physical branch locations continue to matter. Forty-six percent of radio listeners say location is important when selecting a bank or financial institution. These findings reinforce the importance of promoting both digital convenience and local accessibility. Financial institutions that can effectively communicate via radio campaigns a seamless banking experience across devices, platforms and locations are well-positioned to meet evolving consumer expectations.

Radio also provides something many marketing channels struggle to replicate: familiarity. Listeners have long-standing relationships with local stations, personalities and programming. When financial institutions become part of that environment through advertising, sponsorships and community messaging, they benefit from the trust and credibility that local media can help reinforce.

Technology will continue to reshape financial services. New products, digital tools and evolving consumer expectations will create opportunities and challenges for financial institutions of every size. But one thing is unlikely to change: Consumers want to do business with organizations they trust.

For community banks and local credit unions, that trust is built through personal relationships, community involvement, expertise and consistent communication. Radio helps strengthen those connections by delivering trusted voices, local relevance and broad reach. In an industry built on confidence and credibility, that combination continues to be one of the most valuable assets a financial institution can have.