Community Banks Face Urgent Need to Modernize Amid Digital Banking Disruption

As digital-first banks and fintech disruptors reshape financial services, community banks face a crucial turning point—adapt or risk being left behind. Bryan Peckinpaugh, SVP, National Sales Manager at Baker Hill, discusses the urgent need for community banks to embrace technology while preserving their core mission: serving local businesses and economies. "Banking isn’t just about deposits and loans—it’s the foundation of our communities," said Peckinpaugh. "The money that community banks lend powers small businesses, funds local infrastructure, and supports the dreams of entrepreneurs. Without them, our towns and cities would look vastly different."

Community banks and credit unions fuel economic growth, yet many struggle to compete with the speed and efficiency of digital banking. Peckinpaugh highlights how traditional institutions are hindered by legacy systems that prevent them from delivering the seamless experience customers expect. "In today’s market, a consumer can order nearly anything online in minutes, yet getting a business loan from a traditional bank often takes months," he explained. "That’s not a sustainable model. If community banks don’t modernize, they will lose their relevance—and that’s a loss no town or small business can afford."

For over 40 years, Baker Hill has been at the forefront of financial technology, helping community banks modernize while maintaining the personal relationships that set them apart. Through AI-driven lending solutions, process automation, and cutting-edge digital tools, Baker Hill empowers banks to focus less on administrative burdens and more on advising their customers. "We believe the future of banking isn’t just digital—it’s digital with purpose," said Peckinpaugh. "Our mission is to free up bankers to do what they do best: serve as trusted advisors and advocates for their customers."

With its platform facilitating over $1 billion in monthly lending activity across 400 financial institutions, Baker Hill is proving that technology and tradition can work together to create stronger financial institutions. The company is also launching innovation campuses across the U.S., with its latest venture in Santa Barbara, CA, and an upcoming expansion in Texas. To further its mission, Baker Hill is hosting Lending Forward 2024, the premier community banking conference, in San Diego this May. The event will feature renowned thought leaders, including Malcolm Gladwell, alongside industry experts discussing the future of financial services. "This isn’t just a conference—it’s a movement," said Peckinpaugh. "We’re calling on community banks to take control of their future, embrace innovation, and reclaim their leadership in local economies."