Why now is the perfect time for banks to connect with consumers.

The wagons are circled, the deadbolt is thrown, and the budget is clamped down tight.

While this statement could be referring to any number of industries today, it most certainly rings true for the majority in the banking industry. We are all painfully aware of the on-going upheaval in the financial markets. Banking is in chaos. It’s the media’s topic du jour and is not likely to dissipate soon. The press will continue to hound banks, looking for the conspiracy, because people love to lay blame on someone or something. It’s human nature.

But is it fair to target the Big Four on the Wanted Poster of our current recession? No doubt that Bank of America, Citi, Wells Fargo and Chase all played roles in the current economic crisis, but there is more than enough blame to go around. Investment Banks, Mortgage Lenders, past political administrations (i.e. 1990’s), and even the Federal Banking regulators all helped shape the mess we’re in now. And lest we forget, the American consumer must shoulder some of the blame, too. Their credit-binging habits pushed many to live beyond their means, leading to personal bankruptcies, foreclosures and retirement disaster.

Where does that leave the remainder of the approximately 7,600 regional and smaller banks? Guilty by association? Unfortunate but true.

The media’s net has cast most banks under the same cloud of suspicion and ridicule. Strong, healthy banks are seeing their stock price pummeled by the daily negative barrage from Wall Street. It’s not to say that all of these smaller banks are void of bad decisions or poor credit management (17 banks have failed so far this year). But generally speaking, these are the banks that are lending, are rejecting TARP, and are trying to stay afloat.

So what can the regional and smaller banks do to shed some of the negativity and even move the needle forward a little? Get back to fundamentals.

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