Small banks are unable to put endless resources into projects to test new technologies and must be more strategic in their thinking; they have started to take some lessons from their big bank counterparts by starting accelerators and working with fintech partners; they also work together, small banks and credit unions are pooling their resources to help each other work on innovative solutions; the core customer relationships that small banks rely upon are their biggest weapon; they understand what their customers need and finding creative ways to deliver that will ensure the smaller banks deliver products that compete. Source.