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Old Second
Who are Old Second's core customers today?
Old Second transformed after the 2022 West Suburban Bancorp acquisition, doubling scale and shifting from a small-community lender into a regional suburban bank serving affluent Chicago collar counties. By mid-2025 it manages $5.9 billion in assets and targets households and SMEs in growth corridors.
Customer demographics center on middle‑to‑upper income suburban families, small and mid‑market businesses, and professionals aged 35–64; geographic focus is western Chicago suburbs with rising disposable income and business formation. See Old Second Porter's Five Forces Analysis for product overlap.
Who Are Old Second’s Main Customers?
Old Second Company serves both retail and commercial clients, with a B2B focus on loan growth through CRE and SMEs, and a B2C base of affluent professionals and retirees concentrated in the western Chicago suburbs.
Commercial Small-to-Medium Enterprises
SMEs with annual revenues of $1M–$50M, often family-owned in manufacturing, healthcare, and professional services, form a core B2B segment seeking loans and treasury services.
Commercial Real Estate Investors
CRE investors account for approximately 58% of total loans as of 2025, requiring construction financing and complex cash management solutions.
Established Professionals & Retirees
Consumers aged 45–75 hold the largest share of the bank’s $4.8B in deposits, with median household incomes above $95,000.
Emerging Affluent Professionals
Growth is strongest among ages 30–45, seeking residential mortgages and wealth management, representing the future pipeline of deposits and lending relationships.
The Old Second Company customer profile shows geographic concentration in suburbs like Naperville and Wheaton and a segmentation mix emphasizing CRE-led loan exposure and affluent retail depositors; see Competitors Landscape of Old Second for related context.
Segment Characteristics & Needs
Primary customer demographics Old Second Company target market and audience analysis highlight clear service needs across segments.
- SMEs: working capital, equipment loans, treasury management
- CRE investors: construction financing, CRE lending, cash management
- Established consumers: deposit safety, relationship banking, retirement services
- Emerging affluent: mortgages, investment advisory, digital banking tools
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What Do Old Second’s Customers Want?
Old Second Company customers prioritize relationship-centric banking and local decision-making, with commercial clients valuing direct access to lenders who understand Kane and DuPage County economics; retail clients demand omnichannel convenience while still using branches for complex planning.
Relationship-driven choice
Clients prefer partnership-style service over transactional interactions typical of national banks.
Local decision-makers
Commercial borrowers value speaking to local officers who factor county-specific market nuances into credit decisions.
Omnichannel convenience
By 2025, over 70% of routine transactions occur via mobile or online, reflecting strong digital adoption.
Branch access for complex needs
Customers still rely on branches for mortgage consultations, estate planning, and multi-generational wealth discussions.
Integrated digital-to-human experience
Integrated CRM reveals customers’ digital activity to branch staff in real-time, reducing friction in service handoffs.
Wealth management focus
Personalized wealth services target retirement security and multi-generational wealth transfer, sustaining loyalty.
Customer Needs and Preferences continue to center on accessible local credit decisions, omnichannel convenience, and personalized advisory services that match the Old Second Company customer profile and market segmentation.
Behavioral and practical drivers
Key pain points and preferences shape product delivery and marketing to the Old Second Company target market.
- Preference for relationship banking over automated, transactional models
- Commercial clients seek local underwriting and faster, nuanced credit decisions
- Retail clients use digital channels for 70%+ of routine tasks but require branch access for complex needs
- CRM integration reduces digital-to-human friction, improving retention and cross-sell
For related organizational context and values consult the article Mission, Vision & Core Values of Old Second
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Where does Old Second operate?
Old Second Bancorp focuses its operations within the Greater Chicago Metropolitan Area and Northern Illinois, operating over 60 banking centers concentrated in suburban collar counties with strongest share in Aurora and the Fox River Valley.
Regional Footprint
Concentrated presence across Kane, Kendall, DeKalb, DuPage, Will, Cook, and LaSalle counties supports deep local relationships.
Market Strength
Aurora and the Fox River Valley remain the strongest markets by deposit share and commercial lending volume.
Growth via Acquisitions
Integration of West Suburban branches boosted brand recognition in DuPage County and expanded middle-market commercial account competition.
Suburban Sales Distribution
Sales skew toward collar counties as businesses relocate from Chicago core, increasing commercial deposits and loan opportunities.
Local Marketing
Hyper-local tactics—sponsoring events in St. Charles and Joliet—drive higher community engagement than national campaigns.
Asset Quality
Focus on high median home-value areas supports a higher-quality loan portfolio and lower credit risk concentrations.
Competitive Moat
Strategic density in Northern Illinois creates a regional moat without the overhead of interstate expansion.
Commercial Focus
Targeting middle-market commercial accounts in affluent suburbs increased commercial loan originations and deposit balances post-integration.
Geographic Concentration
Concentration across key counties concentrates marketing ROI and allows precise Old Second Company customer profile targeting.
Further Reading
See the Brief History of Old Second for background on the bank’s regional evolution and expansion strategy.
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How Does Old Second Win & Keep Customers?
Customer acquisition at Old Second blends a digital-first funnel with community referrals for commercial clients and a high-touch retention model that preserves core relationships and lowers deposit costs.
Digital Acquisition
In 2025 Old Second expanded predictive analytics to flag small businesses outgrowing current banks, pairing this with targeted LinkedIn and SEO campaigns focused on 'Chicago commercial lending' and 'local business banking'.
Referral Networks
Commercial client sourcing relies on local attorneys, CPAs and real estate brokers, contributing to a 12 percent increase in new commercial loan originations year-over-year.
CRM Personalization
CRM-driven personalization delivers product bundles and fee discounts for high-balance deposit holders, supporting cross-sell and deeper wallet share among target segments.
Youth Retention
'Old Second Next' offers budgeting and early-investing tools aimed at younger customers to reduce churn and build lifetime value.
Retention focuses on a tiered loyalty structure and relationship managers; core commercial and HNW segments report a stable retention rate above 90 percent and lower cost of deposits due to reduced migration for marginal rate differences.
Target Market Fit
Primary audience includes local SMEs, commercial real estate clients and high-net-worth depositors within the bank's geographic footprint.
Segmentation Strategy
Segmentation uses revenue, deposit balances and industry verticals to prioritize outreach and product bundles for the Old Second Company target market.
Performance Metrics
Key metrics include new commercial loan originations (+12% in 2025), retention > 90% for core segments, and sustained low deposit costs.
Marketing Channels
Channels mix SEO, LinkedIn and analytics-driven outreach for acquisition, plus referral partnerships and in-branch relationship management for retention.
Customer Profile Insights
Typical customers are business owners and HNW individuals seeking integrated banking, lending and wealth services—see deeper analysis in Marketing Strategy of Old Second.
Retention Tactics
Personalized bundles, fee waivers, and digital engagement tools maintain loyalty and reduce attrition among younger and high-value customers.
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- What is Brief History of Old Second Company?
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- What is Sales and Marketing Strategy of Old Second Company?
- What are Mission Vision & Core Values of Old Second Company?
- Who Owns Old Second Company?
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