There is a plethora of choices when it comes to who to bank with. Here’s why you should bank locally.
Community banks have a deeper understanding of their customers’ financial needs and provide a more personalized banking experience than their multinational counterparts. A community bank is tied to the area it serves, and its star attraction is relationship-based banking services.
Big banks tend to place more of their focus on corporate lending. They do have a wide range of financial products and services for both business and consumer clients due to their sheer size, but that should not be the dealbreaker when considering a bank. Community banks can provide the exact same type of services that a regional or national bank does, but with the advantage of a personal touch.
Big banks often have rigid systems and processes, which can make dealing with them difficult. If you need help from customer service, you may be forced to call a national toll-free number where no one knows your situation. You may also have to deal with other non-local staff in various departments at account opening or after, whenever you have questions or concerns. Contrast that experience with a community bank, where the same professional banker understands your challenges, can answer your questions and provides you with personalized attention.
Banking with a community bank also helps to support your local economy. According to the Independent Community Bankers of America, despite the huge number of megabank branches across the country, community banks still provide nearly 50 percent of small business loans. When you bank locally, your community bank channels your money right back into your neighborhood. Your money is donated and invested locally, growing your local economy and providing loans to your neighbors. Large banks send your money out to other states all across the country. Community banks know that their success is intrinsically tied to the health of the local economy.
Not only is your neighborhood bank putting money back into your community with all types of loans, but it may also pay your neighbor’s salary! Community banks employ over 765,000 Americans, and community bank CEOs and other senior staff members work in offices located in your community, not in far-off corporate headquarters. These same bankers serve on local boards, volunteer for local charity organizations, and coach local teams. Banking policies are made by the people who live in your community and know it best.
By banking locally, you are helping your neighbors and local businesses thrive!
Sources: the balance.com; bankbound.com; banks.com
SVP Retail Banking