When opening an account or applying for a loan, many people simply choose a bank with a familiar name that is convenient. While the prospect of numerous branch locations and ATMs may sound appealing, people often fail to realize what they are sacrificing when working with a large bank. A number of factors can make a difference in the service people can get at a community bank. These differences often make working with a local bank a better experience.
Community bankers see familiar faces.
To whom would you be more likely to give a loan: a complete stranger thousands of miles away, or the family down the street? Community bankers know that personal relationships help with lending decisions because they live and work in the same communities and get to know their clients personally. And, they understand the challenges they face. Simply put, the banking experience is better when it’s personal.
When businesses benefit, the bank benefits.
A healthy local economy helps every business within it, and that includes banks. Community banks thrive when they can provide the small business loans that are essential to keeping the local economy diverse and growing. As any small business owner knows, a loan can spell the difference between success and failure. While the Wells Fargo Small Business Index puts the typical amount of capital required to start a small business at $10,000, the Kauffman Firm Survey’s estimate is far higher, at about $80,000. If you’re starting a business, make your investment with a community bank that is invested in your success.
The effects of community bank practices are immediately apparent.
Banks that serve the community in which they are based have the unique ability to accurately gauge local economic conditions. This enables them to make more informed decisions and to respond faster to changing conditions. And because community banks now offer similar technologies like mobile check deposit, they have become as convenient as a large bank with multiple locations.
Community Banks want to grow the community.
Applying for a home loan can be intimidating and seem complicated. The entire process can feel impersonal and alienating unless you have a banker who is looking out for you personally. A bank without a committed stake in the community may be more likely to offer mortgages solely based on an applicant’s credit score and personal assets. A community bank will have a personal interest in finding creative ways to ensure everything is considered. What matters to community banks is making sure they provide the best support to get people in the homes they want. After all, what is a community but the people in it!
Bank local and experience the difference for yourself.