By 
No matter if you are looking for a place to open a savings account or are looking for a home loan, a community bank is always a good option to check out. Unlike large, private banks that are run by shareholders, community banks are owned and operated by the customers that use them. There are over 50,000 community banks across the country that collectively hold over $3 trillion in assets.
Many people might think that larger institutions are a better choice, but this is not necessarily true. Here are some of the main benefits of working with a community bank.
Local Banks are Integrated into the Community
Local banks are integrated and responsive to the needs of communities. Large banks like to work with large, private institutions and businesses, whereas local banks are more likely to work with individuals and small businesses. Community banks are oriented around supporting communities and residents whereas large banks are usually concerned about just their bottom line.
Since local banks are more invested in the community, you are more likely to find resources than a large bank. For example, community banks loan an average of more than $3 billion a year to small businesses. Community banks are often small businesses themselves, so they understand the ins and outs of running one.
Personal and Business Services
Most local community banks offer a wide range of personal and business services, including
- Checking accounts
- Savings accounts
- Credit cards
- Mortgage loans
- Online/mobile banking
- Certificates of deposit
- Money market accounts
- Home equity lines
- Investment services
- Business accounts
- Business credit cards
- Commercial loans
- Cash management services
- Escrow accounts
- And much more
Community banks may be small but they offer much of the same products as large banks, with a handful of exceptions. Unless you require highly specialized banking services, then you will likely find what you are looking for at a local bank. For example, most local banks offer some kind of online banking, and over 60% of internet users say they use online banking either occasionally or frequently.
Better Customer Service
Anyone who has ever been to a large bank knows that they can be very unfriendly and cold. Large banks are not owned by the people that use them so they have much less of an incentive to work in their best interest. There are veritable horror stories about how megabanks treat their customers. In contrast, community banks are owned by customers so they are much more responsive to their needs and wants. Community banks are more likely to offer better teller staff, faster financial transactions, and faster processing of products like loans. Typically, most of the services of a community bank come from in-house, so they do not outsource things to third-party companies.
In other words, community banks are just more in tune with what their customers need and are more likely to work with them to make a unique plan. Community banks are more like family and have a vested interest in protecting your finances.
Focus on the Average Person
Large banks have a ton of assets and their most important clientele are large institutions and other organizations. That means that large banks are often more concerned with their big business clients rather than individual people. Community banks, in contrast, work with individuals more. The average customer at a community bank is a normal person with a normal income, not a huge multinational business. Community banks are more likely to view their customers as a person rather than just numbers on a balance sheet or a credit score. Many community banks take great steps to help customers if they are struggling financially.
Conclusions
Community banks are a different kind of banking paradigm. Large banks are notorious for not putting the needs of their customers first. Since the customers are the major stakeholders of a community bank, they are more likely to work towards your interest. So if you’re in the process of changing from a large financial institution, we would highly recommend checking out a community bank. Community banks give you more control and flexibility over your finances and provide a personalized touch that large banks cannot.
