The Benefits of Community Banks
Community Banks have strong roots in their local communities and understand the financial needs of people and businesses that reside within those areas, providing high-quality banking services tailored to each customer’s unique circumstances and goals.
They understand that maintaining savings and providing favorable loans will have a substantial positive effect on their local economy and increase opportunities for small businesses to flourish in that marketplace.
1. Friendlier Customer Service
Community banks prioritize building strong customer relationships in order to gain deep insights into their local markets and offer tailored services that address the needs of both individuals and businesses.
Community banks differ from national banks by being located, managed, and staffed within your immediate region – this enables them to respond more promptly when you have concerns or questions, without long wait times associated with calling a national customer service hotline.
Community bank tellers and advisers make the effort to become familiar with their clients on an intimate level, recalling details such as your business history or type of work you perform. Furthermore, they take time to understand your financial goals in order to provide tailored advice that helps you meet them.
2. Lower or No Monthly Fees
Smaller community banks typically charge lower or no monthly fees for checking and savings accounts than national banks, potentially saving you significant sums of money in fees and charges.
Local community bankers understand you personally, as well as caring about your financial success. Furthermore, they’re well acquainted with your town and economy – giving them an advantage when making lending decisions for consumers as well as businesses.
Community banks possess an important advantage: they can factor customer reputation and history more heavily than larger counterparts when making lending decisions, while tailoring products and services specifically to individual customer needs. For instance, during the pandemic many community banks waived or reduced overdraft fees because they value the relationships with their customers.
3. Free Checking and Savings Accounts
Community banks typically offer many of the same services offered by larger national banks at much reduced costs, including free or low-cost checking, high-yield savings accounts, home and small business loans, mobile banking tools and much more.
Community banks may prioritize customer service more effectively due to being locally-focused, especially if you are a regular or loyal customer and they know your preferences well.
Being local banks, community banks reinvest most of their deposits back into the community through business lending and other forms of lending, keeping money circulating within and increasing prosperity in that way. Furthermore, community banks may place greater weight on relationships or family history in making loan approval decisions than larger banks do.
4. No Overdraft Fees
Community banks typically offer free checking, with limited monthly fees and can work to help avoid overdraft charges – this is because their success relies on building strong relationships with their customers and having an in-depth knowledge of their financial circumstances and goals.
Community bank directors and employees take an avid interest in supporting residents and businesses within their region, donating both time and resources to youth sports leagues, churches, charity fundraising dinners, historical societies and chamber of commerce initiatives.
Financial institutions also play an essential role in contributing to local economies by investing deposits in mortgages, loans and other opportunities that enhance economic development and community resilience. This helps keep money circulating within communities rather than flowing off into distant corporate pockets – which is good news for all of us!
5. Special Loan Offers to Those Who Do Business in the Local Community
Community banks’ local presence allows them to offer loans based on an individualized analysis of each customer or business they deal with, unlike larger national banks that typically make lending decisions following rigid guidelines issued from corporate headquarters.
Banks play an invaluable role in keeping more money within a local economy and away from other areas or interests, which ensures more small businesses thrive and the overall community prospers. Plus, knowing your bank cares for both you and your community makes for a good feeling – they may donate funds, resources, employee time or provide other forms of support such as sponsoring local schools, places of worship, youth sports leagues, charity fundraising dinners or any other causes in need in your neighborhood.