Why Choose a Community Bank?

April is Community Banking Month, so it’s a good time to highlight the benefits of community banks. We will look at some of the advantages of community banks and why you should consider making the switch to a community bank.

What’s the difference between a community bank and a big bank? Although there is no clear-cut definition of the two, we can describe what the average institution entails. Community banks are usually owned by members of the community with a smaller number of branches that often provide loans to local businesses and individuals. Big banks are large financial institutions that are publicly traded and have many locations, which often focus on lending to large corporations.

Relationships and Personalized Customer Service

A tremendous advantage of a community bank is the high level of personal service you receive. Creating and maintaining relationships with customers is essential to all community banks. Community bank customers are always welcomed into the branch and are usually greeted by name upon arriving at their local bank branch. Community banks genuinely enjoy getting to know their customers as it helps them better understand their customers’ needs and to point them in the right direction of the products and services they need.

A majority of community banks receive their business through referrals and repeat customers, so it is no surprise that they go the extra mile to develop personal relationships with their customers to ensure satisfaction and customer success.

Same Products and Services 

Many people assume that community banks do not offer the same products and services that big banks provide, but this is not the case. Community banks have the same essential services, such as debit and credit cards, online banking with bill pay, mobile check deposit, and convenient mobile apps to help manage accounts. Some products can be customized to fit your needs and are often at a lower rate/fees. For example, at Wallis Bank, we have both mobile and online platforms for personal and business users. Whether you’re depositing a friend’s check or wiring money funds for your business through a business treasury platform like Wallis 360, most community banks can service all your needs.

More Access to Decision Makers

Big banks are generally headquartered thousands of miles away, making decision-makers and upper management out of reach. At community banks, executives are much more hands-on and are typically available to their customers at any time of the day. Additionally, being local these decision-makers understand your market and have a clearer insight into the local conditions and concerns.

Community banks also consider qualitative information for a more holistic evaluation of the relationship during the loan approval process. Whereas big banks might solely look at your credit score and instantly deny the application. Knowing customers on a personal level can result in more flexibility in decision-making.

Local Connections and Resources

Creating a relationship with your experienced community banker can not only be beneficial due to the invaluable advice you receive but also an opportunity to make connections and access resources in your area. These connections help build stronger communities and benefit all parties involved.

Support the Local Community and Economy

Your community bankers live and work in your neighborhood, so supporting the local economy and community is important to them. You will often see your bank participating in charitable events, donating supplies to people in need, or putting in volunteer hours at local non-profits.

According to Q4 2020 data from the FDIC, community banks make up 97% of the banking institutions across the United States. Community banks tend to operate/serve in the under-served areas such as low-to-moderate neighborhoods and rural communities. Local banks not only employ many members of the community, but they’re also funding small businesses that create jobs in their region. The money put into community banks is then reinvested to make your local economy and community stronger rather than in large international corporations that you may not have ever heard of. When the community succeeds, the community bank does too.

Business Mindset and Champion for Small Businesses

Let’s not forget that community banks are also small businesses. They prosper when their customers prosper. This is a crucial component that results in the business mindset that community banks have. They are well-versed in knowing how small businesses operate and what they need to thrive. Community banks should be used as an asset and a resource for valuable knowledge and information while starting up a new business or even while growing a business.

As a result of consistently working with small businesses, community banks are advocates for underrepresented small businesses. Community banks rely on the success of small businesses to avoid closing their doors or being bought out by big banks, so seeing community bankers go the extra mile to encourage success from their customers is not uncommon. In 2020, community banks provided the most PPP loans to minority-owned (72.6%), women-owned (71.5%), and veteran-owned (63.4%) small businesses according to data collected by the Small Business Administration. Community banks were the indisputable lenders and lead the way with 57.5% of all PPP recipients during the economic recovery due to the pandemic.

Making the switch to a community bank can be beneficial in both the short and the long term, whether for your personal finances or your business finances. After making the switch, you will quickly see the community bank difference. You aren’t just an account number at community banks, you are a part of the family.

Contact us at Wallis Bank to learn more and make the switch today!