benefits of community banks


When it comes to small business banking, consider these important benefits of banking with a community bank.

Larger banks have new rules to follow and face more scrutiny from regulators.

Large banks send your money out to branches in other states and across the country in the form of loans and investments. Community banks are woven into the fabric of every town, from big cities like New York to the smallest rural community. Today, there are more banking options than ever before, but local financial institutions are just asperhaps even more socrucial to the success and vibrancy of the communities they serve. Depending on where you live, a community bank might be your only option when it comes to financial institutions.

Community bankers take the time to know you professionally and personally. Since our first location opened its doors in 1929, Crews Banking Corporation has provided financial services to residents and small businesses throughout Central and Southwest Florida. On the other hand, megabanks continue to increase their overdraft fees: According to an article from Politico, JP Morgan Chase made over $2 billion in 2019 from overdraft fees alone. While a big bank usually prefers to work with large, established businesses and might have policies that favor individuals who can make hefty deposits, a community bank is going to focus its attention on supporting small businesses in its local area. In March 2016, 53 percent of smartphone users who had bank accounts used mobile banking at some point in the previous 12 months. Community banking might be the solution for you and your business. Community banks thus have lower turnover rates than the megabanks. When the housing bubble burst in 2008, the resulting financial crisis revealed all of the unsavory details of how these megabanks were run and regulated. According to Money-Rates.com, 43 percent of small banks checking accounts had no monthly maintenance fees compared to only 25 percent at large banks. Our dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries. In fact, community banks hold 36 percent of total small business loans, which accounts for double their share of the banking industry's total loans. Community banks offer several advantages for small businesses: You know better than anyone that your business is based on your relationships with your clients. Community banks also take a more holistic approach to issues like loans and business lines of credit. Whether a significant piece of equipment is damaged or you need to finance a new addition to your property, a community bank provides faster decisions to keep your business thriving. If youve been a proud local bank customer for years, share your experiences and reasons for banking locally with us. Your deposits help other businesses stay afloat financially and improve the market for local businesses rather than national chains. Another big difference between a big bank and a community bank is the type of clientele each one serves. Community banks offer many advantages for small businesses: Many community banks and credit unions have kept their doors open even as national banks moved into town. They might live and work in the same town that the community bank is based in, play golf or tennis with local business owners or send their kids to school with their customers children. The most popular services among smartphone users include checking an account balance and transferring money between accounts. Because of decision-making being locally based, business owners dont have to wait around as long for the loan they need. Any services a local bank offers typically come directly from the bank, rather than being outsourced to an outside company. In many communities, small businesses, especially those in the start-up phase, are quite dependent on community banks for their loans. And, if youd prefer to talk to someone, were always here to help. Tired of not receiving the customer service you deserve? We apologize for any inconvenience. Community banks serve a specific geographical area; consequently, they tend to support their local areas, and if you bank with them, you also support your community. We offer savings and checking accounts, wealth management services, mortgages and loans and services for small business. Big banks and their offices may have branches in communities throughout the country but they are commonly detached from the needs of those communities and how they can contribute. Our banksWauchula State Bank, Charlotte State Bank & Trust, Englewood Bank & Trust, and Crews Bank & Trustinclude 27 offices that serve 11 counties. In more than 600 counties across the country, there are no big bank branches. It shouldnt be too difficult to find a community or local bank since there are more than 50,000 of them across the U.S. Typically, local banks focus on assisting and building up their local community. Some commit special efforts to help small businesses in particular disadvantaged neighborhoods. Often, when you work with a community bank, you get the sense that you are part of a family. When you choose a local bank or credit union, youre making a smart financial decision for yourself or your business. Chase Manhattan followed suit two years later by acquiring J.P. Morgan. Community banks charge fewer fees and offer more free accounts. Are you interested in contacting a local, Florida banker to discuss your individual financial needs? Please be aware you are leaving Mid Penn Bank's web site. Many community banks offer scholarships for area high school students as well. Let us elaborate more on the five benefits of community banking for small businesses. If they do, the interest rate will most likely be higher to make up for the smaller request amount. SBA loans vary from $500 to $5.5 million. About 20 percent of counties in the U.S. only have a community bank. For example, community banks scored the highest in categories for teller or staff courtesy and helpfulness, with a 91, and speed of financial transaction, with an 88. A community bank might look at your family history or your character, as well as your spending habits when deciding on a loan. Community banks offer a full line of services and products, including online and mobile banking, and unique programs tailored to the needs of the local client base. Who better to understand what a small business needs to succeed? When compared to some larger banks, many community banks charge fewer fees to small businesses. Your money stays close to home and is rooted in the local economy. Now that you know why local banking is the smartest choice for your family, your business, and your community, the only question left is, how do I choose? Community banks and credit unions both make great financial partners. The material on this site was created for educational purposes. In 2017, 92 percent of institutions insured by the Federal Deposit Insurance Corporation (FDIC) were community banks. If youre in Central Pennsylvania and youre looking for a local bank for all your financial needs, contact Mid Penn Bank. For example, at John Marshall Bank, we dont charge for Bill Pay, Direct Connect, or EDI notices. They are able to get to know your needs and make suggestions based on your unique circumstances, customizing a plan to fit your business. Other services offered by mobile apps from a community bank can include mobile deposit, bill payment and person to person transfers. Tellers, advisers, and loan officers learn their clients' names and remember the nature of their businesses. The good news is that many local banks offer some form of online banking, allowing you to check your deposit amounts, transfer funds and pay bills. The content appearing on this site is third-party content. Credit unions and local banks arent going away. Youll be more likely to get a loan from a bank thats known you as a person for years than you would from a big bank with little or no connection to you or your community. One American Banker article discusses how this can really be a benefit of community banks: while technology is expensive to create, is it cost-effective to replicate or purchase. Therefore, community banks can focus their budgets and attention directly on the customer and relationship-building. mizzfit

Much of the time, their recovery is at the expense of the client. Since community banks serve a smaller pool of customers, they can really focus on building that business banking relationship, personally tending to the needs of each client. Many of them know their clients on a first-name basis and consider them neighbors. For your small business or personal financial needs, contact us today.

Both local banks and credit unions have your communitys best interests at heart. Your money stays in the community and makes it a better place to live.

Since then, megabank scandals have continued to appear in the news. At community banks, decisions are made locally, whereas, at a large bank, decisions move up a chain of command to professionals who might live across the country. Community banks and credit unions benefit individualsin seven important ways: If youre a small business looking for a bank, remember that local banks are small businesses just like you.

The leadership of community banks are often on local community boards and are dedicated to the success of their depositors, borrowers, and the community-at-large. They work hard every day for their communities because they depend on the health of their local economies to keep them running.

Whether you're opening a business checking account, applying for a loan or seeking financial advice, there are many benefits of working with a community bank. Community banks often make fee structures simple, easy to plan and work around your budget to maximize your cash flow. Megabanks arent as worried about losing one of their 5,800 retail branches so their decisions arent community-based. For most consumers, a local bank or credit union is the best banking choice. These days, there are more financial institutions to choose from than ever before. Most community banks offer the same level of digital services compared to big banks at a nominal fee (if any).

If you are a small business, the benefits of working with a community bank can far outweigh the flashy products and status of bigger competitors. The idea took off and one by one the larger financial institutions scooped up smaller banking names. Help us spread the word about the benefits of banking locally by sharing your positive experiences with community banks and credit unions. You can talk to your preferred lender to see which program best fits your needs. Your banker will know your corporate spending habits, your loan history, and other details needed to make informed decisions. Because these relationships are important to them, employees of community banks tend to have a higher quality of service and flexible decision-making. While the needs of every business are unique, there are some recognized benefits to banking with smaller institutions. This is especially difficult when, after a wait time of weeks or months, you end up being denied anyway. With John Marshall Bank were headquartered locally, which means we are familiar with the local economy. Whether you are looking for a loan or for a place to save your money, you have options. Another advantage of this personalized service is that decision making for loans happens locally. You live and breathe your small business. Many local banks offer the same features and services as the big banks. With roots deep in their communities, community banks on the other hand dedicate themselves to their clients instead of maximizing endless profit. Many do not have a monthly maintenance fee and keep overdraft fees to a minimum. We advise you not to email confidential information such as account number(s) or your social security number.

Many banks boast newer technology and mobile services than credit unions, but that, of course, varies by specific institution. With a dedicated relationship manager, you can significantly increase operational efficiency and improve your cash flow through personalized service from your business bankers. At Seacoast Bank, everything we do is based upon core beliefs summarized in the Four Promises we make to you. Since the establishment of megabanks (or large national banks) in the late 1990s, these larger financial institutions have gained recognition due to brand name awareness and full service options. National banks had the lowest levels of customer satisfaction, at 77 percent. A recent article in American Banker said it well, While consumers may no longer need bankers to assist with transactions, no amount of digitization will replace the friendly face offering knowledgeable advice. Community banks like John Marshall Bank have expert bankers that understand the unique challenges each business owner faces within their respective industry and market. You can borrow from or deposit your money at a large financial institution with branches available nationwide. Extended wait times will affect your cash flow and ultimately the success of your business. Big banks have more assets than local banks, but they dont have a lock on the largest number of customers. 5 Benefits of Community Banking for Small Businesses. Credit unions are financial cooperatives that exist to serve a specific community of people, and you must be a member. 2022 Wauchula State Bank. We may publish it to this post! In rural areas, the impact of community banks and credit unions is even greater as they provide82 percent of national agricultural loans. You wont have to wait for someone you've never met to review data in a file and render a decision or approve a request. Having your financial affairs in order before applying for any loan will speed up the process, no matter what type of loan youre applying for. Many megabanks are still paying off billions of dollars in fines for breaking regulations.