02/03/2016: Join Your Community Bank
Join Your Community Bank
If you think banks are all alike or that big banks have the most to offer, you might want to think again. Local community banks can make a big difference for you, your small business and your neighborhood. Here are facts to bust some of the most common banking myths. Myth #1: All banks only care about the bottom line Big banks seek to maximize the return on investment for stockholders. As a result, they typically invest deposits with distant ventures that look most promising in terms of profit. Community banks, on the other hand, are committed to the neighborhoods they serve, investing the bulk of their assets close to home. This helps local businesses and residents while boosting local economies. That’s particularly true in farming and dairy regions: A Harvard University analysis of banking data in 2015 showed that community banks account for 77 percent of agricultural loans. Myth #2: It’s best to try a big, famous bank for financing Community banks like Chino Commercial bank are locally managed, unlike big banks whose financing decisions are generally made at distant corporate offices. When you apply for personal or small business financing at your community bank, the people handling your application are more likely to already know you than if you were to apply at a big bank with a massive clientele. They’ll be more likely to look at your individual situation when considering whether your application rather than relying on inflexible formulas. In fact, when it comes to agricultural and small business financing, community and regional banks approve credit applications at almost twice the rate that big national banks do, according to the Federal Reserve. Myth #3: Big banks have the best features No need to go to a big bank to enjoy the latest banking features. Local banks offer a variety of savings and checking options along with high tech features such as mobile banking with remote deposit capture. Small businesses can take advantage of online cash management tools that make it possible to complete internal transfers, stop-payments, wire transfers and ACH requests as well as view reports, receive alerts and pay taxes/bills remotely, 24/7. This all comes with the same federally insured security that the big banks provide, often with lower fees and more favorable interest rates. Myth #4: All banks are cold and impersonal Community banks know one size doesn’t fit all. When you bank locally you’ll find investment and financing options with terms and conditions that fit your unique needs. You can also expect a more personal touch at community banks. While many national banks are cutting back on customer service by charging fees for live customer service, staff-assisted transfers or even face-to-face teller transactions, local banks typically offer friendly service as the standard along with a sincere appreciation for your business. Community banks give you the security and features you’d expect from a mega bank along with human warmth, flexibility, support for local businesses and a boost to your local economy. With all those perks, the community banking choice is clearly an easy one. Roberta Pescow, NerdWallet © Copyright 2015 NerdWallet, Inc. All Rights Reserved
