Benefits of Community Banking

Community banks address the unique needs of local people. These are financial institutions established in the community, operated by local people, and serving the financial needs of the local people. These banks are known as ‘America’s Favorite’ banks and represent over 90 % of all banks in the nation. Here are the reasons why using a community bank is wise for you and the people around you.

You fuel growth and development in your community.

Half of all small business loans in the USA are sourced from local community banks. The local lenders similarly provide significant sums in farm loans and real estate loans. This lending goes towards wealth creation in the community, food safety, and the development of better housing. It goes towards job creation for the development of a better and more secure financial future of everyone in the community.

Better interests and lower fees

Banking locally helps you take advantage of higher interest rates when you deposit. The local banks need money to finance all those activities as mentioned above, and for that reason, they are always aggressively seeking deposits. Most of the local banks are willing to pay higher interest rates to make capital locally available in the community.

Relationship and not transactional banking

Community banks operate like your family doctor in many ways. They know so much about you, including your financial history, spending habits, and your true creditworthiness. If you are a business owner seeking financial support, having a close relationship with your bank can come in handy in both good and severe times, and often results in quicker funding. What’s more, local community banks can also come to your aid in times of distress. In particular, many local community banks took the initiative in helping out their local customers during the recent COVID-19 pandemic.

Heritage Bank is one example: “I cannot express how very grateful and thankful I am to (Heritage Bank) in getting this loan applied for, approved and funds deposited within ONE DAY. I am so thankful I reached out to you, and so appreciate the professional and helpful staff!! Be assured, I will be referring Heritage to all who will listen. Thank you again!” – Susan Hart of SLH Investments, LLC.

Another customer commented, “Thanks for all of your help… It was a pleasure to work with you. I have been extremely impressed with the superb customer service Heritage offers.” – Shenan Griffin, HamrNnailz, Inc.

Community involvement

Megabanks operate nationally or even internationally. They hardly need the community to survive. The story is different for community banks whose lifeblood is in working with the community members. These banks, therefore, play a bigger role in the local areas they operate in. Their community involvement is through CSR projects, financial education, and one on one customer service.

Customer-focused operations and decisions

Megabanks have an endless list of shareholders that they must answer to. In most cases, the decisions these lending institutions make are hardly in the interest of the customer. Community banks are locally owned, and all decisions are made by people that are in touch with the needs of the small business owner, families, and farmers.

Nearly all megabanks were formed by merging community banks or from the borrower-friendly capital availed by local community banks. That goes to show that there is no banking system without community banks. Without these banks, there is no growth in the communities either.