Each year, hundreds of thousands of new businesses are launched in the United States. With so many banks and advisors vying for their financial business, it can be hard for a business owner to choose the best banking partner for them. To succeed long term, business owners seek out a financial partner that offers the services and resources they need and is as invested in their success as they are. They need a business-friendly community bank, like us!
Community banks have always been an integral part of nearly every town in the country. They evolved as part of the U.S. “dual” banking system – one system of federally chartered national banks and another system of smaller, local banks chartered and overseen by the states in which they operate. Each component offers benefits to the overall strength of the U.S. banking system.
Community banks are typically closer to the people they serve, with branches in towns and neighborhoods where their own employees live. They also are governed by leaders who are intimately familiar with the economies and needs of local communities. Decisions can be made more quickly than those of banks that need to run decisions through out-of-state executives.
Why does this matter? Though many people outside of the banking profession may not know it, this fundamental difference in the purpose behind the community bank ensures that our top priority is meeting the needs of our neighbors – business owners, individuals and families alike – for banking and lending services.
Unlike larger banks that may take deposits in one state and lend in others, community banks channel their loans to the neighborhoods where their depositors live and work, which helps local businesses and communities thrive.
As high-tech, high-touch local financial institutions, community banks work with their customers to ensure they have access to innovative products and services while partnering with and investing in financial technology providers.
Lending Leadership to Area Business
According to the Federal Reserve’s Business Credit Survey: Report on Employer Firms, community banks are the business lender of choice: 79 percent of independent businesses that used community banks report they were satisfied with their overall experience, compared with 67 percent for large banks and just 49 percent for online lenders.
Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often convene loan-approval committees located in another state, far away from their customers.
Community Engagement and Accessibility
Community bank officers are typically deeply involved in their local communities, while megabank officers are often detached from the communities where their branches are located.