It is hard not to notice the changing landscape of banks in southeastern Indiana. New signs are being swapped out with new bank names and logos following mergers with larger financial institutions.
Regional banks, national banks, and community banks all have pros and cons.
Community banks are locally owned and operated.
They are generally smaller in total asset size, and reflect the loan demand in their communities. Most are small by choice, focusing on the communities that matter the most to them and their customers. Community bank deposits are obtained locally, and the majority of their loans are made to local individuals and small businesses.
Community banks fund 60 percent of small business and more than 80 percent of agriculture loans—and contribute tax dollars that help maintain local municipalities and keep local neighborhoods viable and vibrant.
When choosing who to trust with your financial life, community banks offer the following.
1. Community banks respect and honor their community ties.
Community banks and local communities have symbiotic relationships—one cannot thrive without the other.
2. Community banks are relationship bankers.
They know their customers and understand their financial needs. Front-line staffers often have greater authority to serve customers than their counterparts at larger banks. Lenders consider more than just credit scores during the loan approval process. Additionally, they are great sources for advice and information as they consider individuals’ overall financial well-being.
3. Community banks understand and embrace local businesses.
A study from the 12 Federal Reserve banks found that small businesses that apply for loans with community banks are the most successful and most satisfied. Community banks are local businesses themselves, offering jobs to local residents and funneling money back into the local economy.
4. Community banks offer convenient and modern services.
Regional and national banks offer more convenience when it comes to locations in multiple cities and states. This can be handy for those who travel frequently or have businesses with multiple locations over a large geographical area. Non-traditional banking hours and online chat options are more common at larger financial institutions.
Larger banks may also be able to assist a large business who needs a significantly more sizable loan that a community bank can’t risk due to their by-laws.
Your financial life and money matters are serious business.
Determining what bank can best serve your current needs is worth considering. Get to know all your options. Visit bank websites to learn about their history, values, and services. Stop by the banks in your area and ask questions. Seek a bank that best aligns with your values and needs.
Start the Friendship Today
Switching banks may seem like a dreaded task, but The Friendship State Bank offers personalized, one-on-one service and tools to make the transition easier. The time and effort now will limit long-term frustration and reap life-long benefits. Find a location near you or contact us today.
What it Means to Rely on Friendship with CEO Chris Meyer
Easy Switch Kit
Ready for better banking? Switching is easy with our easy switch kit.