Benefits of Community Banking

Whether you are searching for a place to save your money securely, or for a place to get a loan, you have multiple options. Typically, you can deposit your cash or borrow from the various large financial institutions with numerous branches across the country. Conversely, you can open any type of account at a relatively smaller community bank.

Although the larger national banks may seem to provide more bells and whistles compared to the community banks, it often pays abundantly when you go local with your money. Here are a few reasons why.

Community Banks invest in their community.

At local community banks, the deposits are primarily used in funding loans that directly invest in the local community, which includes small businesses and local individuals.  This subsequently generates more jobs, therefore establishing a stronger resident community. Contrastingly, major national banks invest their customer assets in large corporations, which bring no notable difference within your locality.

By choosing to hold your assets in a local community bank, you can be sure that your money is working towards developing your local economy. This is because the success of a community bank is dependent on the overall success of the local community. As such, the more successful a community bank is, the more the community bank succeeds and the more every resident benefits.

Community Banks support community initiatives & organizations.

Take time to look around your local charities, fundraisers, and community activities, and you will most probably spot a community bank.

Since community banks aim to develop the communities they serve, you will find many local banks dedicating their resources and time to support community organizations. This may include charitable organizations, local non-profits, schools, awareness groups, and even some basic needs organizations.

This support frequently comes in monetary donations form as well as volunteer hours which significantly benefit the local community. Such acts are often difficult to find with bigger banks.

Community Banks provide lending flexibility and local decisions.

Many small businesses, which are the most significant contributor to new jobs, usually rely on community banks locally for financing. These local community banks guarantee more business loans than major national banks. In fact, in the US alone, over 50% of small commercial loans are from community banks.

At community banks, lending decisions like loan approvals are often made by individuals who are well familiar with the unique needs of local businesses and families. These individuals most often live in these communities and who engage in face to face relationships with their customers.

Owing to the close relations, local banks can subsequently approve small commercial and other personal loans, which the larger national banks would otherwise reject.

Relationship banking: Local banks offer personal service

Personal service is perhaps the most significant advantage of community banking. Community banks are popular for their remarkable and personalized customer services/relationship banking. Ideally, it is not uncommon to hear local bank personnel and local customers interacting on a profoundly personal level, which goes beyond their standard banking needs.

Moreover, having a close relationship with your bank can come in handy in both good and severe times. Local bankers understand your business better and may help you make better decisions. 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 this COVID-19 pandemic.

Providence Bank is one example. “I have been a customer of a large national bank for over 25 years. When we entered this uncertain period confronting COVID-19, the big bank made it clear that small business customers were not their first priority.

As a small business owner, when I felt abandoned by the big bank, I immediately contacted Providence Bank where I had a small account. The staff, within hours, reached out to expedite the PPP process to ensure my business was able to open accounts, apply for funds and kept me updated throughout the process. I was incredibly impressed with everyone involved.

In times of crises, businesses have an opportunity to define themselves. I would encourage anyone looking for a bank that truly is proactive in supporting their customers, consider reaching out to Providence Bank and support your local community.” Scott Adams, President Ridge Capital Management.

This unique relationship banking allows community banks to serve clients better and produce personalized solutions that effectively suit their banking needs.Community banking is essential to the overall well-being of the local community. Visit a local community bank today and enjoy the most significant benefit of all personalized, relationship banking services for a financially prosperous life.  

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