Did you know the bank you choose to work with has a profound impact on your business and its ability to scale up? The simple fact is that some banks have better products and care more about their customers than others. Chances are that a community bank will better serve your business than it would be by a national financial institution. Read on to learn five reasons a community bank may help your local business grow.
1. Product Availability
You may think community banks have a smaller product lineup than national banks. The truth is that today’s community banks provide access to most of the same financial products you would expect access to at a national bank. They do so in one of two ways:
- Internally: In some cases, community banks offer services like credit cards, merchant services, and other business services in-house.
- Externally: In others, these banks may outsource some financial products to make sure they offer their customers everything they might need.
No matter which direction the bank takes, community banks typically offer more competitive rates than their national counterparts. So, you usually get access to the same services at a lower cost.
2. Avoid Mergers & Buyouts
National banks are often amidst mergers and acquisitions. That means your accounts with these banks (and the terms associated with them) may change from time to time. That’s not always the case with local community banks. These banks are more interested in growing with you rather than growing out of you.
3. Higher Flexibility
National financial institutions have rigid rules every member of their team must follow. That means there’s little wiggle room regarding fees, underwriting processes, and other aspects that can impact your business.
Community banks are known for higher levels of flexibility, meaning that you typically end up with financial services customized to your business.
4. Highly Accessible
What happens if something you don’t understand happens on your financial accounts in the middle of the night or on the weekend? What if you get hacked? Does your national banker know your business inside and out and understand the impact the issue might have? Can you reach them when you need them? If you work with a community bank, you’ll likely have a direct point of contact who knows you by name and understands your business, and is always eager to help.
5. Community Members
Community banks aren’t just financial institutions. These banks are typically active members of their communities. They help support community-oriented activities and groups, and they help to ensure that the underserved populations of your community have access to the services they need. They’re community members, just like you.
The simple fact is that community bankers understand your community and your business in a way that no national bank can. The members of the bank live, work, and serve in your community, and since these banks aren’t beholden to a rigid corporate structure, they can mold their products and services to meet your needs. Give your friends at Western Bank a call to learn more.