by Steve Fleming on May 18, 2011
Community banks focus attention on the needs of local families, businesses and farmers. Conversely, many of the nation's megabanks are structured to place a priority on serving large corporations.
Unlike large national/international banks that take deposits in one geographic area and then lend in others, community banks channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.
Community bank officers, including senior management, are generally accessible to their customers on-site. Executive management and other decision makers at megabanks are often headquartered far away from where you live and/or operate your business.
Community bank officers live locally and are typically deeply involved in local community affairs, while large-bank senior management are likely to be detached physically and emotionally from the communities where their branches are located.
Many community banks are willing to consider the overall relationship with the bank in making pricing decisions. Megabanks, on the other hand, are often constrained by product "silos" and business unit profitability measures.
Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often ship loan packages to a loan approval center at a remote location.
Because community banks are themselves small businesses, they understand the needs of small-business owners. Their core concern is lending to small businesses and farms. Conversely, mega banks are trying to be "all things to all people" and it can result in a less satisfactory experience for small business owners.
Should I move my money from a Big Bank to a Community Bank? www.rcbank.com/VideoSeries/VideoSeries3.aspx#video
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