Nowadays, it seems like there are banks on every corner. You’ll see Chase, Wells Fargo, and CitiBank locations strewn about your city, separated only by a few blocks. While these banks offer a lot of convenience to banking with their wide-reaching range of offices and bankers, is bigger really better? Before large banks took over the market, core banking systems were established in each community and served a smaller group of people with a community-minded approach. While more regional banks have disappeared over time, there is technology out there helping the little guy make a comeback. If you’re torn between what style of banking you should use, here are three reasons to consider banking locally.
1. They create local jobs.
A small bank falls into the category of small businesses which are America’s backbone. Localized banking creates 700,000 additional jobs in the United States, and without local banks, those jobs wouldn’t be there. In addition, a community-focused small business is more likely to focus on the development of small businesses in their respective communities. If you’re looking to establish something you’ve always dreamed of, you may be better off getting financial backing from a community bank because they support, understand and value the importance of small-business investing since they’re one themselves.
2. They support the local economy.
Small banks are a localized entity with one goal in mind: serving the community and helping its members. Instead of having locations all across the country and world, their goals are more centralized and one-sided, leaving you in better hands. When your local economy is struggling, but maybe the national numbers aren’t as dire, a local bank takes that into account. They know when local businesses and people need help and are connected to your community’s struggles and successes. All in all, they want to see the local economy thrive, so they’ll make financial decisions and investments to better achieve that goal.
3. They have big-bank benefits but not huge-fallout issues.
The bigger and better something gets, the harder it can fall. The same rings true for entities such as huge-banking conglomerates. Because of updated technology and banking services that are more affordable, you can still benefit from mobile banking, ATM’s and increased protection while using a local bank. Small banks have come a long way in their resources and ability to update which leaves the consumer with more benefits only big banks used to have. Large-scale banks may also be more targeted by hackers and cyber-scam situations since hackers know they’ll affect a lot more people when hitting a big bank. Because of the far-reaching scale of large entities, hacking can be more detrimental to vast banks.
Staying up to date and current with societal, technological, and economical trends is very important, and the institution you entrust to hold your life’s savings and money matters. However, just because something is small doesn’t mean it’s behind. Local banks are finding new ways to stay relevant and have unique benefits you won’t experience when banking big.