Community banks are experiencing a revival all across America, and especially in states like Missouri. But why are people losing faith in large national banks? What are the real differences between them and local community banks? And most importantly, if I’m going to choose to partner with a community bank, which one should I choose?
We wanted to offer our thoughts on the trend towards community banking, and shed some light on the reasons why so many people are opting to bank locally.
Why Are People Switching to Community Banks?
It’s simple: they just don’t have the same trust in national banks any more. People want to be able to trust the institutions that hold their money, and the distance and lack of transparency from many national banks has scared people away. Especially after the COVID-19 pandemic, when so many businesses experienced economic hardship, many felt compelled to explore their community banking options.
What Makes Community Banks Different?
There are a number of reasons why people choose to switch over to community banks. One of the most commonly cited reasons, especially over the last few years, has been the difference in attention individuals receive when banking with local institutions. This ability to provide more individualized care has provided the trust that was lacking from their relationship with previous banks.
With big banks, people often feel as if they’re one of many, and aren’t a priority. Issues like long waits for assistance and inflexible solutions can alienate clientele who prefer more one-on-one interaction. Community banks tend to be less crowded, and place more importance in the attention they give to each of their members.
Another reason people consider community banks is because they are more flexible. National banks must have rigid standards in order to operate efficiently, but community banks are more likely to talk through any problems their clients might have and figure out alternative solutions. The continuous relationship that a community bank builds with its clientele is more valuable than a few points of interest on an auto loan, and they’re well aware of that fact.
What are Community Banks Missing?
If community banks are so great, then why doesn’t everyone use one? Mostly, it comes down to convenience and technology. Many people’s lives extend far beyond the borders of their own town or county, and they need banking support even when they’re not at home. National banks usually have the reach and the resources to serve their clientele all across the country, making it a smarter decision for those on the go.
The disparity between national and community banks’ technological capabilities can also be a reason. National banks offer digital banking support and applications for mobile that give their users powerful tools on the go. Some regional and local banks just don’t have the resources to invest in those technologies, and especially lose out on younger generations because of it.
So What’s the Solution?
If only there were a community bank that honored its local roots while still providing the services and technology you’d expect from a major national bank.
Good news: there is!
Equity Bank has grown to serve residents in Missouri and three other states, and can go toe-to-toe with the big national brands when it comes to financial products and services. Digital and mobile support; business, home, and auto loans; and every personal banking product you need is right at your fingertips with Equity Bank.
And the best part is that we’re right around the corner. Equity Bank is now in over 60 locations, giving residents from dozens of communities the banking partner they’ve been wishing for. Find your nearest Equity Bank today and stop in — we’d love to help you plan for the future and assist you in tackling your big financial challenges.