What’s the difference between local and national banks? At the end of the day, they both offer the same services. However, the difference comes from how they offer those services. Overall, local banks tend to be smaller than national banks. As a result, they usually have a more “personal” feel. That simple difference comes with a lot of results. Here are a few of the ways that this difference shows up in your banking experience.
First of all, community banks are usually locally owned. When you use a community bank, you’re working with a local family or individual. Your bank is owned by somebody who knows the community. They’ll know what the community needs and which services will benefit the community the most. While a national bank can have a branch in your community, the owners won’t understand the community needs as deeply as a community bank owner will.
Convenience vs. Customer Service
Local banks and national banks come with different pros and cons. On the plus side, national banks provide a lot of convenience. You can find a branch easily if you need one while traveling. However, national banks can’t provide the same personalized customer service that local banks can provide. Local banks provide a more tailored service experience. At a local bank, you’re more likely to find somebody who knows your name. For those who get what they need from online banking and ATMs, local banks often provide the best choice.
Some business owners prefer local banks when they need to get a loan. National banks often have stricter requirements when it comes to loans. Applicants need excellent credit and collateral to have any success. Local banks can have more relaxed requirements, which means a better chance of getting the funding that you need.
Supporting Your Community
Local banks also provide more community support than national banks. For one thing, they support the local economy by virtue of their existence. Local banks provide jobs. They support local businesses by providing loans and other services. Furthermore, local banks often support their communities in other ways, too. They add to the overall vibrancy of the community.
Find Your Best Banking Options
Wondering which banking options would work best for you and your business? Looking for the right community bank or credit union? Bundlefi can help. At Bundlefi, we connect small businesses with community financial institutions. Ready to get started? Contact Bundlefi today. Let’s put the power back into the community instead of the corporation.