If you feel like you always see advertisements for big banks, you might assume that they’re the most popular options for business banking. But it turns out that many small businesses prefer to work with smaller banks in their communities. In fact, one survey found that community banks provide 75% of small business loans in recent years. Take a look at some reasons so many small businesses prefer community banking.
In-Person Banking Is Important to Small Business Owners
As big banks that operate nationally—or even internationally—push their mobile banking services more than ever, local banks tend to lean on their in-person banking services. That’s good news for them because it turns out most small business owners prefer to go to the bank in person compared to using a phone or computer for business banking. After all, they can quickly get their questions answered by caring, experienced bankers when they go into the branch in person. This is typically faster and easier than having to explain any small business banking concerns to an automated system or waiting on hold to speak to a representative.
Small Banks Can Relate to Small Businesses
Hometown banks are small businesses, meaning small business owners in the community have a lot in common with them. This makes community banks uniquely positioned to relate to and assist local business owners. Major banks that count as corporations just don’t have the same advantage here.
Community Banking Offers Personalized Service
Hometown banks are known for being anything but impersonal, as representatives pride themselves on offering personalized attention to every customer. Small business owners tend to appreciate this, especially when they go to the same bank for years and have developed relationships with the staff. This makes business banking a more pleasant experience and saves time, as you won’t have to explain who you are and what your business does every time you go in to make deposits or apply for loans.
Local Banking Decisions Take the Community Into Consideration
When you use a big bank with thousands of locations, the rules and regulations tend to be the same everywhere, which doesn’t always make sense. Each community has different business banking needs when it comes to services, fees, etc. With community banking, you know the policies at your bank were set up with your neighborhood in mind, with the belief that customers are individuals rather than numbers. Small business owners appreciate that this mentality often comes into play when deciding who qualifies for a business loan or which fees are waived.
So if you’re a small business owner trying to choose a financial institution for your business banking needs, look for a local bank. This way, you’ll get to enjoy all the advantages of community banking listed here.