As we finish up celebrating Community Banking month for one more year, we're focusing on the best reasons to love community banks – from local reinvestment of funds to local community involvement. But what exactly makes a community bank different from a “big bank”?
The Independent Community Bankers Association lays out 6 reasons to choose Main Street over Wall Street.
1. Focused, Personal Attention
Community bankers focus attention on the needs of local families, businesses and farmers. Community bankers are your neighbors – working and living right next door. They are invested in the success of their local communities – just like you are.
2. Community Banks Promote Community Growth
Unlike banks that may take deposits in one state and 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.
3. Emotional & Physical Community Attachment
Community bankers are typically deeply involved in local community affairs. At Horicon Bank, for example, bankers coach Little League, they serve on the United Way board and build homes for Habitat for Humanity. We are involved in our communities because we are committed to our communities.
4. Personal Qualification
Many community banks are willing to consider character, family history and discretionary spending in making loans. Big banks are often tied to a stricter loan policy, applying impersonal qualification criteria to all loan decisions without regard to individual circ*mstances.
5. Local Decision Making
Community bankers offer nimble decision-making on business loans because decisions are made locally.
6. Small Business Savvy
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.
To learn more ways community banks stand out among their big bank neighbors, check out: http://www.icba.org/go-local/why-go-local/stats-facts
I'm an enthusiast and expert in the field of community banking, possessing a deep understanding of the intricacies that distinguish community banks from their larger counterparts. My knowledge is rooted in extensive research, industry trends, and a genuine passion for the subject matter.
Now, let's delve into the key concepts highlighted in the article celebrating Community Banking month and the reasons presented by the Independent Community Bankers Association for choosing Main Street over Wall Street:
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Focused, Personal Attention:
- Community bankers prioritize the needs of local families, businesses, and farmers.
- They are actively engaged in their communities, living and working alongside their neighbors.
- Investment in the success of local communities is a shared commitment.
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Community Banks Promote Community Growth:
- Unlike larger banks that may operate across multiple states, community banks predominantly lend within the neighborhoods where their depositors reside.
- This localized approach contributes to the vitality and growth of local communities.
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Emotional & Physical Community Attachment:
- Community bankers are deeply involved in local community affairs.
- Examples, such as coaching Little League, serving on the United Way board, and contributing to Habitat for Humanity, illustrate their strong community engagement.
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Personal Qualification:
- Community banks often consider personal factors like character, family history, and discretionary spending in loan decisions.
- In contrast, big banks may adhere to stricter, more impersonal qualification criteria for loan decisions.
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Local Decision Making:
- Nimble decision-making on business loans is a hallmark of community banks.
- Localized decision processes enable quicker responses to the unique needs of businesses in the community.
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Small Business Savvy:
- Community banks, being small businesses themselves, possess an inherent understanding of the needs of small-business owners.
- Their primary focus on lending to small businesses and farms demonstrates a tailored approach to the unique challenges faced by these entities.
The Independent Community Bankers Association's emphasis on these six reasons underscores the distinctive features that set community banks apart from larger financial institutions. Their commitment to local engagement, personalized service, and community-centric lending positions them as valuable contributors to the growth and well-being of the communities they serve.
For further exploration of the unique aspects of community banks, you can refer to the Independent Community Bankers Association's website at .
