Almost everyone needs banking products and services to conduct personal transactions and business transactions. There are many types of banks to choose from, but many benefits are associated with using a trusted community bank.
Find out what benefits an exemplary community bank offers its customers and what to expect if you choose to team up with a reputable bank in your area. You may be surprised at the difference in service and flexibility they offer people living in the community they operate within.
What Is a Community Bank?
A community bank is a local financial lending or depository institution that serves residents in a small area. This type of bank focuses more on the customer relationships they generate by offering products and services.
If you’re looking for a more personalized experience from a bank that simultaneously offers quality options that help improve your life, then a community bank may be the ideal choice for personal and business banking services.
A community bank offers most of the same services as a larger corporate bank. Still, they are designed to serve locals with a focus on providing checking, savings, loans, and credit for the immediate area.
They generally have only a few locations and a combined maximum of consolidated assets that don’t exceed approximately $10 billion.
What to Expect From a Community Bank
A community bank is a place where you’ll get the high level of customer service you want without the strict attention to details such as your credit score or available assets.
It’s the perfect place to open your first checking or savings account or even a CD. You’ll likely get to know the people who work there, as they will also become familiar with you in turn.
A community bank is more likely to work with you to help you achieve good financial health and guide you toward creating a stable financial situation.
Additionally, A small unincorporated bank usually has a local owner or owner and isn’t traded publicly like Bank of America. They don’t need to consult with or answer to shareholders and can make flexible decisions regarding the customers, employees, and community.
The Benefits a Community Bank Offers Customers
Consider the many benefits a community can offer residents and businesses in the immediate area.
Fast Loan and Credit Decisions
A really attractive benefit of using a community bank to secure financing, loans, or lines of credit is that they provide a decision much quicker than a large corporate bank. That’s because they use their specific standards to determine to whom they want to extend financial services. There’s no waiting for a lending decision from corporate headquarters.
Collaborative Lending Options
If you want to obtain a loan from a community bank, they offer collaborative lending options to a more significant number of businesses as opposed to a large national bank. However, they don’t have access to the larger lending potential, but it’s a more reasonable option for local residents and small businesses.
Complete Range of Services
A community bank can offer its customers a full range of services and products to meet their needs. In most cases, they have the latest technology, such as online banking and online loan applications. However, they take more into consideration when lending rather than your income and credit score.
Low Fees
If you choose to do business with a community bank, you’ll notice that they charge fewer fees than a large bank. Their overdraft fees are usually minimal, and they won’t normally charge a monthly maintenance fee for your checking and savings accounts.
Better Ethical Practices
Community banks tend to adhere to better ethical standards than the larger corporate banks. The owners and bank management are proud to offer quality services to the community they live within.
They care about their community and the customers who use the bank to fulfill their financial transaction needs. You’ll hardly ever see the ethical dilemmas and infractions you’ll see with national banks with many locations.
Offers Customers Stability
Your community bank is likely to provide more stability than larger banks. There is less volatility and controversial issues that require the members to compensate for losses and missteps.
It’s a better solution for individuals and small business owners looking for straightforward services offered by people who live in the area.
Should You Choose a Community Bank?
If you’re considering using a community bank, you may wonder if their services suit your needs. If you’re interested in a full range of banking services for everyday needs, it may be the ideal choice for your regular banking activities.
There aren’t many drawbacks in terms of doing business with a community bank. They have all the same products to offer their customers but with a higher degree of personalized services. They make decisions based on many factors related to each customer rather than a few basic details such as debt, credit score, and annual income and assets.
Some factors that can help you decide if you want to do business with a community bank include the following.
- Proximity to your home, work, or business
- Products and services they offer
- Better personalized services
- Flexible lending options
- Fewer fees on transactions and accounts
While there are most benefits to using a community bank, there are a few drawbacks. For instance, if you’re looking to finance a large business transaction or get a large loan, you may be limited by a community bank.
Conclusion
If you’re currently interested in working with a community bank for your Idaho banking needs, find out more details about Farmer’s Bank. They offer full financial products and services for Idaho residents and businesses. You will feel right at home partnering with a bank who understands your wants and needs.
They are a respected and well-established bank in the region that focuses on building solid relationships with its clients while maintaining high integrity. To learn more, please reach out to one of our highly knowledgeable, friendly team members. They can provide answers to your questions or offer top solutions that meet your banking needs.
