National Banks vs. Community banks

By Michael Cadet

There are two distinct types of banks you should be able to recognize. You have National/Regional banks and you have local community banks.

National/Regional banks offer much more convenience. They typically offer many locations throughout the country and in some cases internationally. This makes it easier to handle transactions when traveling outside your usual proximity. In most cases they offer longer business hours and 24hr customer service operations. National/Regional banks have greater resources and more lending capabilities than smaller local banks, which is extremely beneficial for a person or business with larger lending needs.

I’ve heard, unfortunately, customers complain that larger banks don’t offer as personable service as smaller banks do, and are less flexible with their policies and procedures. Negotiations can also be more difficult when it comes to loan conditions.

The main appeal of community banks is their personable service. This is primarily due to the fact that they’re not publicly traded, meaning these banks don’t have to report their numbers to Wall Street executives. Wall Street is only concerned with one thing – making a profit. The absence of Wall Street pressure makes it possible for smaller local banks to focus more on serving their community. They’re also generally more flexible with policies and procedures.

The only draw back to smaller community banks is the inconvenience of having limited locations. Also, smaller banks may not have the resources to accommodate larger lending needs.

Everyone has different needs depending on circumstance and personal preference, so it’s important to familiarize yourself with the characteristics of the bank that will be serving you.

As always, make the next move the best move!


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