3 Reasons Why Local Banking Is Just Better

You know what it’s like to find that perfect, local cafe where the waiter knows your name, you have your favorite seat to sit at and your order never changes. You feel appreciated, accepted and able to truly be yourself because the place feels like home. Humans go out of their way to establish meaningful relationships and community-centered lifestyles, so why shouldn’t banking be the same? It’s not special when there are 25 Chase banks in your city that hundreds of people go to every day. You’re just a number in a long line of customers. There’s a misconception that smaller core banking systems are less advanced, not as safe and worse for consumers. However, here are three reasons you should look into a localized-banking approach and the benefits only local branches provide.

1. Local banks are involved in the community.

Everyone loves being able to help out and serve the community they call home. Local banks feel the same way and have the resources to do so. Whether it’s buying the jersey’s for your hometown’s local baseball team or donating to a non-profit that goes above and beyond in your neighborhood, smaller banks understand and want to be involved in community initiatives. The people who own, work and bank locally are all part of the same community and take pride in seeing it grow and be strengthened. You can’t find the same community-investment mindset in larger banks with locations ranging from China to Boise, Idaho.

2. Local banks value their customers.

It’s very likely the same person who approved your mortgage rate will join you at church every Sunday. Local banking is like a family affair with everyone on the same team. There’s a personal touch at local banks that overflows out of its tellers, lenders and owners. Community banks have a level of customer support and care that large banks can’t beat. Now, the bank still has to do its job to make sure it’s giving out loans and credit to people who qualify and are best suited to take on the associated payments, but the customer care you’ll find in a local bank just reiterates the fact that they are doing their best to serve and see local people thrive.

3. Local banks have more qualitative underwriting capabilities.

When you’re looking to start a business or have an idea you believe in wholeheartedly, it’s hard to take no as an answer, especially if the only thing that’s keeping you from launching your dream is a lack of financial resources. Big banks take a one-sided approach to financial approval and rely solely on FICO scores to make decisions. However, a local bank is more likely to look at everything you bring to the table. If your credit score may be lower, but your credit history and payment making has been solid, a local bank will take those details into account when deciding whether or not to approve.

If the cookie-cutter approach McDonald’s takes doesn’t compare to your favorite local cafe’s environment, why should you settle for a unified approach to banking? Looking at smaller, more localized banks may be just what you need to see your money, visions and investments reach levels you never thought possible.