While many businesses start off by loaning their startup funds, this isn’t an option for many small businesses as it’s harder to meet the criteria. If you’re a high-income earner, you can relate to starting small and working hard to grow through a combination of luck, goodwill, and brave lenders. One of the reasons you should be banking with local community banks is to give more people the same kind of opportunities that got you where you are.
Here are four more reasons to bank with a local bank to get what you want out of your banking services.
1. Your Time and Money Matter
When you’re a high-income earner, the demands on your time are high. Any time that you’re spending trying to get to the bank during your workday is time that you’re not making money. Local community banks ensure that you don’t have to travel that far or wait for anything to come from a far-off corporate office.
Go into most locally-owned banks and you’ll find that they’re going to offer you the same services you’d expect from any other bank. You’ll get online bill paying services, debit and credit cards, and loan services that are at rates much lower than what you’d pay for at another bank.
Small financial institutions offer you more than personalized services and a friendly face. They also give you better interest rates on savings accounts. If you struggle to get terms that work for your financial situation, a local bank is going to work harder to help you succeed than one headquartered elsewhere.
2. You’re Part of the Local Economy
While you might be trading your assets on the global market and working with clients all around the planet, you’re going to spend your money locally. Your grocery store, the services you use, and your healthcare needs are all going to come from near where you live. That means that you should consider investing your assets in the same way that you invest your health and wellness.
While small banks only account for a quarter of all of the assets in the world, they do more than half of all of the small business lending that gets done. That means they know how to build economies, even with fewer assets. When you invest in a local bank, that dollar stretches further and travels far less.
If you need a loan or you realize how important your local economy is, then you’re going to want to work with a small bank. Small banks are going to build up the economy around you so that when it’s time for you to invest in a commercial property or venture, you have allies. Building a local economy can be a powerful thing.
3. They Know Local Challenges
If you’ve traveled around any rapidly developing area of the country, you see when things get out of hand. You end up with two cafes serving the same clientele right across from one another, a store selling just spices, and no hardware store for miles. If there’s no local decisionmaking, just big money investors from other communities coming in, then you lose sight of what your region needs.
Small community banks pay attention to what is needed in the community. They know that if there are more young families moving in and asking for home loans, there are going to be other things they need. They know that if there is a burgeoning industry or manufacturing that’s emerged, there will be other needs related to it.
The people who work at the community bank come from the community. They’re more than just retail workers that are hired by the average multinational bank. They work in the neighborhood because they care about the region and want to see it thrive.
They’re going to make important local decisions that other larger banks wouldn’t care as much about.
4. Rising Tides Lift All Boats
The way that small banks work is by nurturing high earners to earn even more with their investments. They attract high earners by offering better interest rates than big banks and then use the money to spend in the community. Their commitment to the community is one of the central reasons to work with them.
Wall street initiatives may benefit big banks, but they rarely trickle down to even the highest of earners. Meanwhile, incremental changes spearheaded by local community banks can have a major impact. The economic and social value of investing in these small banks is second to none.
As a high earner, you’re committed to your family, your community, and the businesses that you deal with. Small banks are likewise committed to building a healthy economic community. They fund local events and charities as well as participate in the promotion of good causes throughout the year.
While large banks try to engage with their communities, they can’t match the reach and investment that smaller banks have. The way that smaller banks lift up small businesses builds commitment and trust. Word of mouth and good reviews are vital to these businesses and you’ll find no shortage of either from these kinds of banks.
Local Community Banks Offer What You Need
While you might think local community banks are lacking in what you can get from bigger banks, it turns out that they have just as much to offer as big banks. Larger banks let a lot of great small business ideas fall through the cracks. Meanwhile, community banks can help to ensure that every community has a diverse range of exciting businesses to offer.
For a bank that specializes in offering loans to women and minority-owned businesses, check out our latest guide.