In the past several years, millions of individuals in the nation have transitioned from utilizing the big, faceless banking empire to small, community-based, local banking institutions. In a world of economic turmoil and consistent financial complications for the â€œlittle manâ€, more and more Americans are finding that opting for the local banks in their community is the way to go.
These institutions not only offer the standard services and benefits offered by those large banking empires, but they often offer more funding options for locals and those seeking to contribute to the growth of their community. While these are highly advantageous, there are many other benefits associated with local banking. In this guide, you will learn about these.
One of the main advantages to utilizing local banks are lower costs. It is common to find that these small financial institutions offer the same services and features as large banking institutions. Examples include online bill pay, interest earnings, debit card services, online banking, loans, and credit cards. The only exception is lower costs. Small, local banks impose fees and rates that are substantially less than their larger counterparts. Additionally, it is not at all uncommon to find that better terms are offered on credit cards and loans and that there are better rates in terms of interest on savings accounts. If you want to incur far fewer costs, local banking is the right choice for you.
The next advantage to using local banks is the fact that these institutions contribute more heavily to the growth of your community than larger banks. The small businesses where you reside turn to these banking facilities for the financing necessary for start-up and upkeep. Not only do the small business rates help fund the community, but their business aids in creating more local jobs. According to statistics, large banks dedicate only 18% of their commercial loans to small businesses. Small, local banks â€“ on the other hand â€“ devote more than 50% to small business lending.
The next advantage to utilizing local banking institutions is the fact that these facilities are dedicated to transforming the deposits that they receive into loans and many other types of investments that they deem to be â€œproductiveâ€. Larger banks are known to gamble away much of their earnings to trading deals that are considered â€“ by many â€“ to be highly speculative. Additionally, it is not uncommon for large banks to conduct investments that are designed to profit their institution but offer little to absolute no economic value for others.
Small local banks offer many advantages. Somerville National Bank offers lower costs, encourage economic growth, and only engage in productive investments; the top of which is you â€“ the customer. If you are in search of a community bank that is made by the people, puts the people first, and considers the people to be its primary source of business, our services are for you. Not only do we offer all of the advantages outlined here, but, we strive to know each of our customers and to help you grow!