Bank Locally: 5 Benefits of Community Banking

Community banks hold a special place in national economy and an important thing worth noticing is that they have reduced the count of under-banked customers, especially in rural and distant areas where big banking organizations might not be serving. Community banks have helped to keep local communities active, vibrant and progressive by offering financial services at low interest rates to small businessman and consumers. Why you should opt for community bank savings account rather than reaching a big bank that is prone to charge interest rates comparatively higher to the alternative, here are some reasons:

Bank Locally:

Everything that goes local is beneficial to common man. The local bank movement is just another example of the same. Community banks and credit unions are usually build, managed and operated by local leaders and supported by the local people of that particular community or area. This makes banking more of a personalized experienced. You get access to full resources locally without needing to reach overseas services every time you want money or face an issue with your account.

Small Hierarchy Level

Now that these banks are managed locally, it is obvious that leadership will be a lot more closer to their customers and members than bigger banks. This means that business decisions and processing will not only get secure but it will take place faster with enhanced flexibility. Your local banker will be more accountable and thus, helping you to resolve issues at more personal level. On the other hand, the branch managers of larger banks have little authority to make decisions.

Technology:

With the internet blooming, smaller community banks have now started to adopt convenient banking technology like the larger banks. Most of the community banks pool down their resources and also share their network of mortgage services, online banking platforms, ATMs etc. This will benefit the depositors and bank members offering them flexible banking process.

Lower Interest Rates:

Of course, smaller institutions are prone to charge less fee and quote lower interest rates. Most of the community banks are nonprofit organizations and aimed to benefit the members with their low costs and expenses. This makes loan rated and mortgages affordable as compared to larger banks. They have large compensation plans, bigger budgets, marketing, and branch operations extended to several steps which are funded by charging the customers.

Insurance:

Almost all the member depositing with community banks are insured by NCUIF- National Credit Union Share Insurance Fund or FDIC. Both these communities are vigilant and provide full proof protection and insurance. So, you need to worry a little and think more of the benefits and saving you are going to have by your side. These banks also provide quick loan approvals with little conditions being burdened on the customers.

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