You’ve seen the signs around your community to encourage people to shop locally. “Love Where You Live,” “Shop Local. Eat Local. Spend Local.” Even American Express has its Shop Local program, which promotes local businesses nationwide.
While many of us are happy to support our local shops and restaurants, the idea of ‘shopping’ at a local bank often doesn’t come into the equation. National banks offer the convenience of more branches across the country, much larger asset holdings, and, of course, brand recognition with snappy jingles and memorable commercials.
But does larger always mean better? Let’s take a look at why local banks are a better, smarter, and more personalized choice for your financial needs. And if you live in Marion, Montgomery, Selma, Maplesville, Jemison, or Clanton, Alabama, then Marion Community Bank is your FDIC-insured, trusted financial partner.
Some Facts About Local Banks
To get started, let’s look at some interesting facts from the Independent Community Bankers of America (ICBA):
- Represent $4.0 trillion in consumer, small business, and agricultural loans
- Have nearly 45,000 locations nationwide
- Employ nearly 700,000 people
- Make roughly 60% of U.S. small-business loans under $1 million and 80% of banking industry agriculture loans
- Are the only physical banking presence in one in three U.S. counties
Stop and think about those numbers, especially if you are a small business owner. If 60% of small business loans are through local and community banks, and they are often the only physical banking presence in an area, then there is power in banking locally. But wait, there is more to explore!
Personalized Service and Strong Relationships
When you call a national bank customer service, chances are you are speaking to someone who doesn’t even live in your area. The same thing applies to national bank branches; they may live in a county or two away, or even in a completely different state, and they are just reading off a script. It’s no wonder that a survey conducted by the Federal Reserve Small Business Credit Survey found that local and community banks outperformed national banks:
- 81% of community bank loan applicants were satisfied with their experience, compared to 68% at large banks, 62% at finance companies, and 48% at online lenders.
- Community banks’ net satisfaction score of 77% topped large banks by 15 points, finance companies by 25 points, and online lenders by 48 points.
If you are still with a national bank and are tired of long waits for decisions, impersonal customer service, or just want to know the person you are working with, now is the time to start working with Marion Community Bank.
Just as Secure as Large Banks
An important fact to keep in mind is that local and commercial banks are just as secure with your money as large or national banks. The Federal Deposit Insurance Corporation (FDIC) requires that all financial institutions must insure deposits up to $250,000. While some larger institutions offer programs that extend the insurance coverage, local banks like Marion Community Bank are just as safe for your deposits as leading national banks.
Flexibility and Tailored Financial Solutions
When you walk into a local bank branch like Marion Community Bank, chances are you know most of the people working there. Additionally, because they know the community they serve, guidelines for products like loans tend to consider a customer's full financial health and spending, rather than relying on an algorithm that only looks at credit scores and generalized risk assessments. This also applies to credit cards and other financial products, where interest rates can be more competitive than those of the ‘big banks’.
Quick Decision-Making and Responsiveness.
Partnering with a local or community bank means decisions are made quicker, and you know the person who is helping you with your financial goals. If you have questions about application status, or are exploring making improvements to your home with a personal loan, local banks can have a quicker turnaround time for decisions, helping reduce stress and letting you get started on your project faster.
Benefiting Your Community
You may see sponsor signs at events for your local banks that promote their services to attract new customers, and might dismiss the thought as simple marketing. But there are many economic benefits to partnering with your local bank.
Customers who bank with local or community banks help them make more local loans to individuals and businesses, which in turn stimulates job growth, creates more economic activity, and increases local tax revenue. This has a tremendous impact on the community. Take a few minutes to listen to this podcast from Marion Community Bank about the financial impact they have on the community.
If you need more data to show how important local and community banks are not only to the areas they serve, but to the greater nation’s economy, take a look at this 2023 survey from the American Bankers Association:
- Provided more than $2.3 trillion in loans for local communities
- Employ more than 450,000 people
- Hold more than $110 billion in small business loans
- Financed more than $150 billion for agricultural farmland and production
- Owns more than $700 billion in commercial real estate, like malls, office buildings, hospitals, and more
- Invested more than $180 billion in construction loans for builders and property investors
There is power in numbers, especially when more people choose to invest locally. Think about that next time you are considering a personal or small business loan.
Embracing Changing Technology to Future-Proof Small Business
Technology is moving, changing, and growing faster than we can imagine. Think about not too long ago, when you might still be writing checks for payments or only using physical debit or credit cards for transactions. Now, with the wave of your phone or one-touch on a screen, you can make virtually any purchase.
Now, consider how that might impact your local cheese monger or clothing store. How are they keeping up with emerging payment technology while ensuring their financial health is in the right hands? The answer is partnering with local and community banks.
Recently, PYMNTS TV, a trusted source for decision-makers in the commerce world, shared an article and interview about how small businesses are seeking local banks as trusted partners for their growth, and how technology can be a competitive advantage. If you are a local business owned in or around one of our Alabama areas of service, it’s worth taking the time to read and listen.
Make Marion Community Bank Your Financial Partner
Since 1902, Marion Community Bank has been serving the residents of Marion, Montgomery, Selma, Maplesville, Jemison, and Clanton, Alabama. They pride themselves on providing unmatched service and innovative solutions to make financial success achievable for everyone.
Come visit us today at one of our local branches and explore our suite of products, including: