The Ways in Which Community Banking Gives Back to the Community

Author: BankFeeInsider.com     Wednesday, August 20, 2014 12:00 AM

Since the recent economic downturn in both the United States and the rest of the world, an increased emphasis has been placed on the importance of community banking over traditional large banks. For years, many people assumed that large banks were the only option when it came to keeping your money safe and secure. The popularity of credit unions and community banking in general is most certainly on the rise, thanks in no small part to the many elements that separate them from those larger corporations. One of the most important differences between large banks and community banks is also one of the most important - the many ways in which these community banks give back to the areas that they're located in.

 

The Best Rates

 

One way that community banks give back to the community has to do with the types of rates that they've historically been able to offer. Large banks operate on a for-profit capacity, which means that they're trying to make as much money as possible in order to be successful. Community banks are generally not-for-profit, which means that they're able to offer fees and loan rates that are lower than their larger counterparts. At the same time, the interest rates that are offered for savings accounts and other types of investments are generally much higher because they aren't concerned with stockholders or a bottom line - instead, they're concerned with the community at large.

 

Superior Customer Service

 

Banking with a large national chain bank can be something of a nightmare on the best of days. Because large banks are servicing hundreds of thousands and even millions of members at any one time, the act of doing business with them is something of an impersonal and cold experience. Because credit unions and other types of community banks are much smaller, they have the ability to offer a much better and much more personable experience. When you're talking about your hard-earned money, it's important to understand that the person sitting on the other side of the teller desk really cares about your success. Doing so improves the community as a whole and helps people live their financial dreams.

 

Community Outreach

 

Another way that community banks give back to the areas in which they're located is through extensive community outreach programs. Many community banks start scholarships with local school districts, sponsor various types of extracurricular programs and more. Instead of being concerned with the largest possible profit, these smaller organizations are more concerned with making the areas in which they're located a better place for everyone involved.

Source: BFI