Community banks are a part of your local community

by | Aug 21, 2017 | Financial Services

When you have a choice between working through a big bank chain or through a locally owned community bank, you would need to weigh what services you wanted and the price you were willing to pay. Average fees at small banks are usually quite a bit lower than those of big banks. Also, it has been shown that smaller financial institutions can also offer better interest rates on savings as well as more attractive terms on credit cards and other loans. It’s for these reasons that you should investigate carefully before deciding which bank to open an account.

Some advantages of a community bank in Knoxville

Just as people are asked to buy locally to support the local economy, so to working with a small, local bank will assist your local economy and provide jobs in your area. Big banks have been shown to allocate little of their resources to small businesses, while smaller banks are far more likely to lend to these smaller enterprises. This is then also a good way to support your local economy.

In addition, most people have experienced the frustration of decisions that are delayed because they have to move up a long chain. This usually happens with larger institutions that are rigid in their dealings and are far more red-tape bound than smaller banks. Local banks can usually make quick decisions because the staff are local in the community and have personal relationships with their customers. They also have a good knowledge of local needs. As a result, a good website in Knoxville evaluates a loan inquiry regardless of the industry as it’s not tied in to regulations from out of state. Local banks are more flexible because they are more autonomous, so you’ll usually work directly with a decision-maker, which is always quicker and smoother.

Enhance your community spirit

A local bank usually is smaller and so doesn’t have the types of silos and specializations that are found in a big bank. When you need advice, you’ll probably get it immediately and in person. A local community bank is also tied to the success of its community. As a result, many are involved in their communities as they know that they are likely to prosper as the community grows and flourishes. This isn’t true for big banks as they’re not locally based in a community, rather they have a presence in a community, but are headquartered elsewhere.