What sets community banks apart
Local Focus: Unlike larger banks that may take deposits in one state and lend in others, community banks channel their loans to the neighborhoods where their depositors live and work, which helps local businesses and communities thrive.
Relationship Banking: Community bank officers know their customers and may consider family history and discretionary spending in making loans. Megabank loan officers apply impersonal qualification criteria, such as credit scoring, without regard to individual circ*mstances.
Innovation: As high-tech, high-touch local financial institutions, community banks work with their customers to ensure they have access to innovative products and services while partnering with and investing in financial technology providers. A prime example of community bank innovation is showcased through ICBA’s ThinkTECH Accelerator.
Lending Leadership to Small Business: According to the Federal Reserve’s Small Business Credit Survey: Report on Employer Firms, community banks are the small business lender of choice.
- 81% of community bank loan applicants were satisfied with their experience, compared with 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.
Timely Decision-Making: Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often convene loan-approval committees located in another state, far away from their customers.
Community Engagement and Accessibility: Community bank officers are typically deeply involved in their local communities, while megabank officers are often detached from the communities where their branches are located.
As local small businesses themselves, community banks only thrive when their customers and communities flourish. They answer to Main Street. Megabanks are driven by shareholder value and answer to Wall Street.
Often referred to as America’s Favorite Lenders,
community banks:
- Provide roughly 60% of all small business loans
- Make more than 80% of agricultural loans
- Have nearly 50,000 locations nationwide
- Employ nearly 700,000 people
For more resources to help tell the community banking story: Visit our marketing toolkit
A Guide to Minority Banks
Learn more about how minority banks still play a crucial role to many minority and low-to-moderate-income communities and small businesses, often serving as the only safe option for them to do business. Without minority banks, many minorities and low- to-moderate-income customers would be susceptible to predatory practices, such as payday loans and car title loans that only keep them in debt.
