Personalized Service, More Favorable Lending Terms, and Other Local Banking Advantages
When choosing where to open your banking account, it can be easy to get caught up in name familiarity and brand recognition. However, like most name-brand products and services, big banks are usually the least cost-effective option.
The culprit? National banks have a lot of overhead. Bank of America, for example, has 3,700 brick-and- mortar locations and approximately 15,000 ATMs. Maintaining those assets comes at a significant cost, and you can bet your bottom dollar some of that expense is passed on to consumers.
National banks also have some of the highest-paid executives in the world. According to Reuters, Brian Moynihan, CEO of Bank of America, made $35 million in 2024, a $6 million increase from his previous year’s salary.
Local banks don’t have bloated overhead, nor do they maintain thousands of locations or financial assets. This allows them to focus on what really matters in banking: people.
If you're trying to decide between a big bank and a more personal option, this guide will help you understand why choosing a community bank may be the smarter choice for your household.
Big Bank vs. Local Bank: What’s the Difference?
The main difference between big banks and local banks comes down to size, structure, and service. Big banks often operate across the country or even globally. They have thousands of employees and massive operations. Their services are usually the same, no matter where you are.
In contrast, community or local banks serve specific regions or cities. They are smaller, locally owned, and more focused on helping the people who live and work nearby. Their decisions are made at the local level, and those decisions are usually informed by their first-hand experiences with the community.
Here are a few key differences to consider:
Customer Service
At a big bank, you might have to deal with a phone tree or automated system just to ask a simple question. With a local bank, you can often talk directly to someone who knows your name and is ready to help. Easy access to information and assistance makes for a far less frustrating experience.
Decision Making
Big banks often have multiple levels of checks and balances in place, especially when it comes to lending. The strict guidelines and multi-level approval process means loan applications move at a snail’s pace. Community banks, on the other hand, typically have a smaller staff with fewer decision-makers. This helps streamline the approvals process, which is especially beneficial for time-sensitive loans intended to fund essential equipment repairs or replacement.
Products and Services
Although both types of banks offer banking accounts, loans, and credit cards, local banks provide more personalized support and are less likely to charge nickel-and-dime fees to do business with them. Remember, local banks don’t manage mountains of overhead, so they are more inclined to offer competitive loan rates and free checking accounts.
Community Impact
When you put your money in a community bank, it often stays in the community. Local banks are more likely to reinvest in local businesses, schools, and families.
How Your Family Benefits When You Go With a Local Bank
Choosing a local bank isn’t just about where you keep your money; it’s about who you can trust with your financial future. Here are some of the most important benefits you and your family will enjoy when you open a banking account with a community bank.
Higher-Level Customer Service
At a community bank, you're not just another account number. Local bankers take the time to get to know you, understand your needs, and work with you to help you reach your financial goals. Whether you’re opening your first banking account, applying for a car loan, or saving for your child’s education, you can count on personalized advice and support.
If you ever have a problem or question, you won’t be passed around a call center. You can speak with a living, breathing human being at your local branch who’s familiar with your situation and ready to help.
Supporting Your Community Through Local Banking
When you choose a local bank, you're also investing in your community. That’s because community banks tend to lend money to local businesses, donate to the area’s schools and charities, and support events that matter to your neighbors.
Your deposits help fund local projects and help other families and businesses thrive. It’s a great way to support your community simply by going with a convenient, local option.
Faster, More Streamlined Service
Need a loan quickly? Want to set up a new banking account without jumping through a bunch of hoops? Local banks are often much quicker when it comes to approvals, customer support, and day-to-day transactions.
Local banks operate with a smaller staff compared to big banks, fostering faster decision making. This can be especially helpful when you’re applying for a mortgage, small business loan, or personal loan.
You’re Seen as a Person, Not a Number
One of the biggest frustrations with national banks is that they treat customers as data points and risk factors. If your credit score is slightly low or you don’t fit the standard mold, a big bank may say “no” without understanding the nuances of the situation.
A community bank is more likely to look at your overall story, including your income, work history, and character. They’re invested in helping people in their community succeed and are more willing to work with you if you’ve hit a rough patch or are trying to rebuild.
Reduced Fees and More Favorable Lending Terms
Many local banks offer lower fees, better interest rates, and more flexible terms than big banks. That means you could save money simply by switching your banking account.
You may also find that loans, lines of credit, and other services come with fewer hidden costs or penalties. Community banks tend to focus on long-term relationships rather than maximizing fees or pushing unnecessary products.
Discover a Friendlier, Customer-Focused Approach to Finances With a Local Bank
If you’re looking for a better banking experience that emphasizes personal service, meaningful relationships, and a community-first mindset, then it’s time to consider a local bank.
Opening a banking account with Verimore Bank is a smart way to take control of your finances while also making a difference in your hometown. You’ll enjoy better service, faster responses, and a bank that truly cares about your financial success.
Contact us to learn more about local banking or visit us in person at a
Verimore Bank branch near you.