How Local Banks Support Their Communities
In 1781 the first chartered bank of the United States was founded. The Bank of North America served as a robust declaration of independence and set the stage for independent community-minded banks to follow.
243 years later, according to the Bank of New York (BNY), community banks make up 97% of all banks in the United States. In total, community banks employ over 450,000 Americans and maintain more than 32,000 branches across the country, per the American Bankers Association. (ABA)
Community banks are an invaluable piece of any growing community, whether it is opening accounts for community members, providing access to loans or giving back through philanthropy, community banks are here for one thing: the community.
In the words of State Bank of Bement COO, EVP, ISO and Monticello Community Bank President Michelle Gross, “The bank does not exist without our community. If we don’t have people coming in to open accounts with us or to do transactions, we don’t have a bank.”
Communities and their banks enjoy a unique relationship and in this article, we will dive into how banks support their communities, and vice versa.
Supporting Customers
Whether someone is looking to open a checking account or planning for the future, community banks are here to help. Community banks are staffed with professionals who not only understand what the right steps for you are, but how you can maximize your success at each stop along the way.
Community banks since the beginning have understood that the key to positive banking experiences is meeting customers where they are and not where they should be. By prioritizing relationships over transactions, they are uniquely positioned to support their communities in ways that larger banks cannot.
“It is important that our communities see us as a resource and a place to come when they have questions, rather than a place they are stressed or nervous about visiting,” says Gross.
In many communities, banks have begun an exerted effort to offer their customers everything they need, right at home.
According to a survey conducted by the Conference of State Bank Supervisors (CSBS), 57% of banks listed the adoption of new technologies as either “very important” or “extremely important” and over 80% listed “expansion of mobile banking service” as an area where they will expand in the next five years.
If you are interested in the Mobile banking options the State Bank of Bement has to offer, click below:
Localized Lending=Localized Decisions
Community banks play a role in supporting the growth of communities through their lending practices. They understand the local market and its challenges, and because of this, they have the flexibility to approve loans that are beneficial to the community. This includes home loans, small business loans, and even loans for personal use. By investing in individuals and small businesses, community banks play a crucial role in stimulating economic growth, job creation, and local entrepreneurship.
According to BNY, 69% of Community Banks’ customer base is small to medium-sized businesses. Furthermore, the American Bankers Association (ABA) found that in 2022 community banks lent $28.5 billion to small businesses alone.
“It is vital that our local businesses know that they can come in with a plan and we can sit down and discuss the best way to meet their financial goals,” says Gross. "Even in the areas where we can't make the biggest difference, we are always looking to lend a helping hand."
In addition, community banks often create employment opportunities and contribute to local workforce development. By hiring locally, they provide jobs for residents, and many community banks offer opportunities for further financial education with seminars or courses.
Interested in Commercial loan opportunities through the State Bank of Bement? Click the link below:
State Bank of Bement Commercial Loan Center
Giving Back
As community members, employees at community banks have a vested interest in the success and continued support of their communities. Each month at the State Bank of Bement, employees volunteer in their communities as a token of not only our appreciation but out of the appreciation that each team member has for their community.
Many community banks have taken this to heart as they have grown and changed with their communities. Many banks now offer support for affordable housing, military veterans and disaster response along with a host of other causes.
“Banks have evolved. The support a bank could provide back in the day was mostly financial, but that has changed,” says Gross, “Our employee's minds towards philanthropy have changed over the years and because of that we are more giving as an organization.”
-Member FDIC