Startup Pulse

Benefits of Using a Community Bank

Many towns have community banks that provide financial services to residents and businesses. Today, there are more financial institutions available than ever.

Megabanks or large national banks in the late 1990s have gained recognition because of their brand names and offering full services. As larger banks centralize their services nationally, smaller institutions must continue to support their local communities.

The robust array of financial services offered by community banks is not only a benefit for the community but also involvement and community care. This article can help you understand the many benefits you can enjoy when banking with community banks such as Farmers Bank, Idaho. Whether you are a small-business owner, an advisor to one, or a person looking for financial advice, you should find something of value in the information provided.

Collaborative Lending

While small banks and credit cooperatives may not be as powerful as large banks, they can work well together. The collaborative credit lending process allows community banks to pool their resources to lend to more small businesses. This network of community bank members allows them to reach more customers and provides the resources you need to help your business thrive. 

Higher Ethical Standards

Community banks have high ethical standards because they are part of the community. Their actions and behaviors directly impact the community. Therefore, they invest their assets in small local businesses instead of national or international banks.

Relationship-Based Banking

Your client relationships play a huge role in helping to make your business successful. When granting loans, community banks consider the information they have about their clients to determine if they can lend them money. You’re not just a financial asset or credit score to them. 

Community Banks Offer Better Rates and Lower Fees

Most community banks offer better borrowing rates and lower fees than large banks. They also don’t charge the same aggressive fees as big banks. It is a benefit to you as an account holder and benefits everyone else in your community. 

Banks shouldn’t charge unfair fees to increase their profits. Community banks invest in their communities by keeping more money in customers’ accounts. Both individuals and businesses will often see lower fees at community banks that allow them to keep more of their money. Large national banks are dependent on fees to make a profit and may sacrifice the customer experience.

However, local banks can be more accommodating. You can get a free account, lower monthly maintenance fees and help you avoid ATM fees and overdraft fees. Ask your local bank for the fee schedule and talk to other account holders to find out more.


After reading this article, you can see many of the benefits community banks provide. In many towns, they are the backbone. They provided much-needed support, not only financial means. You can find community banks sponsoring sports teams, participating in community events, and even offering special events of their own. Not only that, but that provided much-needed employment in the community.

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