From client satisfaction to making decisions that are in the best interest of your customers, there are many benefits to banking locally — especially when it comes to your business.
Whether it’s managing accounts, securing financing for growth, purchasing commercial real estate, or simply handling business banking needs, mutual banks provide a level of service that fosters long-term relationships and trust,” says Scott Gnau, Commercial Lending Leader at First Federal Lakewood.
“Banking local not only supports your business but also contributes to the economic vitality of the communities where we all live and work.”
Smart Business spoke with Gnau about the benefits of banking locally and how it can positively impact your business.
Why should business owners consider banking locally?
The choice to bank locally can positively impact your banking experience. When you choose a mutual bank, it can improve your peace of mind and professional efficacy. Your relationship with your mutual bank can be a cornerstone of not just your financial strategy, but of a broader community commitment strategy for your business. Local mutual banks offer more personalized service and provide products and services tailored to your business.
Additionally, mutual banks are owned by their depositors, meaning leadership makes decisions that are in the best interest of the bank’s customers, not shareholders. They prioritize the needs of the local community first because they work and play in the same neighborhoods as you do. In turn, this strengthens your community connection, and it could lead to new opportunities for community-based partnerships and initiatives.
How does banking local positively impact businesses?
Banking local also means your money stays local since mutual banks reinvest your deposits and loans directly into the community. This way, you can see your money at work in your own neighborhood.
Additionally, local banks often have volunteering goals that encourage employees to participate in development projects to improve public amenities or support local charitable organizations. Local banks donating their time to support the community is just one more way they keep their promise of reinvesting in their areas.
Local mutual banks have a better understanding of state-specific nuances, as well as the specific financial needs of local businesses. They’re equipped to offer financial products and services tailored to your needs, whether it’s growing your business or managing cash flow more efficiently. You’ll operate more comfortably when your banking partner is equipped with the knowledge to provide one-on-one advice and solutions.
With a mutual bank, decisions can often be made quickly, and this means quicker loan approvals, faster response times and significantly less red tape so you can reach your business goals.
What about fees?
Fees are an often-overlooked consideration when choosing a banking partner. However, local mutual banks often offer more competitive fees when compared to commercial banks.
Their lower overhead costs and community-focused approach enable them to provide more competitive rates and lower fees on various services. And mutuality means the bank prioritizes long-term, people-focused decisions that benefit clients and the community. At the end of the day, products are products, rates are rates, and terms are terms — what sets a bank apart is the relationship it has with its customers. Knowing who’s on the other end of the partnership and who sits at the decision-making table makes all the difference.
Banking local is more than just a financial decision; it’s a commitment to supporting your community and ensuring that your banking needs are met with personalized, responsive service. The advantages are clear: faster decision-making, a deep understanding of local businesses, competitive fees and the opportunity to make a positive impact on the community. ●
INSIGHTS Banking & Finance is brought to you by First Federal Lakewood.
