Empower Your Business with Local Banking
Harness the Power of Community-Focused Financial Choices
When you’re running a business, choosing a bank might seem like a simple operational decision. However, for companies committed to being a force for good, selecting a local bank or credit union over a national banking giant can create ripple effects that strengthen both your business and your community.
Discover how choosing a local bank can transform your business and community, aligning your operations with your values for greater impact.
My Ahaa...
I never thought much about what bank to use – I was just happy to have a business account to keep my personal and business finances separate. Then I took the B Lab’s B Impact Assessment some years ago and realized that choosing a bank was much more important than I knew.
I did a little research and really liked the idea of supporting OneUnited Bank as it is the largest Black-owned bank in the United States. I tried to open an account but the issue was that there were no branches in Colorado and at that time I would have had to set up the account in person though I could do online banking after that.
I was bummed but pivoted to use a local credit union, Canvas, and they’ve been great! Plus I really appreciate the support they provide the local community here.
So I am sharing some of what I learned during my research to help give you a head start on thinking about your company’s business banking.
The Significance of Local Banking
Building Stronger Businesses and Communities Through Local Financial Choices
Why Local Banking is Essential
Local banks and credit unions play a pivotal role in fostering economic growth within communities. By choosing to bank locally, businesses can contribute to a cycle of prosperity that benefits everyone.
Contrary to common belief, local banks and credit unions often offer more competitive rates and lower fees than national banks. Their lower overhead costs and community-focused mission frequently translate into better terms for their customers.
Local banks take time to understand your business model, goals, and challenges. This deeper understanding often leads to better loan terms, faster approvals, and customized financial solutions that align with your business needs.
Moreover, local banks reinvest a significant portion of their deposits back into the community, supporting local projects and creating jobs, which in turn strengthens the local economy.
In fact, community banks provide 60% of small business loans despite holding only 20% of all bank assets in the United States.
Exploring the Advantages of Local Banking
Enhancing Business Success Through Personalized Banking
Local banks offer a unique advantage for businesses by providing personalized service and a deep understanding of the local market. Unlike larger banks, local institutions prioritize building relationships with their clients, ensuring that business owners receive tailored financial solutions that align with their specific needs and goals. This personalized approach not only facilitates faster decision-making but also fosters a sense of partnership, where bankers become trusted advisors invested in the success of your business.
Strengthening Communities Through Local Banking
The Community Impact of Choosing Local Banks
Choosing a local bank can have a profound impact on your community’s economic health. Local banks reinvest a significant portion of their deposits back into the community, creating a multiplier effect that supports local businesses and projects. This reinvestment leads to job creation and retention, as local banks often employ community members and support local initiatives. By banking locally, businesses contribute to a cycle of economic growth that benefits everyone in the community.
Moreover, local banks play a crucial role in community development by supporting local nonprofits and offering financial education programs. Their commitment to community welfare extends beyond banking services, as they actively participate in initiatives that enhance the quality of life for residents. This dedication to community development ensures that your banking choice not only supports your business but also contributes to a thriving local economy.
Empowering Women Entrepreneurs Through Local Banking
For women-owned businesses, local banks offer distinct advantages that can help overcome traditional barriers in the financial sector. Many local banks provide specialized programs and resources tailored for women entrepreneurs, ensuring access to capital and support that aligns with their unique challenges and goals. Additionally, local banks often have more women in leadership roles, fostering an environment of understanding and empowerment.
Choosing a local bank can also mean more flexible lending criteria, which can be particularly beneficial for women-owned businesses. These institutions understand the importance of relationship-based banking, taking the time to learn about your business model and aspirations. This deeper understanding often results in better loan terms and customized financial solutions that support your business’s growth and success.
Take Action!
Identify Potential Banks
Start by compiling a list of local banks and credit unions. Reach out to fellow business owners for recommendations and explore online resources to identify institutions that align with your values.
- Search for “community banks” and “credit unions” in your region.
- Check the Independent Community Bankers of America (ICBA) website.
- Look for banks that are certified Community Development Financial Institutions (CDFIs)
Evaluate Services and Reviews
Investigate the services each bank offers, such as business checking accounts and loan options. Ensure they have positive customer reviews and are insured by FDIC or NCUA.
Schedule Consultations
Arrange meetings with your top choices. Prepare questions about their support for women-owned businesses and their unique offerings compared to larger banks.
Empowering Your Business
The Local Banking Advantage
REMEMBER: Choosing a local bank empowers your business with personalized service and community-focused benefits. By banking locally, you contribute to economic growth and gain access to tailored financial solutions.
Take the first step towards aligning your business with your values. Start your search for a local banking partner today and experience the difference they can make for your business and community.