Myth: Bigger Banks Mean Better Benefits

Community Banks vs. Big Banks

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4 Minutes

Turn on the TV and chances are there’s a commercial discussing all the benefits consumers have when choosing to bank with specific big banks.

Yes, it’s great that some offer cash back and other benefits, but how much of their dollars do we see in our own neighborhoods and communities?

The truth is, a little “cash back” here and there can be such a small effort to show that these banks have their customers’ best interest in mind.

Many times, the dollars deposited into accounts or funds used for lending by larger banks are shipped out and soaked up by cities like Charlotte or New York where the local community derives little to no benefit.

Think about it - How many times have we seen a big bank's logo on a youth sports jersey? Probably not often.

So, what does it take for a bank to truly show how much they care?

Community banks have mastered it: by supporting their communities, small businesses, and residents that live and work in the areas they’re located. Those are the logos we see regularly sponsoring our local organizations and events.

Banks That Care

Community banks are one of the most philanthropic partners that non-profits and organizations have in their communities.  They use their profits to support the needs of local people that need a helping hand, not only in dollars, but in volunteer hours put in with local organizations. 

To sum it up, they look out for their own.

Safety of Depositor Funds

Did you know that your local community bank has most of the same tools at their disposal that larger banks do?

For example, they can provide significant FDIC insurance for you and your business.

With the tools to title accounts that can maximize your FDIC insurance, the capability to provide the utmost safety for community bank customers is there, and not to mention, employees of these banks care about establishing personal relationships with their customers, not just in a financial sense.

Getting to Know the Customers

Community bankers know that by getting to know their customers on a more personal level, this allows them to add layers of protection for their customers’ financial livelihood.

They know your face and your name, limiting the potential for fraudulent transactions that can deeply affect the financial well-being of their customers.

But an extra layer of fraud protection is just the beginning.


Having relationships with community banks, can lead to a more personalized lending experience as well.

Lenders at these banks take the time to get to know their potential homebuyers, ensuring they can not only meet the needs of these individuals and families, but help find them the most fitting programs to help relieve some of the stress that can come along with the homebuying process.

It’s clear that the relationships between customers and community bankers are a huge benefit, but maybe you’re thinking that larger banks have a technological advantage over community banks.

That is not always true.

Leveling the Technological Playing Field

Technology has evolved so much, bringing community banks up to speed with the bigger banks and closing the technological gap.

Community banks can absolutely provide benefits like comprehensive cash management services, along with those local people who care and will answer your call when you have a question.

Gone are the days when community banking meant only being able to service basic needs. The capability of these banks has far exceeded the ability to simply offer checking and savings accounts but can also tackle small-business and commercial needs, as well as offer investment opportunities.

So Why Choose Community Banking?

To answer the question of why consumers should choose to do business with a community bank over a big bank, community banks overwhelmingly support the lending needs of individuals and businesses in your communities, lending the deposits that the community entrust to them. 

In other words, community banks power the dreams of their community in making home ownership a reality, financing vehicles to get to and from work and school, helping business owners succeed and thereby providing employment opportunities for friends and neighbors.


If you’re banking with a larger bank and haven’t checked out a local community bank lately, stop in and see what they have to offer. You might just be doing yourself and the community a favor by switching your banking relationship to a local, community bank.