Have you noticed that there seem to be fewer bank branches in your area? You’re not imagining things. Over the last four years, the number of bank branches has declined nationally by 7%.
In the small town I live in, we’ve lost branches from two of the biggest banks in the country. So much banking takes place online these days that many people are entirely unaffected by the change. As long as they have the internet and an ATM nearby, their needs are met. But there are still many individuals and small business owners for whom their bank branch is essential.
Here is where I get on my soapbox about banking local. When things hit the fan and the big banks retreat to their home base, local banks will still be here standing. Banks like Surety offer comparable online services, plus the benefits face to face relationships.
When you apply for a business loan with a big bank, your request is collected and forwarded to an individual sitting in a dark room in an office somewhere in New York or North Carolina. This person with the power to approve or decline your loan never has and never will meet you. They know nothing about the small town or whether your neighborhood has an appetite for a business idea like yours. All they have is data out of context to make a decision that could change your life.
On the other hand, the decision-makers at local banks are invested in the communities where they work. If my small town doesn’t thrive financially, neither does my bank. When COVID hit, and many banks were slow to release PPP loans, our bank was one of the first in the area to begin loaning money to our clients. We have established relationships with businesses in our community that no small business owner could ever have with a big bank.
As the banking world becomes increasingly digital, the departure of big banks from small towns will increase. Eventually, the chasm between big banks and their small business customers will grow deeper and broader, driving more people to small banks where they are known. As the leader of a small bank, it’s my job to believe in the work we do, but the proof of concept is in the influx of customers we saw during the height of the pandemic. They needed PPP loans to keep their businesses afloat, and the big banks weren’t moving fast enough. So they turned to us, and we were there to help.
Some banking customers don’t need much more than a checking account and an ATM. But many more report feeling underserved by their current banking relationship. If you’re ready to build a strong relationship with a local bank, give Surety Bank a call.
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