Benefits of Banking Locally


Local financial institutions offer better rates in addition to more personal service

Whether you’re looking into buying a new home, helping your child pay for college or hoping to head off on that dream vacation, you might be debating where to apply for a loan. Smaller, local financial institutions frequently provide lower rates and have much more to offer—including customer service that is more personal and a stronger presence in the surrounding community—compared to the larger national institutions.

“Community banks can offer personalized services the larger banks have a difficult time matching,” said Aaron Skloff in the Princeton Business Journal. “Whether it is a teller’s smiling face or a bank officer delivering documents to your business, community banks go a long way towards providing a high level of personalized service. Community banks have done a good job of retaining their staff, allowing them to provide a consistent customer experience.”

Justin Dahlheimer, a loan officer at the First National Bank of Osakis, made these interesting points in support of choosing a local institution:

Similar services to the larger banks but at a lower cost. Community banks offer typical services such as online banking and debit and credit cards, but their regular fees tend to be significantly lower than those of national banks. Studies also show that smaller institutions offer better terms on credit cards and loans and better rates on savings.

Strong relationships with customers. Loan approvals and other important decisions are made by people who live in the community, understand local needs and have personal relationships with the customers. Knowing the customers allows local financial institutions to approve loans that larger institutions might not.

Support the local economy. Small businesses depend on small banking institutions for financing; small and midsize financial institutions account for more than half of all small business lending.

Focused on the community. “The more the community prospers, the more the local bank benefits.” This is one reason local institutions make being involved in the community a high priority.

Choosing to bank with a local institution offers numerous benefits. If you’ve been thinking about applying for a loan, especially for an automobile, stop by your local branch today so a financial professional can offer you a great low rate.


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