When we think of companies and the services they provide, we often assume that a big company is automatically better. We think to ourselves, “well, if they are that big, it means they have a lot of customers, so they must be doing something right.” That thought process makes sense but is not always entirely accurate. Many businesses were good and did earn their way to the top, but as they got bigger, they started taking more liberties with customer service. Need convincing, think of what Wells Fargo did and visit Scandal for more information.
This happens all the time, and by then, they are so big most of their customers do not leave even if they could find better deals elsewhere. This is where the question of whether Bigger Banks are Better or Not comes in. That sentiment that if bigger is better holds for banks just as much as any other business, but is it the case?
Depending on your situation, the answer to that question is no. Big banks offer many benefits, sure, but you might be able to get far better deals and customer service by using a smaller community bank. Small businesses almost always have great customer service and a lot of perks to keep customer loyalty. Since they are smaller, they can not afford to lose customers as big companies do, so they go that extra mile.
When figuring out if Bigger Banks are Better or Not, you need to ask yourself what exactly you are looking for. If you want basic checking and savings accounts, then a smaller bank may or may not be better for you. You will have to look into your local community banks to see what kind of rates they have and check to see if they would save you money or not.
However, one aspect that small banks have an advantage in is loans. Especially small business loans. Big banks are often hesitant to give out loans, with small business loans being at the top of that list. But small community banks make most of their money by giving out small business loans. So if you are looking to open up your own business, you should look into your local community bank.
By using a local bank, you are not only helping your community by supporting them, but you are also helping your community by allowing more businesses to pop up. By keeping your local community bank afloat, you enable them to hand out loans so that people can start up that business they always dreamed about, which in turn creates jobs for your area. To learn more about how community banks help your community, visit Four Benefits of a Community Bank.
So not only are you getting better savings, but you are also helping out the community, and it is a win-win situation.
While these advantages certainly do not apply to everyone, they can make a big difference. If you decide whether Bigger Banks are Better or Not and are looking for alternatives, look into small banks and see what they offer. You might be surprised at what you can find when dealing with them.
If you have any further questions or need any financial assistance, please reach out to me directly if you are in or near the Nashville Metro area. For those outside of Tennessee, you are free to contact me as well or seek out a qualified fee-only Registered Financial Consultant near you.
