Big Banks Vs. Community Banks – The Pros And Cons

We have tons of choices when it comes to choosing the right bank. Do you go with a big, corporate bank like Chase, or do you opt for a smaller, more personal community bank? There are benefits and drawbacks to both options. Here are some of the factors to consider when choosing a financial institution.

Small banks prioritize local citizens. Instead of relying on just credit scores and financial history, smaller banks typically look at customers’ banking relationships – how long someone has had their account and if their family has one too. They’re also more likely to lend to local businesses who might not qualify at bigger banks. 

But there are disadvantages, too.

Smaller banks provide fewer products and services, and because they’re typically local to their area, when traveling you won’t always find a branch.

Big banks offer tons of services, products, and accessibility to their customers. They also typically offer better technology services like mobile apps. 

But bigger banks also tend to have big issues as well – like charging higher fees and not prioritizing lower or medium-income customers. They also tend to lack a sense of community that is cherished at smaller banks.

Picking the best type of financial institution, whether a corporate bank or local one, is crucial. Depending on what you value as a customer, either option could be right for you!