BY JOHN TOLOMER
Community banks offer a distinct advantage to consumers and small-to-midsize businesses compared to regional or multinational banks. Community banks are able to deliver the same products and services offered by the largest financial institutions in the world with one key differentiator ”“ community banks deliver those products in a highly personalized manner.
Take borrowing needs as an example. Community banks make loan decisions locally and have highly skilled lending officers who live locally, have a keen appreciation of the community, understand local market conditions and are trained to explore ways to grant loans suitable for the customer and the bank.
Conversely, larger financial institutions have lending centers that are centrally located for their nationwide businesses. What does that mean to you? It means your loan application is sent to another state for a credit decision, far from Westchester or Fairfield counties. Their size dictates a need to create an underwriting criteria for approval because they are simply not equipped to spend the time required to properly analyze each request. If your application meets the underwriting standard, you are approved; if it does not meet the minimum standard, you are declined. It is a process devoid of personal contact and any meaningful dialogue between you and the bank.
The contrast in process is clear. Do you want to build a partnership with a community bank that offers you all of the products and services needed and delivered in a highly personalized manner, or risk an underwriter from another state deciding what is best for you and your business? The financial crisis in 2008 and 2009 demonstrated just how important it is to be able to communicate with an individual locally, with a banker who understands and can react to your changing needs. Calling a big bank”™s 800 number in hopes of reaching someone who may be in a position to help may not be what you need in today”™s fluid business environment.
The combination of technological advancements at community banks and the financial meltdown helped community banks design a banking model that provides a customized, comprehensive approach to meet each customer’s banking needs. Community banks”™ portfolios of depository and cash management products now include free online bill pay services, remote deposit scanning, incoming and outgoing ACH services, and online banking for immediate account access to transfer funds between accounts or wire funds to another institution, or simply to review your bank account information.
At a community bank you have multiple bank contacts, from a lender to branch manager to cash management representative. The community bank wants to provide you with a written proposal for both credit and deposit/cash management requirements. It is a straightforward method to evaluate your current and future banking relationship.
If you seek a bank that offers all of the products and services you need and want them delivered in a highly personal manner, I recommend you “go local” and go with a community bank for your current or future needs.
John Tolomer is president and CEO of The Westchester Bank in Yonkers. He can be reached at jtolomer@twbusa.com or 914-410-6265.
