We get brand loyalty. You’ve been using the same kind of toothpaste for over a decade, there’s only one type of coffee that tastes right in the morning, a small handful of sources you trust to deliver you news.

But when is the last time you second-guessed your bank?

A lot of us sign up early in our financial lives with a national bank, maybe one offering painless on-campus signup to freshmen, or the one you went with because they have branches everywhere you go. That national bank doesn’t do as much for you as your morning ritual, though. More likely, it’s an out of sight, out of mind life process that you take for granted.

If your primary financial institution is a mega bank, chances are you have a lot to gain by making the switch to a local bank. Here’s why you should rip off the band-aid and switch to a local bank, and some pointers to help you get started.

Why bank local?

Community banks offer the same financial products as national chain banks: personal loans, checking accounts and savings accounts, auto loans and mortgages, business services, and other types of financial products. Community financial institutions will also typically offer the same products and online banking services you might have grown used to as more and more of your banking has migrated to your phone: things like online bill pay and mobile check deposit are huge time-savers.

If both tiny, local financial institutions and big banks offer these things, why switch to a local bank?

There are many upsides to choosing a community bank to manage your funds. This is something we’re passionate about at Falcon National Bank. Here are just a few of those upsides:  

Better service

Community banks operate at a human scale; mega banks operate at the scale of global commerce. A smaller shop lets local institutions focus on real, face-to-face relationships. Local banks aren’t reliant on Super Bowl ads with a celebrity spokesperson to open accounts like the big corporate banks. They trade on service, not sizzle.

A community financial institution is more likely to view you as a person than a number, and their customer service reflects that. As a result, a local bank or credit union is a more reliable partner in your long-term financial journey.

Improved finances

National banks can be convenient but will probably cost you more money in the long run. They’re more likely to hit you with sneaky service fees on your checking account or savings account, even if they hooked you in the first place with flashy services or rewards. Depending on how extensive your account holdings are — say checking, savings, a credit card, and a loan — there are likely many ways you can improve your financial picture by switching to a local bank.

This doesn’t just mean better rates or lower fees, though you’ll often find higher interest rates on checking accounts and lower interest rates on credit cards at local financial institutions. That translates to more money for you in the long run. Many local banks go a step further and give out rewards (as in, cash) as part of your checking account (Kasasa). 

Community impact

A community financial institution will be more invested in your long-term well-being, and in the health and wealth of those around you. Banking local makes a huge economic impact in common sense terms (think loans and jobs). A local bank is a local business, while a national bank is usually part of a multinational corporation.

More than half of all small business loans under $1 million come from community banks, according to Independent Community Bankers of America. Small businesses are the backbone of the nation’s economy, and owned and operated by people who are your friends and neighbors. When you bank with a community bank, your money helps support and grow your local economy.

"Sounds like a lot of work."

To play devil's advocate... for a lot of people contacting your bank for anything is right up there with lining up at the DMV on the necessary evils list. Even if you’re fed up with the long wait times and poor customer service at your primary financial institution and are ready to jump ship, you still need to get in touch with the bank’s customer service to initiate the exit. Kind of a catch-22. Can’t argue there. 

You might also be concerned about the inability of a small, local bank to offer the same level of security as a mega bank with a market value in the hundreds of billions. Here we can push back.

Your local community bank is just as secure as any big bank. All banks are subject to federal security standards and safety protocols. In order to operate, all financial institutions must meet rigorous compliance standards. Many community banks also give you access to other services for your peace of mind.

Switching is easier than you think

Switching banks can be a hassle, no doubt. And you’re less likely to get help with the process when you're switching from one big bank to another. Switching to a community bank doesn’t have to be that difficult. Reach out to us today and we will help you every step of the way. Let’s help you get on your way to financial wellness!