Expert Contribution

Why Bank Locally?

Hi, I’m Daniel Fujimoto from Community Bank of the Bay’s (CBB’s) Danville office. 

Big-multinational banks have used their name recognition, lengthy history and the power of spending billions on advertising as the reasons why you should bank with them, but we know there is a better way.

Community banks are gaining momentum with consumers who are looking for something more personal than what megabanks can offer. It’s important to understand that while all megabanks, community banks and credit unions are subject to federal regulations, not all banks prioritize their client’s best interest.

Types of Local Banks

Community Banks are generally for-profit businesses. Local banking is financially similar to shopping locally. These banks exist to create jobs in their local communities and are stable financial partners for small businesses, entrepreneurs, and nonprofit organizations in the communities they serve.

Credit Unions are nonprofit organizations where each customer is a member (which may include some qualifications), and profits are returned to members, usually in the form of lower fees, surcharge-free ATM usage, and lower loan rates.

Benefits of Banking Locally

Reports show that roughly 33% of adults in the US would prefer to bank at a community bank or a credit union rather than a megabank. This is due in part to the fact that local banks employ the people who live in the community.

Historically, local banks are deeply rooted in their communities. You can walk into your local bank and be welcomed by name! Local banking institutions understand that their decisions directly impact their local communities and use that as their guiding principle.

At CBB, our community continues to come first, especially during rougher times. For example, CBB helped over 650 local small businesses secure Paycheck Protection Program loans during the pandemic. Our PPP team worked around the clock (even on weekends) to secure PPP loans for both clients and non-clients. We even worked on smaller loans, which was certainly “different, on purpose”. In fact, our smallest PPP loan was under $500–we’re told that was unheard of. When CBB said we would turn no one away, we meant it!

While “big” banks have major financial lending capabilities as stand-alone institutions, many local banks have created a way to work together and provide larger loans to small businesses through collaborative lending.

If making a move to a local bank has been on your radar, it’s time to make the switch. CBB offers quick decision-making and local knowledge when it comes to lending: our lower banking fees, fee-free access to nationwide ATMs makes the choice easy. Stop in to CBB and see why community banking is the best-kept secret in the financial industry.

By Daniel Fujimoto, Community Bank of the Bay

About The Author

Team Danville
Community Bank of the Bay

Established in 1996, Community Bank of the Bay (CBB) is an independent, community-focused bank. Our mission is to foster and promote economic development in the communities we serve. We take the time to listen, understand, and develop customized financial solutions to support the needs of businesses. CBB is a FDIC member, SBA Preferred Lender, and a CDARS depository institution. We are California’s first FDIC-insured certified Community Development Financial Institution (CDFI). 

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