Whenever we think of companies and the services they provide, we often assume that a big and known company is the one 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. A lot of businesses were good and did earn their way to the top, but as they got bigger they started taking more liberties with customer service.
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 a big and well known bank is better or Not. That sentiment that bigger is better holds true for banks just as much as any other business, but is it really the case?
Depending on your situation, the answer to that question is no. Big banks offer a lot of 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 cannot afford to lose customers like 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 just want the 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 actually save you money or not.
However, one aspect that small banks have the advantage in is bank loans. Especially small business loans. Big banks are often very 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, then 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. So not only are you getting better savings, but you are also helping out the community.
While these advantages certainly do not apply to everyone they can make a big difference. If you are deciding whether bigger banks are better, and are looking for alternatives, then look into small banks and see what they have to offer, you might be surprised at what you can find when dealing with them.