The Increasing Importance of Community Banks
Community banks are more important than ever before. That’s why we’re so proud to be Utah’s community bank. We service Salt Lake City and Lehi communities with exceptional business banking services. From business checking to small business loans and more, we play an important role in the success of businesses in our community. We are first and foremost, a community bank serving the needs of Utahns. But what makes community banks so important? Consider for a moment that community banks are threaded into the local economy of many towns in the country. If a small business wants business checking services in Lehi, they know they can turn to their local community bank. By serving the local residents and businesses with the financial services they need, community banks help them succeed.
These days, there are more financial institutions to choose from than ever before. From big banks to small banks, credit unions, and other exotics financial institutions – people have plenty of options. So, what’s the best option? Since the establishment of megabanks (or large national banks) in the late 1990s, these larger financial institutions have gained recognition due to brand name awareness and full-service options. Yet as larger banks continue to nationally centralize their services, something gets lost in translation. They lose their connection to their community and begin to focus more on shareholder return. That’s why it is more important than ever to preserve the integrity of smaller institutions. It is these community banks that do the local work helping to keep their communities thriving.
Being involved in the local community represents one of the most important aspects of community banking. But besides community care and involvement, the benefits of community banks can be found in their robust range of financial services. They can provide specialized services that their larger, more national counterparts cannot. Whether you’re a small business, an advisor to a small business, or an individual looking for financial services, community banks can serve your needs. From Lehi to Salt Lake City, we work with individuals and institutions just like you every day.
How Lehi Businesses Benefit from Community Banking
Entrepreneurs and business owners understand the importance of a community bank they can rely on. Who better to understand your needs than a local community bank? Let’s examine the several advantages community banks offer to small businesses.
First, consider something called relationship-based banking. You know better than anyone that your business is based on your relationships with your clients. People continue to do business with you not just because you offer a particular product or service. They do business with you because you have created a relationship with them. They trust you. Well, just as you’re well known by your community, community banks factor in what they know about the character and qualifications of their clients when deciding to grant a loan. They live and work in the same community as their clients. To a Utah-based community bank like us, you’re more than a credit score or dollar amount.
Community banks like First Utah Bank also have intimate knowledge of the local economies where they operate. They are better able to assess the needs of the community when deciding to grant a loan. While larger national banks might only look at numbers and statistics, a community bank’s insight into local market conditions results in faster loan approvals. Did you know that community banks hold a third of all small business loan volume? That represents double their share of the banking industry’s total loans. Quite impressive for what many would consider smaller banks.
Faster Decisions and Greater Collaboration
Whether a significant piece of equipment needs to be replaced or you need to finance a new office building, a community bank provides faster decisions to keep your operation humming. Why? Because a community bank considers loans based on its own standards, unlike the large national banks that use a strict set of guidelines passed down from another state or country. When the corporate headquarters has no real idea about the conditions in your local community, you can’t expect them to make decisions based on factors that directly impact you and your business.
While it is true community banks do not have the scope or lending capacity of large national chains, they instead offer a collaborative environment. They collaborate on the credit/lending process to offer loans to more small businesses in their communities. In turn, they can then serve more members of their communities. When they work closely with the businesses that operate in their communities, they can make faster, more fair lending decisions.
Consider the appeal of community banks when compared to national megabanks. While megabanks attempt to appeal to consumers through national advertising and more branch locations, community banks are the smarter banking choice for personal accounts. And we are proud to be a community bank providing more choices for businesses in our community. Do you want to work with a community bank that you can trust and believe in? Consider First Utah bank for your business banking needs in Lehi and beyond.