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Should I choose a local bank or a national bank for my business?There are many differences between a national bank and a local. Which you choose depends on your businesses needs and what is important to you. Here are the five differences and some information about each to help you in your decision. The first is customer support. Large national banks have a less personal approach to customer support but may also have more branches for your banking transactions. Local banks have a more personal feel to them you could even get on a first name basis with the manager of a local bank much more quickly than with a large national bank. Local banks change their policies more readily to meet the needs of the local customers. One draw back for local banks is there are fewer locations to do your banking. As the old saying goes it's not what you know but who can also apply to banking. Usually the local bank is prominent people in your community who would be good networking contacts for your business.
The fifth is investment opportunities. Usually you can invest more readily in your local banks and be part of the operating and decision making body for a local bank giving you more control of the things happening. If a local bank is bought out you would either be offered the same shares of the bank purchasing it or have your shares purchased at the time of the buy out. Either way your investment is usually safe. The sixth is name recognition. Large national banks have the name recognition and trust factor. This could be a benefit you are looking for name recognition or could just cost you more. You need to measure which things are the most important to you. Figuring the discounts if any that a bank will give you for getting all your services from them. If there is no discount than maybe you should have several banks each meeting different needs for your business. You don't have to be loyal to only one bank unless it is good for your business
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