You have several options available when you choose a bank. One of the biggest choices to make is whether you’ll work with a large national bank or a local community bank. And that choice may be more important than you think.
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While large national banks will give you a traditional banking experience, a smaller local bank gives you the ability to build a relationship with your banker, which could open up products and services to help you manage your money more effectively.
Personalized Service
OK, so personalized service isn’t necessarily a lesser-known benefit, but it’s so important that it’s worth mentioning. When you build a relationship with your banker, they’ll learn quite a bit about you and your financial situation. That’s important, because it gives them the ability to take a customized approach to helping you handle your finances.
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How This Is Different From Working With Big Banks
Big banks typically take a one-size-fits-all approach to financial management. They typically recommend the types of accounts you need and the services you should sign up for based on a mix of your financial standing, your credit standing and the particular products the bank is attempting to push at the moment.
But when you form a more personal relationship with a small, local bank, you’ll enjoy recommendations based on your specific needs.
Not Having To Repeat Yourself
When you bank at a small financial institution, you’ll likely have direct contact with your banker — the one you build the relationship with. That comes in handy when you have an issue or process that takes more than one visit or phone call to work through.
After all, when you build a relationship with a personal banker, you’ll talk to the same person each time you call or visit the bank. As such, they’ll know your situation and why you’re visiting as soon as you walk in.
How This Is Different From Working With Big Banks
Big banks serve a huge number of customers, and they must employ a larger number of bankers to meet the demands of their branch. That means there’s a minimal chance you’ll talk to the same banker every time you walk in. Moreover, if you’ve ever called a large bank’s customer service phone line more than once, you know that it would be highly improbable for you to talk to the same person twice.
Unfortunately, that means if you need to visit the bank or call in more than once, you’ll likely have to repeat yourself to bring each banker you speak with up to speed.
Speed of Getting Things Done
When you need something done quickly, having an established relationship with your bank can help.
For example, say you need to fix a mistake on a scheduled ACH payment. When you work with a small bank where you’ve formed a relationship with your banker, you can call that banker directly. Small banks typically make it possible for their bankers to act quickly in various situations, prioritizing service and speed for their customers.
How This Is Different From Working With Big Banks
Big banks typically have set policies and procedures for each aspect of their business. Regardless of your situation, bankers must follow those, which can slow service times down significantly and make the rules less flexible. So there’s a high probability that you’ll be able to get what you need done faster at a small bank where you’ve built a strong relationship than you would with a large national financial institution.
Banker Access
When you bank at a small financial institution, there’s a high probability that you’ll receive your banker’s contact information. When you have a question or concern about your accounts or your finances, you can call your banker directly and discuss the issue. While your banker may be busy when you call, they’ll typically call you back pretty quickly if that’s the case.
There’s a high level of convenience involved in banking and financial management when you have a personal banker on speed dial.
How This Is Different From Working With Big Banks
Big banks generally don’t offer a personal banker, so you’ll have to speak with whichever banker is available at your time of need.
Not to mention, big banks serve a massive number of clients, and they typically do so on a first-come, first-served or scheduled basis. You may have to endure long wait times or schedule your meeting with a banker far in advance of your actual need.
Trust
Trust isn’t just important between friends, family and colleagues. It’s also important to trust your banker. If they have your best interests in mind, they’ll typically point you in the right direction, and you can be confident that the products and services they advise you to use are what you need.
How This Is Different From Working With Big Banks
Big banks often prioritize products over personalization. That means they tend to offer their bankers financial incentives to push the clients they talk to in one direction or another. For example, they may be inclined to steer you toward a top-tier checking account that comes with a monthly fee, even though they know they can serve you better with a free checking option.
But when you build a relationship with your banker, you can usually trust that they’re helping you make the right financial decisions for you, not for themselves.
Final Take
As consumers, we tend to follow the crowd and look for big companies to work with. That’s true in several industries, including banking. But automatically opting for a big bank could be a big mistake. Instead, consider building a relationship with a small financial institution. In doing so, you’ll have a higher probability of enjoying personalized service and all the benefits that come with it.
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This article originally appeared on GOBankingRates.com: 5 Lesser-Known Benefits of Building a Relationship With Your Local Bank
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