Scene of businesses with people on Main Street St. Charles, MO

The Role of Community Banks in Supporting Local Economies

Local economies are made up of many essential moving parts, but community banks are without a doubt at their center. Local financial institutions foster growth and stability for the entire community, providing crucial services tailored to meet the specific needs of those around them. Whether they are providing small business loans, helping with local development programs, or just doing good in the area, community banks are essential. To help you better understand how these local financial institutions make a difference in their hometowns for businesses and individuals alike, take a look at some of the roles community banks play in supporting local economies—

Building Trust In Financial Systems

Banking with large financial institutions has been a source of fear and mistrust in the past for many, causing them to be skeptical of banks overall. Large banks may feel distant and aloof, treating you like just another number whose money can be moved around for their benefit. Banking locally will show you that another experience is possible. Community banks establish strong personal relationships with their customers, getting to know not just their financial needs, but who they are as a person. They are honest and transparent about their programs, helping you have peace of mind knowing your finances are secure when banking with them.

Personalized Financial Programs

Local banks are just as much a part of the community as you or your small business are. As such, they are intimately familiar with the needs of the community and can create financial services catered specifically for it. Are small businesses in the area looking to add locations? Your local bank may offer financing plans tailored to help them in your specific local economy. Is the community concerned with the security of their information in the digital age? The community bank may take extra steps to ensure their digital banking systems are safe for all to use. Your bank knows your local economy because they are a vital part of it. Each service they offer will be in careful consideration of how it will affect or benefit the community.

Financial Inclusion

It happens time and time again that individuals and small businesses who need financial help or specific services are denied by large financial institutions. They often prioritize well-known institutions or customers with airtight credit—in other words, whoever will make them the most money with the least work. Local banks are different. These smaller, community-focused institutions have the ability to help those in need of financial services that others may ignore or outright refuse. Many of them offer personalized advice, programs to help those with less than ideal credit, important financing options for up and coming businesses, and access to financial options often not available in rural or low income areas. Your community bank is there for just that—your community.

Promoting Local Investment and Economic Growth

When you bank locally, you can be sure that your money stays within your community. The funds accrued by community banks are reinvested in the forms of loans and financing projects for small local businesses, projects, and infrastructure, helping the community grow and thrive. Banking locally gives back to your community in a way that would not be possible with larger financial institutions. In addition, many small banks are involved in local non-profits, charities, and community development, promoting community wellbeing through grants and financial opportunities you would not find elsewhere.

 

A community’s finances are a huge part of its ability to thrive, and having a local bank dedicated to the specific needs of its clients is a vital piece in making sure the community has everything it needs for this financial wellness. We are proud to serve as your local St. Peters financial institution. We have a deep commitment to the wellbeing of our community, providing financial advice, help with financing, digital banking solutions, and financial security to our local businesses and citizens. When you bank with us, not only will you be receiving personalized financial services but also giving back to the local economy, keeping it all in the family. Our priority is you—bringing you the best possible banking solutions with cutting edge technology and a community that cares. Member FDIC and Equal Housing Lender