COMMUNITY BANKING
Community banks have long been among the great alternatives to large banking institutions – depository institutions serving the needs of a local community ’ s individuals and businesses .
Contrary to the national and / or global ambitions of larger banking institutions , community banks , alongside credit unions or building societies , are tailored to support the specific needs of the communities they serve .
Kin + Carta ’ s Financial Services Director Europe , Phillip O ’ Neill , sees community banks as being important for supporting those in underserved communities .
He says : “ Because community banks are set up in local communities , they have a deeper , more intricate understanding of the people they serve and can use this specialist understanding to offer people and small businesses access to financing in cases where they would have been rejected by high street banks .”
Head of Payments Infrastructure at OpenPayd , Barry O ’ Sullivan , adds that while community banks have “ fewer business lines than a large bank , focusing mostly on day-today banking , mortgages , and small business loans ”, these companies have a deeper understanding of their local communities .
He continues : “ Most consumers will be familiar with building societies and credit unions that focus on a specific region .
“ These companies rely on knowing their local market better than a high-street bank and reinvest the deposits held with them back into the community . Many will also have some element of community ownership .”
Despite the perks of community banks , the tag of ‘ alternative ’ has always loomed
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