Bigger Isn't Better When It Comes to Banking
It’s no secret that Fidelity Bank of Florida is not the biggest bank in the Central Florida region. But we may be the area’s best community bank, and now, experts are acknowledging that bigger isn’t necessarily better when it comes to banking.
In an article published in the Huffington Post, HuffPo blogger John Burnett highlighted how smaller community banks are well-poised to take better care of their customers than the global giant financial institutions.
“It's a common myth that big banks offer better service and provide more protection for depositors than main street banks ("community banks") in the event of a financial meltdown,” Burnett points out. “Consequently,” he continues, “many wall street big banks that have a global presence had to be bailed out by the government, while many smaller community banks that assumed less risk weathered the great recession without much help from lawmakers, lobbyists, and politicians.”
Burnett goes on to state that while consumers may choose any financial institution they want, the deciding factors should not include sheer size, but, instead, should be which bank “is best suited to provide mainstream financial access to the underserved.”
He brings up several additional valid points about community banks versus big banks: “Community banks offer financial services that are coveted by those desiring to become a part of the financial mainstream,” Burnett says, pointing out the services you are better off getting at a community bank, such as “basic checking and savings accounts with higher rates, debit and credit cards or loans, and check-cashing services.” What’s more, he mentions that community banks tend to provide all of these services while charging fewer fees, having lower minimum account balance requirements, and offering better customer service.
And then he talks about risk.
“Many people would be shocked at the level of risk that big banks take,” says Burnett. He adds that consumers likely would be more satisfied not only with a community bank’s lower risk, but also adds that “these banks offer to build a communal banking relationship, which is more likely to reinvest back into the community they serve.”
Fidelity Bank of Florida serves all of Central Florida with locations in Orlando and Brevard County.