I used to work at a local community Bank for about 3 years: I was in 1he commercial lending department While I was working here, I learned most of my experience and fonned my base before moving to ano1her larger Institution. One of 1he things I learned whlle wortclng here Is 1hat local community banks often end up working a lot more than national or international banks. Their goal is not only to make money but also to be competitive with the larger institutions when offering 1heir products and seNices. If you 1hink about it, all businesses, regardless of the product or service, have the goal of not only to win the business but to obtain good long-term revenue.
Lefs look at what 1he marketing mix of a local community bank looks like:
►Product commerclal and small business loans, mortgages, HELOCs. The agreement between the client and the bank can be tailored to their needs many times
►Price: interest rate on loans, competitive high-yield rates for savings accounts and CDs. In this case, the bank prefers to offer good/higher rates to win a larger relatlonshlp and think long term
►Place: aHhough local community banks don’t have as many locations as a larger bank, their locations can always be found in important commerc
You might think: how can a local community bank compete with a larger bank when a client is looking to refinance their commercial real estate property? Well, aside from the marketing mix mentioned above, the banks must obtain pre-approval before starting the actual underwriting of said loans. In this initial phase, Is where the smaller banks prepare the strategy to win the client because many times they have options to offer the larger bank can’t compete with. As mentioned in the article Why Choose a Community Bank? Community Banking Benefi1s -Independent Banker – ICBA.org: Community banks provide mere than a service or product; they look to take care of their clients like family, support local businesses,. and create partnerships that help elevate the bank’s image and make ‘their marketing mix work effectively.
