The Unique Role of Community Banks in the Financial Industry

At Deerwood Bank, we pride ourselves on our unique role as a community bank, deeply committed to serving and supporting our local communities in Minnesota. In the vast landscape of the financial industry, community banks stand out for their unique characteristics and crucial role in supporting local economies. While large national banks often capture media attention with their expansive reach and technological innovations, community banks quietly provide essential services that form the backbone of many communities throughout the country.

How Community Banks Differ from Larger Financial Institutions Personalized Customer Service

One of the most notable differences between community banks and larger financial institutions is the level of personalized customer service. At Deerwood Bank, we frequently hear from our customers that they continue to choose us because of the genuine, personal relationships they have developed with our bankers—relationships that sometimes span decades.

Community banks often pride themselves on knowing customers by name and understanding their individual financial needs. This personal touch fosters strong relationships and a sense of trust that is often missing in larger banks, where customers may feel like just another number. By having a deep understanding of their local community, community banks can tailor their services to better meet specific customer needs, offering flexible loan options, financial advice, and support for local events and sports teams.

Local Decision-Making

At community banks like Deerwood, decision-making processes are localized. This means that lending decisions, account structures, and other financial choices are made by individuals who live and work in the community. This localized decision-making allows for a more personal and flexible understanding of the local community and the specific needs of its customers.

In contrast, larger banks often rely on centralized decision-making processes, where customers have to fit into a predetermined set of criteria. For example, loan applications might be assessed based on standardized metrics, without considering the unique factors that could influence a local business or individual’s ability to make payments.

Commitment to Community Support and Development

Community banks are deeply committed to the economic development of their local areas. They frequently invest in local businesses, sponsor community events, and support initiatives that drive regional growth. This commitment extends beyond providing financial services; community banks often play an active role in fostering a vibrant local economy.

For instance, during economic downturns or crises, community banks have a track record of stepping up to support local businesses and residents. This was particularly evident during the Paycheck Protection Program (PPP) surge during the COVID-19 pandemic, when our ability to respond quickly and adapt to local needs became a lifeline for small businesses and individuals facing financial hardships.

Tailored Products and Services

Community banks often excel in offering products and services tailored to the specific needs of their local markets. This might include specialized loans for local agricultural businesses, customized financial planning services, accounts that cater to the unique needs of healthcare providers, or even providing aircraft financing when needed.

At Deerwood Bank, we recognized a demand for secure money transfer options for young students attending events or tournaments. In response, we developed the Next Checking Account, specifically designed for students, with a connection to their parents’ accounts for easy transferring and controls.

The Vital Role of Community Banks

Community banks like Deerwood play a vital role in the financial ecosystem of a community economy. Our personalized service, local decision-making, commitment to community development, and tailored financial products make us an invaluable resource for individuals and businesses alike. Moreover, our technology and lending capabilities are on par with larger banks, all while maintaining a genuine connection to the communities we serve.

As we navigate an increasingly complex financial landscape, we invite you to experience the benefits of community banking. Discover how community banks can provide a more personalized and supportive financial experience, rooted in a deep understanding of your local community.