Though many large, national — and even international — banks have a presence in the Upstate, community banks and credit union executives say there’s still something about going local when it comes to where you bank.
When a customer deposits their money in a local bank or purchases a CD at a local credit union, typically a larger percentage of the customer’s money is reinvested into the local economy. That reinvestment could come in the form of small business loans, wages for bank employees or purchases the bank makes from local stores.
“Everything stays local so there’s no selling off loans. When you get a CD with us, we’re not sending it to other places,” said April Rains, marketing specialist at Citizens Building and Loan — known as CBL — in Greer. “Everything is serviced right here in-house and stays in-house.”
Smaller, more nimble
An advantage of local banking, Rains said, is there are some offerings that larger, corporate financial entities just can’t provide. “If you’re a builder and you want to build on a piece of property, that’s virtually impossible with a lot of larger banks, but we’re able to do that,” Rains said. “We’re able to look at the unique situations and make a decision.”
Eric Wall, senior vice president at the Bank of Travelers Rest, said local banks can be more “nimble.”
“We’re all banks,” he said. “The differentiator between us and other institutions, especially those who are larger, is that we know our communities. Our decision-makers are part of those communities and that really is what sets us above.”
Since the leadership and team are local, Wall said, the connections can be deeper because they live where their customers live.
Intergenerational connections
For Greenville Federal Credit Union the connection can be even deeper. After all, credit unions are member-owned, not-for-profit groups.
“Folks like to come to a credit union because of that local feel and that local connection but also because we are not-for-profit, we put any money back into lowering our rates for our members, giving better, higher deposit rates and fewer fees, in general,” said Catherine James, senior vice president of marketing and brand strategy at Greenville Federal Credit Union.
And, the connections can be generational.
Rains said that customers have come in and told them that CBL helped their grandparents and their parents build their homes. “It just becomes about relationships and really still sitting across the table and getting to know each other,” she said.
Local financial institutions also tend to have a history in their communities. Founded in 1907, CBL has been in Greer for over 110 years. It’s been around for every major economic downturn from the Great Depression to the Great Recession and now, COVID-19. That also holds true for Greenville Federal Credit Union and Bank of Travelers Rest. The latter was started in 1946 by nine community members. It now has more than $1 billion in assets. Greenville Federal Credit Union began in 1968 to support teachers before opening to the community in 2001.
Grassroots philanthropy
The community connection also leads to philanthropy.
“We have a foundation [and] we do a lot of grants in the community so a lot of the things that we do on top of lending and savings we are pouring right back into our community — so the money that comes in also goes out,” Rains said, citing examples from donations to local soup kitchens to a recent donation to the Greer Police Department’s program that buys toys for underprivileged children.
James said that, since Greenville Federal Credit Union began as a credit union for teachers, it still donates heavily to education. It will also give away $50,000 in grants this November to Greenville County nonprofit organizations.
While these groups have been around for a while, local banks still have the same technology you’ll find in larger ones. CBL, Greenville Federal Credit Union and Bank of Travelers Rest said they have the same ATM opportunities and online banking as the big banks.
“We’re just like [our customers], and so able to understand their needs based on what’s happening locally, ” said Wall.
