When looking for a bank, clients often find themselves torn between the technological advantages of large institutions and the localized service offered by smaller community banks. However, there is a happy middle ground where clients can benefit from both – mid-sized, regional banks. These banks, such as Valley, occupy a unique position in the financial landscape, offering real and personalized solutions that cater to the specific needs of their clients, while providing access to advanced tech that will carry their growth. Here’s why mid-sized, regional banks hold a distinct advantage in today’s fast-paced economy.
Mid-sized, Regional Banks are “Just Right”
Large banks offer cutting-edge technological solutions, but they often fall short when it comes to providing personalized attention to their clients. On the other hand, while community banks excel in understanding the local economy, they may lack the scalability required to grow with their clients. This is where regional banks shine. They strike a desirable balance between advanced technology and dedicated service, offering clients the best of both worlds.
A Safe Harbor During the Storm
Access to local decision-makers who understand both lending and deposits is crucial for businesses, especially during uncertain times. This was particularly evident during the Paycheck Protection Program (PPP), which was administered by the Small Business Administration (SBA) with support from the U.S. Department of Treasury, to offset the financial impact brought on by the COVID-19 pandemic. According to a report by the Federal Deposit Insurance Corporation (FDIC), community banks reported a much larger total loan growth and commercial & industrial (C&I) loan growth than the industry overall in the second quarter of 2020, holding 29 percent of loans. It’s this in-depth understanding of local markets that leads to invaluable on-the-ground knowledge for clients – and support during times of economic distress. This insight helps inform strategic decisions and fuel growth, offering stability in an otherwise volatile environment. Unlike larger institutions that may lack detailed attention or smaller banks with limited capabilities, regional banks are reliable partners, guiding clients through economic fluctuations with expertise and care. It’s like ‘phone-a-friend’ option for financial needs.
Offering Tailored Solutions
Moreover, regional banks offer a compelling solution for clients with limited collateral. Unlike larger banks that rely on standardized systems, regional banks can better recognize the unique nuances of each client. For example, the influx of tech companies in areas like St. Petersburg, FL, requires a banking partner willing to think outside the box. These companies may not fit the traditional collateral-based model, so they need a banking partner that isn’t put off by their lack of collateral and that’s able to help them secure loans and financing outside of the traditional method. It’s this type of innovative thinking that mid-sized banks do best, as there’s a strong understanding that some client needs are different than that of clients in other industries.
Fostering Economic Growth
In addition to their role as financial partners, mid-sized regional banks like Valley also play a vital role in fostering local economic development. By investing in our communities and building strong relationships with local businesses, we can contribute to sustainable growth and prosperity. Valley’s commitment to understanding the unique needs of the regions we serve helps us act as trusted advisors, guiding clients through challenges and opportunities alike. Mid-sized regional banks not only provide financial services but also serve as pillars of support for the communities they call home.
Mid-sized regional banks like Valley Bank are the best choice for middle market clients seeking a blend of personalized service and advanced solutions. As businesses navigate uncertain terrain, having a reliable banking partner like Valley Bank by their side can make all the difference in achieving long-term success and resilience.
Visit Valley.com or contact us today to explore how we can help support your business and your community.
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