Business View Magazine | November 2020

99 BUSINESS VIEW MAGAZINE NOVEMBER 2020 respective community cannot be overstated because they serve, in many cases, as the ONLY provider of affordable banking services and credit. So, what makes a community bank a community bank? Good question because many financial services providers attempt to brand themselves as community banks when they really are not. A recent example is illustrated by none other than Wells Fargo – one of the largest financial institutions in the world. The recent penalty levied against the bank was for their fraudulent account opening scheme aimed at increasing the bank’s cross-selling statistics. The bank’s “Community Banking” division was cited as the culprit and the institution was forced to pay a penalty of $3 billion dollars. Clearly, Wells Fargo is not a community bank, nor do they have a real community banking division. Additionally, opening fraudulent accounts is not something community banks do. Large institutions like Wells Fargo and other financial services providers like to brand themselves as community banks because community banks have a well-deserved reputation for honesty and integrity. So, how can you be sure your bank is a community bank? Here are a few helpful tips: • Most community banks are locally owned and operated. The bank’s owners, management, and employees are active in their local communities and support many important events and charities. They are your friends and neighbors. Often times if you have a question or a special need, you can actually interact with the President of the bank. • Community banks make their credit decisions locally or regionally and are making most of the community’s small business loans. Large banks make their credit decisions in various parts of the country and rarely have direct knowledge of local markets. Additionally, the deposits you place in your local bank are going to make loans to your friends, neighbors, and the small businesses you frequent every day. If this sounds a lot like the Bailey Building and Loan from “It’s a Wonderful Life,” you would be correct. COMMUNI TY BANKERS ASSOC I AT ION OF GEORGI A (CBA) John McNair, President & CEO, Community Bankers Association of Georgia