By all accounts, the United States has more banks and credit unions than any other nation on Earth. From major urban centers to rural hamlets, 335 million Americans enjoy a range of options when shopping for car loans or personal checks.
But does diversity in the banking industry really translate to equal competition or market share?
For years, community banks and credit unions watched as accountholders flocked to massive, national and international institutions. But recently, that trend has started to shift.
What’s Driving Accountholders to Community Banks & Credit Unions? – Main Street Explores
According to a recent report from Kiplinger, community banks and credit unions are seeing their market shares increase in specific sectors. Together with other unique offerings, these sectors represent a tremendous opportunity for community institutions.
Here’s why consumers are staying closer to home when shopping for financial services, loans, and even business checks.
Primary Credit Cards
It’s not hard to find a lender in the internet age. Through snail mail, email, and digital ads, credit cards are pushed at consumers from every corner of modern life.
But as financial literacy increases, consumers are less willing to dive headlong into every credit card offer they see. As it turns out, we have serious concerns about our interest rates. It’s here that community banks and credit unions shine.
Kiplinger reports that community financial institutions are seeing incredible growth in primary credit cards. With interest rates coming in at eight to ten points lower than the larger competition, it’s no wonder that community banks and credit unions are carving out an edge.
Custom Solutions & Flexible Loan Offerings
When you’re the biggest game in town, you can afford to be rigid. The largest banks have headquarters far away from Main Street America where the terms of a small business loan or savings account are most impactful. As a result, most large banks employ a “take it or leave it” attitude to loan products and other services. That leaves some of us looking for alternatives.
Small businesses and private citizens are catching on to the better deals offered by their local bank or credit union. By merely speaking with accountholders about their needs, their goals, and the repayment structure that works best for them, community financial institutions are making waves.
Even in an age where consumers can shop for loans with an app, many are choosing to speak with a hometown specialist.
Industry Leading Service
The convenience of a chatbot is undeniable. But when it comes to understanding a college savings plan or asking questions about complicated financial arrangements, speaking with a human being is preferable, even in the 21st century.
As a general rule, we appreciate placing a name with a face – doubly so when we’re conducting crucial financial business. Community banks and credit unions benefit from more personability than any online bank can offer. This allows local institutions to intersect with accountholders at pivotal times.
As a small local business, Main Street understands the connections community banks and credit unions foster in their communities. To deepen this bond, we offer fun, festive, and heartwarming print products for every time of year.
Our Financial Services Collection and Holiday Collection of bank-use items keeps that community spirit warm. You’ll find everything from gift envelopes to computer checks featuring seasonal scenes, Christmas greetings, and graduation well wishes.
High-Quality Check Products
There’s no denying that technology has changed the way we pay or accept payment. From simple tap-to-pay to mobile solutions (like Apple and Google Pay), modern tech has upended the consumer landscape. But even now, at the peak of the digital age, most of life’s biggest purchases are paid for with checks.
Thankfully, checks are more than just another way to pay. They’re a gateway into the world of financial services, especially for community banks and credit unions.
Parents still bring their teenagers into local branches to open up their first checking account. They deposit funds earned through chores and receive their first checkbook. It’s a rite of passage unlike any other.
At Main Street, we know how much checks mean to modern accountholders. That’s why we take two novel approaches to increasing both accountholder engagement and check program revenue.
Custom Checks Designed for Your Community
No two communities are exactly alike, even when they sit within 15 miles of one another. Every community has its own flavor, and check designs should reflect and celebrate that.
Since 1999, Main Street has printed and supplied high-quality checks to financial institutions nationwide. To celebrate the communities of our partners, we go the extra mile with personalized check designs.
Featuring your branding and logo, our personal and business checks are fully customizable for local high school spirit and collegiate sports. From local landmarks and natural scenes to breast cancer awareness and patriotic imagery, accountholders can choose checks that align with their values.
To promote your community based checks, Main Street provides free marketing materials, too – whatever it takes to foster engagement, delight, and hassle-free payment solutions.
Strategic Check Program Management
Compelling check designs can take a bank or credit union far, but a check program is only as good as its revenue. Unfortunately, with tight margins, revenue is far from guaranteed.
Seemingly innocent policies and practices (like paying for reprints or providing checks for free to certain accountholder groups) can have a serious impact on ROI. That’s where Main Street’s dedicated Account Managers come in.
Every Main Street partner gets their own Account Manager at no extra charge. Account Managers can:
- Analyze check orders by account type to maximize profitability and limit freebies
- Provide full visibility into check program performance
- Leverage reporting features for a comprehensive review, including year-over-year performance, branch comparisons, revenue and volume analytics, waived orders, and much more
- Make recommendations involving training, check bundles, order frequency, marketing, pricing, reprints, and more
When all is said and done, Main Street Account Managers can take check programs from the red to the black in a matter of weeks.
Flourish in Your Community with Checks & Guidance from Main Street
As a local, family owned company headquartered in Birmingham, AL, Main Street understands that your success is our success. With over 2,000 community bank and credit union partners to our name, we know how important it is to serve with local flavor and satisfy accountholders.
For custom checks, festive gift envelopes, check program guidance, and everything between and beyond, there’s Main Street. Speak with a Main Street representative today to learn what our checks or Account Managers can do for your community financial institution.
Main Street – Helping Community Banks & Credit Unions Thrive
Community banks and credit unions are vital, local institutions that perform for accountholders in a way that can’t be duplicated or replaced. Modern consumers are catching on to all that local institutions have to offer. To maximize this moment and seize opportunity, choose a check vendor and program partner that aligns with your goals and values. To learn more about what Main Street can do for you, contact us today!
Sources
Smith, Stacey Vanek. “The U.S. Has More Banks than Anywhere on Earth. That Shapes the Economy in Many Ways.” NPR, May 9, 2023. https://www.npr.org/2023/05/04/1173488958/silicon-valley-bank-signature-first-republic-bank-failures.
Feldman, Jamie. “Why More People Are Using Small Banks and Credit Unions.” Kiplinger.com, February 15, 2024. https://www.kiplinger.com/personal-finance/banking/more-people-are-using-small-banks-and-credit-unions.