Fresh Cup Magazine, providing specialty coffee and tea professionals with unique insight into the trends, ideas, products and people that shape their world.
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THINKING BIG The main advantages of the large bank approach are the availability of branches and the reliable, Web-based access to all your accounts. Larger banks tend to have multiple branches in many towns and cities as well as in locales across the country. Therefore, you'll be able to easily pop in for face-to-face service regardless of whether you're in your business neighborhood, your home neighborhood or somewhere in between. You'll also likely have extensive access to fee-free ATMs. In addition, if you relocate your business or expand to another area, you may not have to transfer bank accounts and account numbers if the bank has a branch in your new home. The growth pat- terns and deep pock- ets of big players also can be beneficial for the people who work for the banks them- selves. For better or worse, big banks have the capability to pay employees more and often provide better benefits. This can lead to a talented team of people who can offer you the best advice and ser- vices possible and also ensure stabil- ity. It's possible that your contact will be with the institution for years and years, which is key to the development of your relationship. Those same points, though, can lead to the negative side of big banks. The size and professional development opportunities within big banks can mean that tellers and other employees will be promoted to other branches or corporate positions just as you have begun to trust them. Also, bigger banks have large depart- ments and customer service representatives who handle many issues, sometimes from all over the country. You're unlikely to always get the personal attention you crave. Another disadvantage is that there are typically far more fees associated with bigger banks and their practices than you will find in smaller banks. LOAN RANGERS With a smaller bank, the most obvious plusses are that you get genuine personal attention and a stronger connection with the bank employees. For people in specialty coffee and tea, many of whom thrive by interacting and befriending those they see every day, this is a huge draw. But from a purely business perspective, a small bank's biggest asset comes in the areas of loans. In the smaller setting, you will be able to get much more assistance with loans than you probably would from their larger counterparts. When dealing with an institution that has only one or two branches, it is not uncommon to speak directly with the person in charge of approving a loan; at Bank of America or Wells Fargo, you would never have access to someone in that executive capacity. In addition, smaller banks are more apt to work with their customers who are having financial trouble, especially in cases with over- drawn accounts, account mistakes, etc. And just as people have become more excited about co-ops and shopping local, it can simply feel good to be part of member-owned credit unions and banks. The money you put in is being invested and redistributed locally. Small banks have their downsides as well, of course. Typically, they offer fewer Internet-based services. You also may run into complications and deposit headaches if your shop opens locations that are miles away from the bank hub. And small banks usu- ally have fewer ATMs, which means paying extra fees for using another bank's machine. Finally, while there may be a growing desire to make banking local, there continue to be fewer and fewer community-oriented banks in business. Many smaller banks get purchased by larger ones, and that trend has been heightened by the last several continued on page 29 freshcup.com January 2012 27