What is Community Banking?

Community banking is a system of banking that caters to local communities. This usually involves one or a few local banks providing services to customers in their immediate areas. The idea is that local banks better understand the needs and circumstances of the people in their local area, and therefore can provide better services.

Who Does Community Banking Really Help?

The most obvious beneficiaries of community banking are local businesses, entrepreneurs and families. These are the people who rely on local banks for credit and other financial support to help them get ahead.

Here are some of the specific ways local banks can benefit local communities:

  • Accessible Banking Services: Local businesses, entrepreneurs and families can more easily access banking services through local banks. This allows them to open accounts, get loans and access other financial services, giving them the tools they need to thrive.
  • Increased Financial Literacy: Local banks can help people become more financially literate. Banks in communities can provide resources and classes that teach people about basic financial topics.
  • Community Investment: Community banks often support local charities and events, providing a much needed boost to the community.


The positive impact of community banking is clear. It can help create opportunities for local businesses, entrepreneurs and families. It provides resources to increase financial literacy, and supports the local community through charitable giving. Regardless of the size of the bank, community banking is a vital part of strengthening local economies.

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