Not All Commercial Banks Are Created Equal
April 18, 2021
Choosing a commercial bank is a difficult decision and one that requires careful consideration. While retail banks are a dime a dozen, commercial banks have drastically different offerings that should be carefully considered before making your choice.
A commercial bank will be instrumental to the future of your business. They’ll help you grow your money, manage your finances as your cash needs change, and invest in the future of your organization. If you’re considering a new commercial banking partner, there are a few factors to consider.
Your Banking Needs
Every business is different, and the bank that you choose will depend heavily on the specific needs of your business. Consider factors like:
- Number of transactions: commercial banks often impose caps on the amount of money you can move in a given time period or delays on large transfers that can hold you up in case of an urgent purchase. You might also encounter fees associated with big transactions.
- Transaction amounts: as with the total number of transactions your business conducts, the size of those transactions will make a difference. When you talk to commercial bank prospects, make sure to ask about the exact numbers involved.
- Rates and fees: every bank imposes a different set of fees and interest rates. They might impose fees for balances below a certain threshold, service fees, maintenance fees, or fees for writing business checks. You should also compare rates on CDs, savings accounts, checking accounts, and any other investments you might use.
- Loan options: you don’t have to get your loans from the same bank where you keep your money, but there are often significant advantages to doing so. If you think you’ll need loans in the short- or medium-term, it’s worth examining the loan offerings at the bank you’ll be using.
Your Banking Relationship
The level of involvement is another key consideration when choosing a commercial banking partner. Some clients prefer a set-and-forget banking relationship with their bank, depositing their money at the end of each billing period and otherwise not really thinking about it. Others want to be much more hands-on, directing investments and getting regular advice about how to allocate their money.
Speaking very broadly, large banks have enormous resources to help you with your financial plans, but generally don’t have the human resources to build a dedicated, personal relationship with each of their clients. Smaller banks often have the means for a more personalized relationship, but may not have the same financial resources that the bigger companies can offer. You’ll need to ensure that the bank you partner with can give you both the financial and professional relationship you have in mind.
What Sets First Western Trust Bank Apart
At First Western Bank, we take pride in our ConnectView system, which examines wealth from all angles to ensure that your short- and long-term financial goals are addressed with a plan that’s as unique as your company. To help your business, we offer:
- Competitive Earnings Credit Rate (ECR) — sometimes, it makes sense to leave large amounts of cash in non-interest-bearing accounts, but that doesn’t mean that those balances can’t help you. With high ECRs applied as a credit toward future services, you can ensure that your idle funds are still contributing to your business.
- More personal service — while some banks force you to navigate an automated phone tree to get the answers to your questions, First Western doesn’t even employ a call center. When you need help, you’ll be put straight through to your Relationship Banker.
- Better connection between personal and business banking — though it’s important to keep your personal and commercial accounts distinct, they’re inevitably going to be intertwined. We can help you navigate the intricacies of this relationship.
For a commercial banking solution with the financial resources of a large institution and the personal care of a boutique bank, look no further than First Western Trust Bank. We’re dedicated to our comprehensive, holistic approach to banking, crafting every client’s financial plan and banking strategy from scratch. If you’re ready to work with a commercial bank that understands the unique needs and values of your business, contact First Western today!