National vs Local: Best Bank for Your Business

When choosing a bank for your small business, it’s important to carefully weigh your options.

When choosing a financial institution for your small business, consider several questions. Would the bank’s locations be convenient for you? Does it offer the products, services, and competitive rates necessary to run your business? And perhaps most importantly, is it capable of supporting of supporting your small business as it grows?

National Banks vs. Local Banks

As you weigh your options, you’ll likely face another important question: Should I bank with a national bank or a community bank? After all, both have their benefits.

National megabanks often provide added convenience thanks to a wider network of ATMs and branch locations. And while the vast majority of financial institutions now offer online banking, community banks may sometimes lag behind megabanks when it comes to innovative digital banking tools.

On the flip side, community banks offer something many megabanks struggle to provide: personalized service and support. For entrepreneurs working hard to grow their small business, an individualized level of guidance can prove to be invaluable.

All small business owner will have their own unique needs and requirements, and when deciding on a bank, some find that regional banks offer the best of both worlds.

The Benefits of a Regional Bank

Products and convenience

Most small business owners will establish a banking relationship once the need for a separate business bank account arises. The majority of regional banks offer access to a wide array of small business banking products, and like their national counterparts, most offer competitive rates on savings accounts and loans. Business owners interested in a Small Business Administration (SBA) loan should consider seeking out an institution with SBA Preferred Lender status — a designation that provides several key benefits to borrowers.

For small business owners, convenience can also be an important factor. Like their national counterparts, most regional banks offer convenient access to a large network of ATMs and branch locations, and many provide an innovative array of online and mobile banking tools designed to make managing small business finances easy and convenient.

Personalized support

The differences between national banks and local banks emerge when you look at customer experience. Most regional banks are well equipped to offer a high-touch level of support that can be difficult to find at many megabanks. And, like local banks, many are often historically rooted in their communities — allowing them to build lasting relationships while offering a more collaborative approach to client management.

Local knowledge and community investment

Regional banks can offer tailored advice and financial wisdom in a cookie-cutter world. Like community banks, regional institutions often possess a critical understanding of the local economy’s commercial history, the community’s values and behaviors, and how businesses grow and operate in the area.

Beyond simply supporting you as a business customer, regional banks often support the growth of their local community. Large regional banks can often have a positive impact on state economies and support job creation in their areas. Many regional institutions contribute to charities in their community through corporate donations, associate monetary donations, and associate volunteerism. During the pandemic, both small and regional banks were well-positioned to move quickly in order to provide support to small businesses.

Choosing the Right Bank

Although each business has its own set of needs, regional banks can provide small business owners a happy medium that reflects the best that both national banks and community banks have to offer.

Learn more about how Regions Bank might be the right financial institution for your small business banking needs at


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