The United States banks, credit unions and other financial institutions has over 5,281 local banks in USA and national banks with 83,000 branches in 10189 cities offering banking services.
What Is A Local Bank And Their Role ?
According To Pocketsense, The role of a local banks in states is to function as a commercial bank within the community environment that it represents.
A local bank accepts deposits, makes loans and offers other products and services such as trust accounts, credit cards, payment transactions and the issuance of lines of credit.
However, the primary objective of the local banks in USA is to enhance the community that it resides within.
Local Banks In USA And Their Services.
The word local bank actually refers to the more commonly used term of community bank.
These types of local banks in USA deals with smaller merchants and local residents who are looking to have a more personal relationship with their bank.
As it concerns lending, the local bank concentrates upon a diverse base of mortgage loans, heloc loans, auto loans, home improvement loans, small business type loans and construction loans.
Community or local banks in USA must also engage in CRA loans which are mandated by the Community Reinvestment Act for purposes of improving the community with loans related to such issues as low cost housing and health facilities.
• Checking Account
Local banks in USA offer a wide array of checking accounts including non interest bearing and interest bearing accounts such as NOW accounts and Money Market Demand Deposit Accounts.
Since some local banks in USA must compete with large money center banks for deposits, these types of banks attempt to offer better service and accommodations in United States.
• Time Deposit
Local banks must also compete with large banks in order to attract time deposit money in the form of certificates of deposit and savings accounts.
In many cases, the local banks in USA must pay higher interest rates in order to establish new relationships.
• Other Products
All local, regional and large banks in USA attempt to offer a full range of products and services that tend to attract and retain customers.
Some list of Local banks in USA have the added pressure of trying to keep up with the technological changes that are constantly taking place within their industry in order to remain competitive.
Therefore, some local banks often outsource their back office functions to service companies for the handling of such issues as payroll and check processing.
In other cases, they piggy back their products and services with larger banks or they pool their resources.
In any event, local banks in USA offer many of the same products as large banks such as letters of credit, foreign exchange, trust services, money management and investments.
The advantage that local banks have over larger banks in USA is their involvement within the community.
Furthermore, local banks attempt to provide superior and personalized service to each and every client.
• Build Relationship
The Best Local banks in USA must build relationships with their customers as opposed to large transactional volumes.
Since local banks tend to be small in size, large accounts that process volumes of checks or cash are not profitable to a small bank operation.
However, the consistent building of deposits, lending and banking services with individuals and community entrepreneurs basically defines the role of the local bank. The quality over volume scenario serves the local bank and the smaller bank customer.
How Many Local Banks Do We Have In USA?
The United States has over 5,281 local banks in USA and national banks with 83,000 branches in 10189 cities offering banking services.
Top 10 List Of Largest And Local Banks In USA.
We have researched a handful list of largest bank in the world and also some of the best local banks in USA 2021.
1. JPMorgan Chase Bank
Chase Bank is an American national Bank, its headquarters is located in Manhattan, New York City. The bank comprises consumer and commercial banking subsidiary of the US multinational banking and financial service holding company, JP Morgan Chase.
Ranked in the top 5 as one of the largest banks in the world and most attractive employer by business students.
2. Bank Of America
The Bank of America Corporation (simply referred to as Bank of America, often abbreviated as BofA or BoA) is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina.
The bank was founded in San Francisco, and took its present form when Nations Bank of Charlotte acquired it in 1998.
It is the second largest banking institution in the United States, after JPMorgan Chase, and the eighth largest bank in the world.
Bank of America is one of the Big Four banking institutions of the United States. It serves approximately 10.73% of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup and Wells Fargo.
Its primary financial services revolve around commercial banking, wealth management, and investment banking.
Citigroup Inc. or Citi (stylized as citi) is an American multinational investment national local bank and financial services corporation headquartered in New York City.
The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002.
Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citigroup is incorporated in Delaware.
4. WellsFargo Bank
Wells Fargo & Company is an American USA multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and internationally.
The company has operations in 35 countries with over 70 million customers globally. It is considered a systemically important financial institution by the Financial Stability Board.
5. Goldman Sachs Bank
The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City.
It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting.
It also provides investment banking to institutional investors and regarded as also one of the best largest local banks in USA.
6. Morgan Stanley Bank
Morgan Stanley Bank is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City. With offices in more than 42 countries and more than 60,000 employees, the firm’s clients include corporations, governments, institutions, and individuals.
Morgan Stanley ranked No. 67 in the 2018 Fortune 500 list of the largest local banks in United States corporations by total revenue.
7. PNC Bank In USA
PNC Financial Services Group, Inc. (stylized as PNC) is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania.
Its banking subsidiary, PNC Bank, operates in 27 states and the District of Columbia, with 2,945 branches and 9,051 ATMs.
The company also provides financial services such as asset management, wealth management, estate planning, loan servicing, and information processing.
7. U.S Bancorp
U.S. Bancorp (stylized as us bancorp) is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware.
It is the parent company of U.S. Bank National Association, and is the fifth largest banking institution in the United States.
The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
It has 3,106 branches and 4,842 automated teller machines, primarily in the Western and Midwestern United States.
It is ranked 117th on the Fortune 500, and it is considered a systemically important bank by the Financial Stability Board.
The company also owns Elavon, a processor of credit card transactions for merchants, and Elan Financial Services, a credit card issuer that issues credit card products on behalf of small credit unions and banks across the U.S.
8. The Third Charles Schwab Bank
The Charles Schwab Corporation is an American multinational financial services company.
It offers local banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
It has over 360 branches, primarily in financial centers in the United States and the United Kingdom.
It is the 13th largest banking institution in the United States with over US$6.6 trillion in client assets.
It is the third largest asset manager in the world, behind BlackRock and Vanguard. It had 29.0 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.5 million banking accounts, and $7.57 trillion in client assets as of July 16, 2021.
It was founded in San Francisco, California and is headquartered in Westlake, Texas.
9. Trust Finance Bank
Finance Trust Bank (FTB), commonly called Finance Trust, is a commercial local bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator.
10. TD Local Bank
TD Bank, N.A., is an American national bank and subsidiary of the Canadian multinational Toronto-Dominion Bank.
It operates primarily across the East Coast, in fifteen U.S. states and Washington, D.C. TD Bank is the seventh-largest U.S. bank by deposits and the 9th largest local bank in the United States by total assets, resulting from many mergers and acquisitions. T.D. Bank, N.A. is headquartered in Cherry Hill, New Jersey.
Wrapping Up On List Of Local Banks In USA.
The above banks listed is one of the best and largest banks in USA that you can bank with easily if you reside in USA.
Choose from any of the local banks and get started in 2021…..