Recently we shared Community Business Bank president John DiMichele’s comments about the role of credit unions in the Bank Transfer Day event.
During our conversation with DiMichele he mentioned that business owners may very well want to show their disapproval about the ‘big banks’, but have more tie-ins that make quickly pulling up stakes very difficult. “They may have multi-signatures on their accounts and business processes such as ACH transactions (direct deposit and electronic bill payment) that cannot be quickly transferred over.” he says.
Look for a good (financial) match
Business owners need to do their due diligence when searching for an alternate bank relationship, Di Michele stresses. “They need to find a bank that’s a good match for their needs. It’s essentially asking the question – Can this bank give me what I need? Will it give me an unsecured line of credit? Can they advance me a $5M line of credit (or is their maximum $2M)?
Bye bye relationships
Should a business owner want to make the move, he should consider community banks, says DiMichele. These banks share many characteristics of a small business: “Community Business Bank (serving the greater Yolo, Solano, Sacramento, Placer, San Joaquin and contiguous counties) is really a small business itself. We are controlled by shareholders and have to raise capital. The crux of our business model is building and keeping great relationships with our customers.”
DiMichele explains that the large national banks have basically abandoned this relationship model in favor of a commodity approach where they push a wide variety products. “We, on the other hand, have kept our focus on pleasing our clients and supporting our local communities.”
“In fact, says DiMichele, “the other day one of my clients called and asked me to critique his business plan. Now who could you ask at a national bank to do just that?”
For more information:
Community Business Bank’s Solano county branch office is located in Vacaville:
750 Mason Street Suite 105, Vacaville, CA 95688, Phone: 707-448-2307
Interested in learning more about the pending federal legislation, HR 1697, that proposes to ease some community bank regulatory restrictions? This posting’s featured video is C-Span coverage of the hearings. It lasts about two hours.