The big banks tout their large branch networks, huge resources and competitive rates. The small banks offer a personal touch and the appeal of keeping your money in the community. But for a small business, which is really best to meet its needs: big or small?
For both sides, there’s a lot at stake in winning small businesses over: Rhode Island’s economy is dominated by small companies; nearly 90 percent of the state’s employers as of last year had 20 or fewer workers, according to state figures.
Those who choose smaller banks often feel very strongly about their decision.
Ken Topalian, second-generation owner of Regal Car Care and Collision in Pawtucket, said he shopped around and visited two of the big banks in the state before finding his match at Cranston-based Domestic Bank, which has only nine branches.
“At the larger bank I felt like all I was, was a number,” he said. “We were passed from one department to another, and by the time I got a chance to sit with someone, I was already into three weeks of meeting with Domestic.”
Domestic, he added, “took a better interest in what I was doing, where we were going and what we wanted to do, and as a small business owner, I appreciate that.”
Craig Baker, executive vice president of Domestic Bank, said personalized attention is a key part of the bank’s approach. “We don’t try to fit our customers like square pegs and try to fit them into small round holes,” he said. “We make sure we fit their individual needs.”
Domestic also compensates for the size of its branch network by offering extended hours.
“We are trying to make ourselves Rhode Island’s and southern New England’s most convenient bank, and eight of our nine branches are open seven days a week and most nights until 7 p.m.,” Baker said.
Bank Rhode Island, the state’s second-largest independent bank, after The Washington Trust Co., also tries to give businesses the best of both worlds, with a “high-touch” approach to service and strong local ties, but also conveniences such as Saturday and Sunday hours.
James R. DeRentis, chief business officer, said BankRI’s goal is to be a partner to small business owners, helping them succeed.
“Our focus is to provide locally managed, locally focused service to small businesses in the state of Rhode Island,” DeRentis said. “We have a vested interest in the success of the business in the community of Rhode Island, and our name says it all.”
But you’ll hear a very similar message if you talk with Citizens Bank, which has more than 1,600 branches in 13 states and $161 billion in assets and, as of last Sept. 30, was the nation’s eighth-largest commercial bank by deposits.
And Citizens, which has a 43-percent deposit market share in Rhode Island, works with plenty of small businesses: It’s been the top U.S. Small Business Administration-backed lender in the state since 1995 when ranked by number of loans (last year, Coastway Credit Union was the top lender by dollar amount).
But Joseph J. MarcAurele, chairman, president and CEO of Citizens Bank of Rhode Island, is aware of the competition out there.
“We have to be very vigilant,” he said. “We live in a high-touch customer service world in financial services.” So Citizens polls customers frequently, he said, and customers “are not shy. They give you feedback in what you do well and poorly.”
Bank of America, which is the top SBA lender in the nation and, with more than 5,700 branches and 56 million consumer and small-business customers, is one of the largest banks in the world, also works to provide personalized service to business customers, with designated business bankers who will work to set up packages for companies of any size.
But the bank also appeals to customers with its vast resources, such as its extensive online banking services – including a free online payroll system for small employers. And it appeals to its customers’ ambitions; today they may be small, but what’s their goal?
“There are many small businesses in this community that want to be larger,” said William F. Hatfield, Rhode Island market president. “There are small businesses that want to be big businesses, and there are many that want to be a global business. We at Bank of America are positioned to help those businesses handle those goals, and we can provide that full comprehensive value that they cannot achieve elsewhere.”
