4 Major Myths About Banking

If you listen to the news about banking these days, be it on TV, in the paper or from the radio drive-time talk shows, it’s mostly doom with a heavy sprinkling of gloom just for good measure:

* “Banks aren’t lending money anymore!”

* “You’re just a number at those banks anyway!”

* “Online banking isn’t safe; they’ll steal your identity or sell your personal information!”

So many myths about modern banking abound that one bank president has decided to clear the air by debunking the four major myths of banking during lean times. Or, for that matter, anytime at all. According to Robert Sumner, CEO of First National Bank of Pasco (FNB Pasco) near Tampa, Florida, “Banks do have money to lend; in fact, we’re lending every day.”

Sumner adds, “All banks aren’t created equal. Maybe some of the big banks are in trouble, but try a small community bank and you’ll realize that we operate under a much less stringent set of rules. In fact, not only do we make our own rules but we get to call the shots as well.” If you’ve been fearful of approaching one of your local community banks for a loan recently, or have doubts about their safety or security, let Mr. Sumner dispel the four following myths for your convenience:

Myth # 1 – Banks Aren’t Lending Money Anymore: Some of the bigger chain banks, gridlocked with federal red tape or their own corporate lending policies, have cut back on personal and even professional lending as they “restructure.” However, many small community banks are actively taking loan applications and eager to help those customers seeking reasonable personal or professional loans for a variety of reasons.

• Myth # 2 – Bankers Don’t Get Personal with Customers: Community banks are famous for personal customer service. Why? Because they are part of the community. While bigger banks deal in quantity over quality, smaller banks have more time, energy and staff to keep their customers happy.

• Myth # 3 – Banks Have Unlimited Money to Spend: No bank, big or small, has unlimited money to spend. In fact, the bigger the bank, the more systems of checks and balances they have to go through in order to lend you money. A customer requesting a loan from a large chain bank in Florida might have to get approval from a regional or even headquarters office two or three states away. A small community bank can answer you on the spot.

• Myth # 3 – Online Banking Isn’t Safe: Horror stories have happened to online banking customers, big or small. However, online banking is a big customer draw for banks of any size, and they have taken special pains to make it as safe as possible, with a variety of safeguards. With a community bank, of course, the biggest safeguard is walking through the front door.

If you’ve been holding off on either personal or professional banking because of unreasonable fears or mass media hysteria, don’t delay; visit your local community bank today.