Are Family-Owned Banks Better?

August 12, 2016 • Author: Salin Bank

“Families like doing business with other families,” says David Bain in Family Capital, an online magazine for family businesses. The question Bain poses, though, is “Do they like banking with family-run banks?”

When family businesses do business with family-owned banks, Bain explains, there’s a cultural fit, along with a joint commitment to long-term commercial objectives. For the most part, he adds, family run banks have been around for a long, long time.  “That longevity of service builds trust with customers.” In fact, family run institutions benefitted from the post-financial crisis loss of confidence in big institutions, Bain observes. And, while family-run banks may not have the balance sheets to provide services demanded by large business entities, “there’s plenty of business to go around for them to satisfy their needs.”
 
Sammy Said, who writes a blog called “The Richest”, explains that privately owned banks are not incorporated institutions, and are usually owned by an individual or a group of general partners.
 
They don’t only offer banking services, they are also active in their respective communities.
 
Salin Bank, as a “family-owned, community bank with values and beliefs that come from the Salin family philosophy of improving the communities where our clients live and work”, fits Said’s description to a T.
 
Unlike larger banks, whose priority may be serving the needs of big corporations, Salin’s priority is serving individual and small business needs right here in central Indiana.   
 
“There’s apparently a great private banking myth out there, according to British journalist Merryn Somerset Webb. Most people would switch to private banking but think that they don’t have the money. It may have been true in the past, Webb admits, that private banking was about giving the very rich a very personal service, but it’s certainly not true today.

It seems there may be a second area of confusion relating to the difference between the terms “private banking” and “private bank. Private banking usually refers to a suite of financial and banking services offered to a bank's high net worth customers, while private bank refers to the ownership of the institution..

At Salin, a family-owned, Indiana community bank, with all banking centers based only in Indiana, we’re definitely a private bank.
 
But when it comes to our services, rather than calling our very private and individualized services “private banking”, we prefer the term “personal banking”, with financial solutions designed for each customer’s business and personal needs.
 
Banking really can be better “in the family way”!