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For who? Local banks? Credit unions?

Why? And yes, this is a trick question.

You do know that neither your local bank nor your credit union actually process any of your accounts. The payment on your house, car, boat, or even have the money to lend you for those?

They all run them THROUGH one of the super regional or national banks. Every single one of them. Since the mid 90s.

It’s too expensive to have all your own in house servicing, collections, LDA, Underwriting, mail service, payments, processing... etc

Nope. None of the small banks or credit unions have done this in house for 15 years. It was all outsourced to “us” a long time ago.

The only difference between a big bank and a small bank or credit union, is the personal banker won’t get promoted and moved to some other part of the country in a couple years, so you will see the same person and think they know you.

They won’t give you a better rate than you’d get shopping around as a total stranger. They don’t charge less for bad checks.

They are de facto, OUR branch banks with a different logo.

And more of them fail than do the big banks. Many times over. I cannot count how many small banks we buy each week. Fire 100% of their staff, slap our logo on 1 out of ten of their buildings, and sell the rest.

That is how it is done.