A community trust bank is a type of bank that has its operation in a local area. This type of financial institution is typically owned by someone from the local community who is among the residents of the area. The way it works is pretty simple. There may be a resident who wants to run a business locally. He or she may require funds for it. The community trust bank will provide the funds to that person. But the funds are not just given for the business purposes. If the local family has some personal financial issues, they can also contact the bank.
Community trust bank works on a rather personal note. The people who run the bank are also those who know the area and the residents well. They are personally aware of the local families and businesses. The decision whether the money is to be given to someone or not is more or less the subjective discretion of the bank owner or owners. All in all, it means that this type of bank runs locally and serves locally.
Community trust bank does have its impact on the economy of the country as well. The local people trust these banks and hence they find it a safe haven to save their money. They also sometimes prove to be the only source of funds for the locally operated businesses. Many experts say that the community banks such as the community trust bank Surrey is more reliable when it comes to funding the local business as compared to the larger financial institutions.
The bigger banks have a number of clients to cater to across the country and sometimes even internationally. Although they have the local branches but their employees may not necessarily be from the local community. In fact, they hardly have any local employees. Most of the recruitments for these banks happen centrally. This means that they do not have the pulse of the local people, businesses, and the residents. Things are different with the community trust banks. The employee is from the same area and thus evaluating risks and benefits becomes much easier.
The client-bank relationship is also on the different level with the community trust banks. Since everyone knows everyone, therefore there is always some personal touch to the interactions and even transactions. The credibility of a person is often the matter of subjective inclinations. This is why, even if you have a poor credit rating, you can still get the funds from these banks if you are trusted in the community.
The community banks have their own challenges as well. A larger financial institution will not give out the money to someone who does not have a good credit. But with community banks the transactions are always over the personal trusts. Even if the risk factor is high, the transaction may still happen. This may result in some serious losses. Also, the community bank employees are not often as well trained as the large banks. This is why they may not be able to completely grasp the in and outs of banking.