**Philadelphia**: Community banks like Finanta Credit Union and QNB Bank are prioritising personal relationships with clients to navigate today’s business challenges, offering tailored financial services and advice to support small business growth in a rapidly changing economic landscape.
In the evolving landscape of business banking, local community banks and credit unions are increasingly focusing on personal relationships to support their clients’ business goals. These institutions, which include Finanta Credit Union and QNB Bank, are leveraging their proximity and familiarity to tailor services that meet the unique needs of small business owners.
Alba Fernandez, senior vice president and director of lending at Finanta Credit Union—formerly known as Community First Fund—highlighted the significance of maintaining strong banking relationships. “In general, having a [banking] relationship is crucial for any business owner. They have to be able to select the correct bank for them,” she remarked. Finanta operates multiple offices across Pennsylvania, including in Allentown, Harrisburg, Lancaster, Reading, and York, offering a variety of services aimed at both consumer and commercial clients.
The community banking model emphasises personal interactions, providing advantages such as in-person consultations for loan applications and business expansion advice. Scott G. Orzehoski, executive vice president and chief lending officer at QNB Bank, based in Quakertown, Bucks County, reinforced this notion, stating, “When you bank with a community bank, it’s about the familiarity and the relationship.” Orzehoski noted that regular meetings with clients foster an engaged dynamic that benefits business strategies and growth.
Both institutions have acknowledged the role of community banks in creating a supportive environment for business owners. Finanta, as a Community Development Financial Institution (CDFI), aims to serve underserved sectors, enhancing access to financial tools and providing guidance. Fernandez expressed, “The unique part of CDFI includes guidance, education, access to key partners so business owners have the tools and knowledge to make financial decisions that will affect their business and its future.”
During the pandemic, QNB Bank adapted quickly to fit client needs and respond to changes in treasury programs, demonstrating the importance of agility in the business banking sector. “We have the expertise in-house,” said Orzehoski, indicating a comprehensive, team-oriented approach to client service that extends beyond financing to everyday banking tasks.
Commercial customers face a myriad of financial needs from expansion to routine cost management. In this context, Fernandez noted that businesses often seek advice alongside financial assistance. “They come to us for advice to help them make those decisions,” she explained. So, collaboration with partners who provide specialized knowledge—such as financial management education or grant opportunities—is integral to business support at Finanta.
The conversation around client needs is ongoing; rather than a binary yes/no process for loan requests, Finanta approaches each situation holistically. “We can craft the capital they need. We’re not just giving the capital, we’re trying to understand and be a partner,” Fernandez added. This method helps clients transition their business models to adapt to changing economic climates—such as moving to e-commerce or exploring new avenues for growth.
Moreover, community banks are extending their services beyond traditional banking. QNB Bank and Finanta provide personal financial services like mortgages and retirement investment accounts, acknowledging that business owners often require support for their personal financial situations as well.
As both institutions look to 2025, they anticipate emerging challenges such as supply chain issues, interest rate fluctuations, and rising insurance costs which could impact their commercial clients. “Successful partnerships must include understanding client risk,” Orzehoski pointed out, reinforcing the necessity of proactive discussions about financial strategies.
In conclusion, local community banks and credit unions are positioning themselves as comprehensive partners to small business owners, emphasising a tailored approach and strong interpersonal relationships to effectively navigate an unpredictable economic landscape. As the industry evolves, maintaining these connections will be vital for the sustained success of both the banks and their clients.
Source: Noah Wire Services
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