There is a new mantra in money management, and it’s “Move Your Money.” Arizona businesses and individuals are joining the trend in transferring their savings and financing to locally headquartered banks and institutions that are rooted in the local community.
According to the most recent Federal Deposit Insurance Corporation (FDIC) Summary of Deposits (source), the share of deposits held by independent banks chartered in Arizona rose from 5.84% to 7.21% from June 2015 to June 2016. This 23.4% increase signals that Arizonans are more aware of the benefits of banking locally and thoughtful about where they are choosing to keep their money.
The three largest banks, JPMorgan Chase, Wells Fargo, and Bank of America, control 69.57% of Arizona deposits, down from 70.38% last year.
There are likely multiple factors that explain the increase in local market share of deposits, but one sure factor has been Local First Arizona’s consistent promotion of utilizing local banks and credit unions. “When your money is deposited in locally owned and operated community banks and credit unions, it's quickly recycled back into our local economy,” says Kimber Lanning, Founder and Executive Director of Local First Arizona. “For example, according to the Institute for Local Self-Reliance, although small and mid-sized banks control less than one-quarter of all bank assets, they account for more than half of all small business lending (source). We’re now seeing that more and more people are taking action to move their money from big banks to local banks to facilitate this kind of local economic impact in their communities.”
Many business owners and individuals are also saying that they’re moving their money to local banks because of the connection they have to the community. “This is the community where we’ve chosen to raise our children and we want them to have a strong local economy for generations to come,” said Kevin Danzeisen of Danzeisen Dairy, who banks with Pinnacle Bank. “These values are shared by Pinnacle Bank and we’re thankful for the opportunity they’ve given us to strengthen our presence in this community.”
This news coincides with Local First Arizona’s celebration of Community Banking Month in April, a national campaign to promote the benefits of banking with community banks. Local First Arizona has developed a resource page on their website to help connect individuals and business owners move their money to the right financial institution.
Local First Arizona is also celebrating Community Banking Month with several events in the Phoenix area:
For more information on the impacts of banking locally and Community Banking Month, visit https://www.localfirstaz.com/banking.