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The Bank of Stronghurst Essay Contest Winners were announced on Thursday, May 13, 2004, during the high school awards ceremony at Southern High School. The contest is part of a program sponsored by Illinois Community Banks to increase public awareness of locally owned banks and their contributions to the community.
The first place winner of $250.00 was Sara Ford. The second place winner of $150.00 was Megan McCollum. The third place winner of $100.00 was Kim Waddell. These three essays were submitted to Community Banker's Association of Illinois to participate in the state contest where Megan McCollum was chosen as a semi-finalist. These three students achieved a great accomplishment.
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1st Place - by Sara Ford
Throughout history, society has always been interested and concerned with the United Statesâ economy. Whether society is thriving or going through a depression, the economy and the concept of money has always been significant to the consumer. Banks, therefore, were created to manage the finances of the growing population.
Not all banks, however, share the same qualities when it comes to their methods of dealing with customers and services. Although larger, corporate banks may appear to provide the best services, community banks, in reality, provide the exact same services and, often times, in a more efficient and friendly way.
These community banks are able to provide such quality services due to the overwhelming support they receive from their communities.
Community banks receive support from their communities that allow them to thrive in a world of larger, corporate banks. Community banks rely on their local customers and businesses to provide them with money to use in investments and securities. As customers entrust their finances with the bank, it, in turn, uses the extra money to gain a profit through these securities and investments. As well as providing money to invest, the community also supports the bank by providing a place to succeed. When a community bank gets involved in local activities and fundraisers, it gains a reputation among the populace. With this established, customers often find the bank and its employees more comfortable and proficient to work with and, thus, the bank receives more business.
Although the community supports the bank in a variety of ways, the community also receives many benefits from having a bank as well.
Community banks may not seem to benefit communities as much as corporate banks, but, in reality, smaller banks provide almost the exact same services as the larger ones. In community banks, a customer could open an account, receive a loan, or cash a check as easily as a customer in a larger bank. In fact, the tasks may be easier at a community bank where personal familiarities make banking more satisfactory.
At a community bank, loan officers and tellers often know the customers personally and, therefore, can make more accurate decisions about credit scores and loans.
Since this is an uncommon occurrence at corporate banks, employees can only use policies and interest rates to make important decisions about their services. Unlike corporate banks, community banks are also known for becoming involved in many local affairs.
Community banks often participate and donate to organizations such as local churches, local schools, the Girl Scouts, and the local FFA Chapter. Each organization benefits from the bank's generosity, whereas, with a corporate bank, these organizations and similar ones would rarely receive any help with funding and current projects. Without a community bank, these organizations and the community itself would not prosper successfully.
Community banks are able to prosper and provide services due to the overwhelming support they receive from their communities.
The community provides money for the bank to use in investments and gives the bank an image in society. In return, community banks provide a variety of services in a professional, yet, comfortable atmosphere and often become involved in local affairs as well. Both the bank and the community rely on each other to encourage prosperity and success amidst a world of larger, corporate banks.
With the support of the communities, the smaller, community banks will no doubt benefit the United Statesâ economy, and conceivably, the worldâs economy as well.
Local Citizens Lend a Hand
2nd Place -Megan McCollum
Technology offers the exciting opportunity to compete with the largest financial institutions on equal footing. Community banks have consistently offered the best customer service in their communities while offering a variety of products and services to meet their customer's needs. Community banks offer the services of checking accounts, saving accounts, loans, agricultural related loans, real estate loans, and many more. Community banks have the advantage of knowing and understanding their customer's needs as opposed to corporate banks. Community support continues to offer its local community bank and businesses numerous benefits.
Community support gives their local bank and businesses the opportunity to interact with their town. Serving the community allows the bank to create a friendly relationship with their customers while in turn; they are receiving their community's business. Consistent response of the community through their local bank grants the bank the chance to participate in town activities such as the county fair, holiday donations, and even scholarships for their youth. By taking part in these activities, the bank itself continues to make profit and also continues to maintain a healthy reputation within the community.
Community banks face frequent challenges today that their town's support could help them overcome. Although corporate banks offer the same products and services, they do not depend on any certain community. Corporate banks may have a building in the community, but the community is not well served.
Competition between corporate banks is a huge obstacle for local banks. By local citizens offering their business and support, it allows the local banks to succeed in matching the corporate banks' attractive offerings. One of the most interesting tests of the community bank's ability to maintain the balance of costs is through investments.
Community support reminds them to focus on costs while making the right technology investments. The greatest challenge for community banks may be to create a boundary around their customers. Every bank's customers are now easily reached by telephone, by mail, and by computer. The challenge is to protect the bank's most profitable customers. As community banks continue to do this for their frequent customers it shows the community that they care and that they need their town's support to survive.
Community support improves the local bank by helping it adapt to the changing environment. Community banks continue to hold the highest level of trust among any type of bank. Their purpose is not solely to make a profit and benefit themselves, but to serve their community, and to serve it well.
Success of Small Town Banking
3rd Place - by Kim Waddell
The economy for communities today could very well be described as unstable. Every year seems to bring with it more job lay-offs and factory closings. Many citizens find themselves struggling emotionally and financially. Money is a necessity for survival. As the economy continues to have it ups and downs, one thing is for certain; a community banks is at the heart of every successful area.
Admittedly, a community needs other businesses to assist in the process of success. A community bank, however, is the backbone of the area. Community banking is personal. The bank serves people, and the people serve the bank. That interest is in order for the bank to prosper, it needs customers and their support. Employees and officers of the community bank make a commitment to invest the money that is brought in. Either the money stays in the bank, or it goes out in the form of loans. That is frequently referred to as the Community Investment Policy.
All the decisions that need to be made about loans or requests from customers are made on the spot, at the community bank. Larger banks commonly referred to as corporate banks, have a waiting period. No decisions are made on the spot, the employer must write down the information required by the main office, and send an application in. The decision is then based on type of loan, salary, and sometimes even a credit check. Corporate banks are not concerned about the common interests of the community. They are just a branch of a major corporation. The best interest of the community is not the best interest of the corporate bank.
It is very important for the community bank to be active in the area. In many cases, students from the area school will put the bank on the top of their list to go to for donations for various activities and fundraisers. The bank gives to the community and in return, the community gives to the bank. Many employees of the bank are involved in community affairs and serve on many community boards. They want to see success among the community businesses and schools. In order to keep the community solid and stable, it needs all the businesses to work together.
With all the businesses working together to be successful, community banks offer many rewards for their customers. They do not offer cash awards, or a complimentary muffin and coffee every time a customer walks in the door, but a personal relationship with the bank employees.
Customers do not need to show proof of identification every time they are in the bank. Instead, they are normally greeted on a first-name basis and asked how their family is doing. When a customer comes into the bank to ask for a loan, the decision is based on personal knowledge.
The loan officer is familiar with them, and their needs. Community banks offer many programs to their customers. They offer medical, personal, farm and business loans.
They provide their customers with saving accounts, checking accounts, safety deposit boxes, money market accounts, individual retirement accounts, Christmas clubs and certificates of deposit.
In order for a community to be successful, it needs a community bank.
Community and corporate banks, in business, do the exact same things. Community banking, however, depends on the support of the community, and the community depends on the support of the bank.
The community must stick together when times are rough, as well as build on times when all is good.
Bank of Stronghurst Awards $500 of Scholarships to Southern 2004 Graduates. From left to right - Stacie Newberry and Rod Brake from the bank gave checks to winners Sara Ford-1st, Megan McCollum-2nd, and Kim Waddell-3rd.