Many community banks are adding a wider variety of consumer credit cards to their list of products, a move that is already being celebrated by some Americans who have long touted the benefits of local institutions.
A recent Wall Street Journal highlighted the expansion of community banking programs to include more diverse and beneficial credit cards. Experts say these additions will help local banks to continue leveling the playing field with large national institutions. Unlike megabanks, which have been forced to increase rates, slash spending limits and close inactive accounts to remain profitable, community banks have held their low rates steady and steered clear of making significant changes to consumer credit accounts.
Further, many community banks are seeing the expansion as a way to stay profitable and gain a larger market share by offering more products to existing customers, the Journal reports.
And this strategy may be working. Jocelyn Goldberg, a New York resident, told the Journal that she currently has six credit cards issued by megabanks. However, after seeing signs advertising a new credit card by community institution, M&T Bank, she quickly signed up and is happy with her decision.