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 (https://www.localfirstaz.com/banking) 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:
- Keep Your Money Where Your Home Is: Meet and Greet with Community Banks and Credit Unions
Thursday, April 6, 5:30 PM – 7:30 PM, Hotel Valley Ho in Scottsdale
Join Local First Arizona at their annual Community Banking Month Meet and Greet with locally owned banks and credit unions. Local First Arizona gathers 15 financial institutions in one room so businesses can speak directly to representatives about moving their business accounts to a local bank or credit union. This low-pressure event is a great way for business owners and representatives to discuss their financial needs and begin the process of switching their accounts to a local financial institution. This event is free to attend. More details and RSVP: https://www.localfirstaz.com/events/bank-local-meet-up
- The Big Short Film Screening
Thursday, April 13, 6:00pm 9:00pm, FilmBar in Phoenix
For Community Banking Month this April, Local First Arizona is hosting a free film screening of The Big Short at FilmBar in Phoenix. The Big Short spotlights the role Wall Street and big banks played in the 2008 Financial Crisis in an engaging story of four financial buffs trying to bet against the housing market. Local banks and credit unions will be on site to talk to guests about their local banking options. This event is free to attend and space is limited to 75 people. More details and RSVP: https://www.localfirstaz.com/events/move-your-money-big-short-film
For more information on the impacts of banking locally and Community Banking Month, visit https://www.localfirstaz.com/banking.
About Local First Arizona:
Founded in 2003 Local First Arizona (LFA) is a statewide non-profit organization working to strengthen communities and local economies through growing, supporting and celebrating locally owned businesses throughout the state of Arizona. LFA seeks to promote, support, and celebrate a vibrant and sustainable Arizona economy by educating consumers, stakeholders, business leaders, and policymakers about local business ownership, social equity, cultural diversity, environmental kinship and collaboration. Visit localfirstaz.com for more information and a directory of nearly 3,000 locally owned businesses.