Family-Owned Banks

Family-owned banks have a long history of contributing to local and national economies around the world. 

Family banks can be passed down from generation to generation, which may lead to a more stable and longer-term approach to running their operations. This is beneficial to customers as it can encourage sustainable business practices, credible lending, and a focus on the long-term health of the bank. 

Choosing a family-run bank means putting your savings toward the various advantages that these institutions can promote, such as job creation, innovation, and community enrichment.

Key takeaways

  • Long-term objectives: Family-owned banks can be focused on maintaining their legacy, which ensures they prioritize long-term goals.

  • Better relations: Since these banks tend to be more focused on their local communities, they often foster strong relationships based on trust with their employees and personalized service for their customers. 

  • Flexibility: As a result of reduced bureaucracy, family-run banks can be more flexible with their lending, as well as the products and services they offer.

What’s on this page

There are multiple advantages to family-owned banks and the value they add to their customers, community, and staff! Here’s what you need to know:

  1. What’s special about family-owned banks

  2. Family-owned banks and their communities

  3. How family-owned banks fare over their competition

  4. Why should you choose a family-owned bank?

What’s special about family-owned banks

Family-run banks typically have a multi-generational approach and can be dedicated to ensuring their institutional legacy is retained over time. As a result, they're able to function in a manner that conforms to the shared vision and values of their founders and directors. 

Having shared ownership and responsibility allows family members to strive to achieve set goals while giving their bank a sense of purpose and direction. As a result of these shared values, the drive to achieve success can be heightened, and the bank may be able to better focus on long-term sustainability rather than concerning itself with short-term gains. 

Additionally, since the bank is owned by a family, they can be motivated to achieve continued success since their business would be passed down to future generations, creating a sense of legacy. As a result, family-run banks may be able to implement more durable and long-term business plans.

Family-owned banks and their communities

Family-owned banks can provide stability and continuity. You may see family-owned banks with a focus on long-term success and strong values that align with their community, especially since their owners and employees are generally members of the same community. This connection to the community may mean that the bank is more flexible and may go the extra mile to meet a customer’s needs.

Family-run banks can also foster personal relationships with their employees, providing a sense of community and belonging that can lead to higher job satisfaction and retention. This, ultimately, means that customers may get better service from the bank. 

How family-owned banks fare over their competition

Family-owned banks have a key advantage over their bigger and more centralized competitors: flexibility. Such banks have unmatched agility when it comes to adjusting to the needs of their customers and are generally quick to react to changing trends and market conditions. 

Unlike their larger counterparts, family-owned banks are typically not constrained by shareholder demands or corporate directives, giving them the freedom to decide what is best for their customers. At the same time, with less controls in place there may be a greater risk of the bank moving in the wrong direction or negative decisions having a greater impact on customers.

Family-owned banks also have the advantage of being nimble enough to change course in response to shifting market dynamics. At the same time, without larger oversight, a family-owned bank could also miss out on shifting market dynamics due to more concentrated leadership.

Why should you choose a family-owned bank?

Family-owned banks provide multiple benefits to both their local and wider economies, helping to boost economic development by creating jobs, driving investments, and encouraging efficient growth. 

But why should that matter to the average customer who just wants to grow their savings? 

It matters because apart from the larger benefits that family-owned banks bring to their communities and local economies, they also make a lot of difference to individual customers. 

Family-owned bank spotlight: The State Exchange Bank

The State Exchange Bank is a family-owned bank based in Lamont, Oklahoma. With over 120 years of experience, The State Exchange Bank remains a locally-owned independent community bank.

Save with family-owned banks on Raisin

Family-owned banks can go the extra mile in meeting customer expectations and offering customized solutions, something that most larger banks would struggle to do. 

Engage with a suite of reputable, family-owned banks through Raisin. Our revolutionary financial marketplace only features federally insured banks and credit unions, offering some of the most competitive interest rates and products available in the market today. 

What’s more, Raisin lets you operate multiple accounts with different financial institutions through a single login. Explore our products and reinvent your savings journey with Raisin today.

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