The first mutual banks were established back in the 1800s, where in some instances they were referred to as “Building Societies.” Members of a community – working people who otherwise could not afford to buy or build their own home – would join a cooperative Building Society, each contributing an amount of money that would be advanced to one of the members as a “mortgage” to buy or build a home. The mortgage would be repaid and additional contributions made, eventually allowing each member to own their own home. Rather than traditional bankers who loaned money for profits, these societies were created to benefit the community and its members.
While times may have changed, the working philosophy of mutual banks remains intact: to help customers, local businesses and communities prosper. NVE Bank has proudly carried on this tradition for over 126 years, serving the people of Northern New Jersey and continuing to grow and prosper as one of the strongest mutual, community-based organizations in the Garden State.
Here are a few instances where banking with a mutual bank may yield benefits for you and your family:
As we’ve established, mutual banks are in place to benefit the surrounding community, and part of that benefit stems from the people who work there. If your mutual bank has branches located in or near an area where you’re considering purchasing a home, you don’t just have bankers…you have neighbors! At NVE, our headquarters are in Englewood but we have 12 branches throughout Northern New Jersey, so unlike what you may find with big banks, all our decision makers are located across town, not across the country. That means you’ll have access to the people who can give you answers —quickly and efficiently — with a local point of view. The confidence and peace of mind that can instill in a home buyer can be invaluable. As a mutual bank, we can also offer customers competitive mortgage rates to make their home-buying dreams become a reality.
Mutual banks like NVE have a vested interest in controlling risk and act as a stable local financial influence. We have no exposure to risky sub-prime loans or fragile European markets. The vast majority of our customers — both commercial and consumer — live and do business in the towns we serve.
At mutual banks, customer satisfaction is a priority. A recent Ernst & Young survey of nearly 30,000 bank customers revealed insights and patterns behind their behavior. Worldwide, the number of customers planning to change banks has increased from 7% to 12%, and this survey provides a look at some of the reasons why. Interestingly, several of the lacking areas are where mutual banks tend to excel:
21%- Lack of personalized contact
29%- proximity of branches
30%- poor branch experience
Mutual banks are big enough to serve the needs of the community, yet small enough to care for each customer. At NVE, for example, we offer a full range of products and services that compare with any of the large financial institutions, but we offer one thing bigger banks can’t: an unparalleled commitment to customer satisfaction.
To learn more about services and special promotions offered by NVE Bank, visit our website. You can also visit your convenient neighborhood branch, or call us at 1-866-NVE BANK.