A phenomenon occurring in many nations around the world is consumers turning more and more to smaller banks, pulling their accounts from the major players in the financial industry. There are a number of reasons behind this trend, including the feeling that the big guys simply do not care that much about customers, except those depositors who are providing millions or billions to the coffers. In addition, smaller banks can often offer competitive interest rates and maybe even some perks that the larger banks are cutting back on or doing away with altogether. It is not hard to see why local and regionally based banks are suddenly looking much more attractive.

One of the best ways to understand why smaller banks are enjoying something of a renaissance among consumers is to look at what banks like UCO Bank and Deniz Bank are doing. In the case of UCO, the bank is offering some services absolutely free, including certain current and savings account types that the larger banks in India are still collecting monthly fees on, with no plans to change policies. In addition, the bank has a robust internet banking infrastructure that easily competes with anything the larger banks have to offer. When coupled with the fact that UCO is considered accessible and responsive to customers and also has aggressive interest rates for everything from school loans to home financing, it is no wonder this smaller bank is making inroads in the marketplace.

A similar situation exists with Deniz Bank in Turkey. As Dexia, a Belgian bank, holds a controlling interest in the institution, Deniz Bank is positioned to create a network of related financial service companies that covers just about any type of financial need that a residential or commercial customer could require. Ranging from basic banking services that are suitable for the rank and file customers who live from one paycheque to the next, to financially comfortable clients who need an impressive array of investment and asset management support options, Deniz Bank does it all. Along with the expertise to offer one stop shopping for customers, the bank also manages to provide these services for rates that are surprisingly competitive.

Without a doubt, the ability to cultivate and maintain trust is an important part of the appeal of the smaller banks. After all, consumers do not view smaller banks as being responsible for the financial woes of the last several years. In some cases, they represent a chance to make a new start after undergoing financial reverses and align with a bank that seems to understand what rebuilding is all about and has the benefit of a local presence, unencumbered with what many consumers perceive as a top heavy organisation with leaders who live half a world away. As long as local and regional banks are able to hold on to the perception of being more accessible and more caring to even their smallest of depositors, while larger banks are often seen more as the enemy, there is a good chance that they will continue incrementally adding to their customer bases.