There's a real need for these, and some people are starting to see that. Rash of mergers That's prompting organizers next month to open Cottage Savings Bank in Montgomery, hoping to offer personalized banking services to businesses and consumers in northeastern Hamilton County. The bank's debut also has attracted Main Street investors hoping to make a profit. The private stock placement is expected to close by month's end. Cottage Savings, like other startup Tristate banks, hopes to profit from a void created by a rash of mergers of financial institutions that have left individuals and businesses with fewer community banks.
Many customers feel intimidated by large banks and fewer banking options.
Seven of the Tristate's largest thrifts have been bought since August 1998, leaving many neighborhoods with larger banks handling most of the money in those areas. Va. He said most startup banks blossom because they identify with a particular customer base in a given area. For example, he said, such an entity might target smaller businesses that need financing that's harder to get at larger banks or can offer personalized banking products that appeal to consumers in a geographical area. That is precisely what's helping Spring Valley Bank in Wyoming win business, increase revenues and boost profits. He said Spring Valley has a found a niche lending to entrepreneurs.