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You want to throw your hat into the banking ring—but is it even possible to plant roots in such a difficult industry? Don't worry! Many community-oriented banks are opening across the country. With careful planning, the task of opening a bank might not be as impossible as you think.
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QuestionIs a bank a profitable business?Community AnswerIf the bank turns out well, it can turn out to be a very profitable business, However, keep in mind that there is lots of competition from experienced banks that have been around for longer. Also, if you want to start a new bank from scratch, you need to have a lot of money.
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QuestionIs there a minimum age I need to be before starting a bank?Community AnswerIn most jurisdictions, it 18 years or older.
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QuestionDo I have to have a bachelor's degree to open a bank?Community AnswerConsider getting a bachelor's or MBA before starting a bank. In most cases an MBA will suffice to teach you enough to know how to run a financial business. Surround yourself by people who are already well experienced in banking, people whose advice you trust.
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Tips
- Take it global. Introducing your company to the public means garnering more money, as people are willing to purchase stock in your company.Thanks
- Have officers from the bank make it a regular practice to go to the high schools and elementary schools in the community to teach the next generation the importance of savings and investments. This gets your bank involved in the community and helps build a reputation.Thanks
- Try to have a regional overseer financial group that monitors all other groups’ efforts. Have that group report up to you. Checks and balances are important and establish the important trust between your bank and the community investing with you.Thanks
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Article Summary
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Although opening a bank is a complicated process, you can get started by determining what type of bank you should open based on the services you’d like to offer. For example, if you’d like to offer personalized service to people who currently have to deal with large, institutional banks, consider opening a community bank. Once you know what kind of bank you want to open, create a business plan to show how investors will get a return on their money, and start looking for potential investors, like private equity funds or founders groups. To learn more, like how to find the right location for your bank, keep reading!
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Reader Success Stories
- "It is really difficult to get info like this. It is helpful to know what one needs to do and how to do it. In this age, we need a playing field that competition forces the more established banks to be a lot more responsible and be held accountable when they don't do well. I know what to do, and am grateful to you for providing the information. Thankfully, I know what to do with it." ..." more
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"It is really difficult to get info like this. It is helpful to know what one needs to do and how to do it. In this age, we need a playing field that competition forces the more established banks to be a lot more responsible and be held accountable when they don't do well. I know what to do, and am grateful to you for providing the information. Thankfully, I know what to do with it."
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"The whole article was helpful. I like the part about the schools, investing in your community, helping fund a new hospital, it's all about investing in people, to my credit scoring (bad). It's the small business ability to pay back the loan, not the credit score."
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"I'm a Nigerian seeking to establish a bank, and I had no idea how. This article has given me good knowledge of what is involved in such endeavors. It won't be easy, but now I know where to start and am not completely clueless about it anymore. Thanks."
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"I'm doing research into starting a bank from scratch because I'm in the process of doing so. This article has given me a sound path to follow and opened my eyes as to why particular things need to happen. I am better directed and feel more confident."
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"I am a inspired entrepreneur and am researching what companies I can start up. Am thinking big, and this post has helped and put my mind at ease, thanks. "
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