It’s Time for a Revolution in Banking

For over two decades, the financial institutions, law makers and regulators have slowly converted the greatest economic development business into a complex, short-sighted, self-oriented collection of corporations.  In this same period, Independence Bank has dedicated itself to continue with those old long-standing traditional banking values.

• Values that place extraordinary customer service before the next quarter’s profits.
• Values that place employee needs before the corporation’s wants.
• Values that contribute to the economic growth of our communities.
• Values that return generously to communities that invest and believe in us.

Two decades ago, laws, accounting standards and regulators opened the gates to allow an unprecedented volume of mergers and acquisitions in the financial world.  Premiums grew as supply lessened, and it became harder to liquefy expense to justify cost of expansion.  With rising costs, new and more productive means of revenue were devised.  Many banks developed new products and lucrative service-charge routines to politely charge customers at the maximum acceptable level and sometimes beyond.  Banks learned in this era that the majority of their customers will NEVER LEAVE THEIR BANK – NO MATTER HOW HARSHLY THEY ARE TREATED.  During this period, other income rose from 25% of net income to nearly 100% of net income.  This meant the banks net income relied solely on how far they could push service charges to their customers.

Independence Bank has always ranked very poorly against its peers in service-charge income per every comparison.  We challenge every employee to ensure that any charge, interest rate or fee is priced by fairness per service, per event and per customer.  This is a nearly impossible task, but our goal is to be FAIR to the customer, FAIR to the bank, FAIR to the employee and FAIR to the shareholders.

In 1997, we combined two small banks and renamed them as one with the Independence Bank brand.  We chose this name to represent the GOAL that we would hold onto the values we felt were once great in our industry.  We devised a long-term plan that would save us from the traps that burden a majority of banks today.  The plan included an Employee Stock Ownership Program that could one day control the bank, build the greatest group of banking professionals and let them do the jobs they know well. It would also allow the employee to remain involved in the responsible economic growth of our communities through conservative lending and Community Reinvestment Act practices, give back to our community organizations and communities with participation and gifts, become the BEST PLACE to WORK,  mandate FAIRNESS into every pricing policy and plan for a fair return to investors.

In 2009, Independence Bank is proud to be recognized as:

• A BEST PLACE to WORK in KY for the fourth year in a row.
• One of the nation’s fastest growing banks without acquisitions or mergers.
• Voted #1 business who gives back to its community and #1 Financial Institution according to the Readers Choice Awards.
• #11  top-performing community bank in the nation.
• #1 agricultural lender in the state of Kentucky.

It would seem that the OLD BANKING FORMULA still works today!  LONG LIVE THE REVOLUTION!!