New Mexico Residents Favor Local Banks (67%) over National Banks (39%) in the 2020 Garrity Perception Survey

Favorability of Financial Institutions Vary Based on Local versus National Banks 

 New Mexico Residents Favor Local Banks (67%) over National Banks (39%) in the 2020 Garrity Perception Survey

New Mexico residents are more favorable towards local banks than they are national banks. According to the 2020 Garrity Perception Survey, Local Banks are viewed as the sixth most favorable of the 17 industries included in the research findings. National banks are the 15th most favorable institution. The scientific survey among New Mexico residents was conducted in late January 2020.

“By their nature, local banks have a unique connection to the community; that affinity is clearly reflected in GPS findings,” said Tom Garrity; President and CEO of The Garrity Group Public Relations. “The changing world of community banks and credit unions have created some mergers of convenience. However, despite new names and expanded customer segments, local banks continue to be known for their community connections.”

“National banks have a perception issue, but not because of the good work they do in our communities,” Garrity says. “The perception issues are likely due to issues at national banks in other parts of the country that get coverage on news networks or social media and review websites. Ever since the Great Recession of 2008, public perception of national banks has suffered. This is unfortunate because national banks help on their local communities, sometimes with greater financial impacts than local banks.”

Jerry Walker, president and CEO of the Independent Community Bankers Association indicated in a 2020 Perception Broadcast that the number of local community banks in New Mexico has dwindled from 46 in 1991 to 33 this year. “NM is slow going into and slow going out of a recession,” says Mr. Walker. “With our regulatory environment, with the gross receipts tax system and corporate income taxes, which some bordering states do not have, we expect our business growth to be slower this year.”

Local Banks

New Mexican’s favorability of Local Banks is consistent. In 2011, 66 percent of residents were favorable of local banks. In 2020, 67 percent of residents are favorable of local banks. New Mexico residents who annually earn between $40,000 and $79,999, have earned a high school degree and have lived in the state for more than 20 years are more favorable of local banks than other demographics.

Geographically, residents living in the Northwest region are more favorable of local banks than those who live in other parts of the state.  New Mexicans living in the North Central region and the Albuquerque area are also favorable of local banks than residents in other parts of New Mexico.

National Banks

National banks have routinely ranked lower than most other industries on the Garrity Perception Survey. The highest score for the industry came in 2015 with 41 percent of those surveyed having a favorable view. The lowest level of favorability was a mere 30 percent, in 2017. Favorability increased in 2020.

Geographically, residents living in the Eastern and Northwestern parts of New Mexico tend to have a higher level of favorability of national banks than residents living in Albuquerque or Las Cruces.