Niche banks – A bank that caters and serve specific needs of its customer based on their demographic segment of population. Basically a niche bank typically target specific market or a customer.

In the Philippines for example, Rural Bank of Pangasinan usually offers services and loans to some of our farmer and fishermen it is because Pangasinan is geographically located in both aqua-culture land and agricultural land.

If considering a niche bank, it is important to make sure it is PDIC or Philippine Deposit Insurance Corporation insured, and to ensure that it is a separately chartered entity and not affiliated with a bank where you might already have deposits. This is because the PDIC generally limits deposit insurance to P100,000 per person per chartered institution.

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Related ChexSystems Banking Information:

1. Member Bank
2. Federal Deposit Insurance Corporation
3. FDIC
4. How Do You Confirm that a Non-ChexSystems Bank is Legitimate?
5. PrePaid Debit Card Accounts — Are They Insured by the Government?

Tagged as: Customer Based Banks, Niche Banks