We all know banking is a complicated and tedious business, as much as we’d like to avoid it there’s really no way around it. The leading factor that draws potential customers to a bank is undoubtedly that of trust. Based on the trust factor there are subsequent factors of which to avoid before choosing the bank that best suits you.
When you first open a bank account you may or may not realize it, but your bank tacks on hidden fees wherever they can. In 2017 consumers spent an average of $329 in hidden fees. The top five fees include overdraft fees, ATM fees, monthly service fees, paper statement fees, and withdrawal fees. What account holders don’t know is that usually, these fees are optional because banks don’t want you to know you don’t have to pay them. You may realize these fees and think nothing of it because they are so minuscule, but they certainly add up over time. As a result of this, many people lose faith in their banks due to a lack of character; no one wants to affiliate with a bank that practices tricky tactics for personal gain.
Customer service problems:
It may be the most obvious variable but a major problem with the banking industry is the customer service, or rather lack thereof. People that put their trust into banks expect a certain level of customer service because after all, it is their money being held. Unfortunately, this is typically an outsourced job or even automated to reduce the cost for banks. This results in long waiting times and difficulty resolving issues. What customers want when contacting customer service is a personal, human experience to resolve whatever issue they may have.
Loyalty is crucial:
As the world becomes more globalized by the day, loyalty is a key fundamental that is subsequently going out the window. Like good customer service, customers prefer to establish a lasting relationship with their banks in order to feel that someone cares about them and their financial well-being. This does not mean preferential treatment, rather a feeling of appreciativeness for their loyalty to their bank.
Problems for small businesses:
Switching the focus from individual customers to small business owners, we see a significant flaw in the system, with many banks admitting their service requires improvement. Most people don’t realize that small business owners rely on a large profit margin in order to put food on their families table; which is why they rely on their banks for low cost and minimal hassle. Small businesses rely on their banks for everything from cash flow to payroll, meaning if anything gets confused along the way, like hidden fees or a suddenly frozen account, the result is notable. All these small problems result in discomfort on small businesses owners which can significantly affect their business.
Given the increasing adaptation of telecommunications technology, it is not surprising that a growing segment of banking consumers prefer to conduct at least some of their banking business using self-service delivery systems. Most consumers are willing to accept increased technology in return for independence over their transactions. It is no secret that using technology-based services is far less expensive and much faster service, not to mention that many customers prefer technology-based services. This provides consumers with a high level of satisfaction ultimately resulting in customer loyalty.