By financen | November 7, 2018 - 9:26 am - Posted in Banking


Nowadays, it is very important for a bank or credit union to offer their customers the facility of paying bills online and direct deposit. If the bank is not able to offer this facility to their customers, there are chances that they will move to another bank or credit union. Moreover, if the customer has input all the information about his vendors and paying bills without any hassles, he will not want to go through the trouble of doing it again with another bank.

In the recent times, almost all major banks like Bank of America, Chase, and Wells Fargo have raised their fees for debit card usage. Many people complained against it including President Obama. And there were many other people who did not complain about anything. They just switched to another bank or credit union.

Kristen Christian, a famous art gallery owner in California, said she was very unhappy with the ridiculous fees and poor customer service of Bank of America so she created an event on Facebook called “Bank Transfer Day”. Days after she started this event, almost 80000 people signed up.

The credit union national association said that almost 65000 consumers nationwide moved to different credit unions, investing $4.5 billion in new savings account. It’s just an effort made by one single person in a social media website showing her unhappiness and that led 650000 people move to different bank, investing $4.5 billion.

 With the launch of SwitchAgent by Deluxe Corporation, consumers are now easily able to switch from one bank to another. There was another study that showed 66% of the account holders will consider switching primary financial institutions, but many accounts go dormant due to the laborious transition process. With the help of SwitchAgent, multiple billing vendors can be shifted, like mortgage payments, social security payments and utility bills can be moved to new accounts. This transition process will become a lot easier for both the financial institution and the consumer.

Recently, an ad campaign was introduced for hundreds of community banks and credit unions called “Scan and Switch”. This ad features a QR Code, when it is scanned with a smart phone, it will automatically take potential customers to the financial institutions’ web based switch kit.

Even congress is also getting involved. A bill was issued recently and the consumers will find it very easy to open and close bank accounts. This bill is called The Freedom and Mobility in Banking Act.

Though it has not been a good time for community banks and credit union to market about their products, services and lower fees, but with the new technology and laws, the customers find it easier to switch between different banks. And the banks need to offer more products and better customer service.

This entry was posted on Wednesday, November 7th, 2018 at 9:26 am and is filed under Banking. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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