7 Reasons That Prompt You To Switch Banks

SiliconIndia   |   Tuesday, October 2, 2012



 You are no stranger to banks. Everyday you make several transactions and invest in FDs and PPF. It provides a number of financial solution and services. Even your bank may provide your such solution, but still there are factors which prompts you to switch or leave your bank. The 2012 Retail Banking Voice of the Customer Survey, Capgemini, has presented 7 such factors that can prompt you to leave a bank, as reported by Yahoo.com.


Fees


Your bank may not inform you always whenever it increases its transaction charges or processing fee. But you need to keep a watch on it. As the banker sitting in his office is concerned more about his profit and not about your losses. The best way to avoid paying hefty fees, is choosing a bank which is more favourable and chargers lesser fee. Globally 50 percent of people surveyed by Capgemini stated that the various kinds of fees is a major reason for them to leave their bank.

Quality of service


Your bank can provide you a number of services but may not specialize in any. Sometimes more than the quantity of number of services, it’s the quality of services which matters. Your bank could be one which makes you stand for hours in a queue and then wait for your turn. This is a very common problem faced with retail banks. If you don’t want delay in your bank transactions, then choose a bank which provides better quality of services. More then 53 percent of the people surveyed said that the quality of service provided by their bank provokes them to switch their bank.


Quality of advice


Bankers can do a lot more than just taking your money deposits and sanctioning you loans.  He should also advice you on various investment schemes and insurance plans.  And if your banker is already providing you advices on financial planning, but you find his quality of advice poor and non profitable, may be then it’s time for you to approach a smarter banker from a different bank. 44 percent of the people said that the quality of advice is a major factor considered by them while choosing a bank.

Interest rates


Your bank interest rates could a reason to prompt you to shift your banking base. You must always avoid banks which charges high rate of interest on loans and offers low interest rates on deposits. As per the survey report, more than 49 percent of customers leave the bank if unsatisfied with their interest rates. Hence, if you are also unhappy with your bank’s interest rate, then may be its time to change your bank. The survey report states that 49 percent of bank customers cites interest rate as a reason to shift from their banks.


Accessibility and Convenience


Never opt for a bank whose number of branches are few or situated in remote locations, as their inaccessibility can cause a problem in retail banking. The worst would be, if the bank also doesn’t provide you online and mobile banking facilities. Especially if you live in metro, avoid such banks because travelling to their location would be a time consuming and costly affair. These two are most important factors considered by 42 percent of people globally, which provokes them to leave their bank.


ATM locations


ATM is a much better solution for the long standing hour in retail bank for withdrawing cash. But all banks does not have ATM locations or have ATMs which goes out of order for most of the times, if you are a customer of one such bank, then you may at times face some troubles. For instance you would be allowed only five free withdrawals from ATMs of other banks, and after that for any number of additional withdrawals from ATM, other banks would charge you. 40 percent of the surveyed people said that ATM location is a difficult situation for them at times, which also becomes a reason for them to leave their bank.




Ease of use


After being tierd of work on the weekdays, you don't want to waste your weekend breaking your head on a bank process or transaction. Your bank also need to provide you easy processes of handling money so that you have a lot of time for other things. Does your bank keeps you hassled with it complicated banking system? Where else, if you will not be able to understand how you bank functions, how will you deal with it? It is always recommended to leave your primary bank, if you find its services inconvenient and difficult to understand.