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Should big banks start worrying about losing their customers?
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6 Answers
All financial institutions need to be concerned about losing their customers regardless of their size. I don' think the government can fix the problems at all.
What financial institutions seem to be missing is that their customers mentality and habits have changed dramatically.
They have shifted from borrowers and spenders to people who are eliminating debt and saving more. This fundamental change mandates a change in how these institutions measure their success and what products and services they offer.
The futurist Joel Barker said "when a paradigm shifts, everyone goes back to zero". For banks and other financial institutions, the rules have changed and they had better get after the job of reinventing themselves to provide what their customers want or they will not survive.
Yes, absolutely, the banks need to be VERY worried about losing customers. Just read the newspapers and see how many bailed on BofA because of the recent debacle. And how quickly!
It's a tinderbox right now. The general populace is extremely fed up with the big banks because of their greed and irresponsibility especially in the last few years, and people are just waiting for an opportunity to punch them in the nose, in any way they can.
Any big bank that gets in the cross-hairs of the general public right now will be in for major trouble and loss of business.
Al Shultz
www.alshultz.com
Yes. There is a significant move towards credit unions, especially among the lower class. They are viewed as more community based and more trustworthy. Canada is far ahead of us in this regard, and we are moving more and more toward their model.
All banks should be concerned--just look at how the protests are growing on a daily basis.
The big banks are on thinner ice than the smaller ones, mainly because they are so corporate controlled that they've lost touch with their customers while the smaller ones seem to be more in touch with the community.
Yet they are ALL failing to recognize the needs of the public. Their concerns are still centered around their own needs & how they can come through these economic times without a loss. Until they listen & act & give their customers credit for waking up & demanding a piece of the pie, they're ALL at risk.
People are becoming more aware--of the situation & of their alternatives. Right now it seems credit unions are growing in popularity.
The American public isn't going to take their losses & shuffle home anymore............not while the bank execs are taking luxurious vacations, huge raises & bonuses on a regular basis.
The answer depends to a great extent on how the bank views itself. If it is a branch banking organization, dedicated to building community relationships as the basis for its activities, then it is likely to care very much.
If, however, it is a bank that has waded deeply into the 1970s legislation that repealed the prohibition on banks from engaging in high level finance products and risk-investing, then it probably doesn't care much about the rank and file client base because that's not where the money is. This is not to say, mind you, that it shouldn't care becuase government often steps back in at the behest of more vulnerable House members and swats banks that are openly contempuous of the main street client.
I don't think bib banks need to worry about anything until they are pressured by the government to change their ways. Just look at how well their are doing today, relative to the economy, all the big boys posted significant profits.
The BOA debacle was nothing more than a blip on their radar screen. Most people are too lazy to look for alternatives and many of us still rely on banks for our financial needs. The banks run this country and until that changes, they have nothing to worry about, however, on the flip side, the american public has a great deal to worry about.
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