Five Frustrations Consumers' have with their BanksWritten by Carly Simon-Gersuk
Consumers’ frustrations with their primary financial institutions range from mildly annoyed to outright rage. But, how far will their frustrations go before a consumer will leave for another financial institution?
A recent study conducted with over 4,050 U.S. consumers found that major retail banking brands are at higher risk than ever of losing customers. Why? Here are the top five reasons they found:
Here are the top five:
1.Acting in dishonest, unethical or illegal ways
The study found that consumers feel banks only act in their own interest and don’t care about the interests of their customers. In hopes of receiving more money on interest, banks have predatory lending practices that can lead consumers into high debt. Some of these practices include charging high customers fees, increasing their credit limits, and up-selling them on accounts they do not need.
2.Constantly slapping customers with unnecessary and costly fees
Bank fees have risen annually at alarming rates, and with many of them being hidden. BankFeeFinder.com released a report that analyzed over 5,000 US bank customers and found that Americans pay an average of $329 annually in bank fees.
3.Failing to offer competitive rates and pricing
Competition is fierce, so to compete with other financial institutions, banks attempt to keep rates competitive. But they still have to appease shareholders (aka make money) so they do so at a price – and if you think you aren’t paying it, think again. For example, consumers may receive lower interest rates for CDs, but they are charged higher fees for maintaining deposit accounts.
4.Data breaches or exposing personal/account data
The Capital One mega breach, for example, exposed over 100 million records. And that’s just one example.
5.Hitting them with overdraft charges
Banks collected more than $30 billion in overdraft fees in 2020 – a year where every penny mattered.
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