Wave of Bank Mergers: How they Affect You And Your Business
Co-authored by:
Garit Boothe Owner of Content Marketing Agency “Digital Honey”
Most people don't think about the banking business unless it's in the news. In the same way, banks may look like they will always be there, but many of them change or join with other banks for different reasons. Experts say it's nothing to worry about, but there are some things to think about and changes you might have to make.
Dive In:
What is a Bank Merger
Watch for changes in your account & Decide if you will stay: Co-authored by: Garit Boothe Owner of Content Marketing Agency “Digital Honey”
Replacing cards and changing information
Setbacks to business accounts
Commotion in customer service?
What is a bank merger?
When two banks join together to make one company with new ownership and a new legal structure, this is called a bank merger. People usually consider it a friendly purchase because the two banks have agreed to work together, however, this is often not the case.
A bank might start deciding to merge with some other bank to cut costs or move into a new market. It also helps a bank grow and get more customers, giving it more money to use. When banks have more capital, they can give customers more loan options.
Two banks might also join forces to make up for gaps in technology or products. One bank may have a great team of people who lend money to businesses, while the other might be good at managing wealth. By coming together, the two banks can give their customers better services.
When banks join together, the name is sometimes the only thing that changes. In other cases, many products and services have been added to improve customer experience. Even though your bank has joined with another, that doesn't mean you need to find a new one. Most of the time, the new bank will be very similar to the one you've used.
Watch for changes in your account & Decide if you will stay:
Co-authored by: Garit Boothe Owner of Content Marketing Agency “Digital Honey”
After a bank merger, the new bank may change how it does loans. This could mean different loan options, interest rates, or rules for getting a loan.
For example, you may need a higher credit score or make more money to be approved for a loan.
It's also possible that the new bank will stop offering certain loans or change the terms of the loans that it does offer. If you have a loan with the bank, it's important to pay attention to any changes that are made and to check your loan documents carefully. If you have any questions or concerns, you should contact the bank's customer service team for help.
When two banks merge, they will combine their mortgages, business accounts, and loans together. This means that the terms and conditions of these accounts may change, as well as the interest rates and fees. Customers may also have changes in their account numbers, login information, and online banking portals. Some customers may not be able to use certain products or services that were offered by one of the banks. It's important for customers to read any information they receive from the bank and to ask any
questions they may have.
When thinking about staying with a bank after it merges, you should look at a few things. Some examples are:
If the bank's fees and charges are good compared to other banks
If the bank has the services you need, like online banking or loans
If the bank's branches and ATMs are convenient for you
If the bank's customer service is good
If the bank is financially stable.
Replacing cards and changing information
One thing that will always happen when a bank changes hands is that customers' basic banking information will change. Since your account numbers will likely change after the switch, you'll need to replace any credit or debit cards you hold with the bank and stop any automatic payments linked to those cards.
Even though it's inconvenient, this might not seem like a big deal in the big picture of your banking life. But remember that this does not always go as seamlessly as the bank says it will. During mergers, debit cards, as well as other digital services, don't always work well. Hinsdale Bank & Trust's SVP and head of retail banking.
Customers already going through a lot of change quickly can find this very frustrating. Since many other customers will be trying to stimulate their new cards simultaneously, as you, this rush could cause delays. And the longer you go without your cards, the harder it will be to do the things you need daily.
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Setbacks to business accounts
Problems with transitions can be annoying and inconvenient for personal accounts, but they can be very bad for business accounts. Sometimes, changing to a business bank account is harder than changing to a personal account. And if you can't get into your business bank account for a long time, your way of life is in danger.
Very important transactions could fail, which would be bad for you and your customers. Most business owners have set routines for one's books, and any changes that happen when banks merge can hurt their businesses. Also, remember that your bank's move could make it less familiar with the local business scene, making it harder for your bankers to help and understand you than before.
Commotion in customer service?
When you encounter a problem with your bank's transition, it makes sense to call customer service to help you find a solution. During the busiest time of a transition, however, customer service is likely to be busy, leaving you to deal with the effects of high volume.
If you need help, you might have to wait up to an hour because hundreds or thousands of other customers are also going through the change. Even if you get in touch with a customer service rep, they might not treat you like a person and give you a solution that isn't good enough or doesn't work.
It's also possible that your problem is so complicated that you'll be passed around to different people repeatedly, but nothing will get fixed. Staying with a bank that wants to treat you like just another account number isn't worth it.
Through all of life's ups and downs, you need a bank that you can count on to meet your long-term needs and understand your community just as well as you do.
