The $42B Question: Why Aren’t Americans Ditching Big Banks?
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Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#2Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#3Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks.
I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and employees. It is like some people don’t know you have a choice.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#4"People also are willing to pay for convenience and simplicity"
This is my reason for primarily banking at one of the large banks. I have my mortgage, checking and savings accounts all in one place and the physical bank and ATM is less than a mile away. That said, when I do have a large amount in savings I do move it to an online savings account with better rates.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#5[deleted]
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#6"People also are willing to pay for convenience and simplicity" This is my reason for primarily banking at one of the large banks. I have my mortgage, checking and savings accounts all in one place and the physical bank and ATM is less than a mile away. That said, when I do have a large amount in savings I do move it to an online savings account with better rates.
Banks can and do sell mortgages to other banks and other financial institutions all the time. So just because your mortgage is with that bank now doesn't mean it will be forever.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#7Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
> It is like some people don’t know you have a choice.
That's what all those ad spend dollars do, make sure new ideas are drowned out by a dull parade of decade-old information.
I've been very happy at a work-related credit union and I can't recommend them highly enough; no fees, boring online banking that doesn't change every 18 months, and the knowledge that I can get a human on the phone without having to tickle a robot's numbers.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#8In my experience, local credit unions beat banks in convenience, fees, and the ability to get a human on the phone almost every time.
I guess big banks just have bigger advertising budgets.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#9Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
> Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks.
In my case, they have been demonstrated as too big for the government to allow to fail. Smaller banks have not.
That moral hazard is why I still keep accounts with big banks.
Re: The $42B Question: Why Aren’t Americans Ditching Big Banks?
#10Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks. I bought stock in a regional bank that went through the 2008 crisis with hardly any drop in stock price, pays solid dividends, has beat the pants off Goldman Sachs from the viewpoint of the investor, but they also do well by their customers, community and em…
> when you get better service from credit unions and regional banks.
Anecdote: I have an account at a credit union connected to my wife's job. They've been really hard to work with. When my wife lost her ATM card, it took like 4 different phone calls to convince them to mail a new one. When I tried to get new checks with our new address on them, that was hard too. They have an Android app, but it's buggy.
Generally, they just seem like they need to hammer out some better business processes for things that customers commonly need.
I guess one thing I've learned is: if you're joining a credit union, make sure they have a physical office close to you. I feel like we could have gotten better service if we'd sat down across from a real person.