The banking sector has grown considerably. There are lots of commercial banks now offering different products and services to the customers. The industry has become very competitive. People also now shop around to find a better deal when it comes to opening an account. They switch banks for the following reasons.
Some banks offer very competitive interest rates on the savings account. This lures customers to switch banks. They try to get as much money as possible from their savings. So, they switch to a bank offering a better interest rate.
People shop around and try to find out the bank that has low fees. So, whenever they come across a bank offering low service charges, they switch to that bank.
Benefits and rewards
Some banks offer benefits and rewards like ID fraud assistance, gadget, breakdown cover, travel or phone insurance, etc. If someone travels often or has the habit of losing a phone then these benefits will be important for that person. So, they switch to banks that offer such benefits.
With cashback offer, you can earn a lot of money at the end of the year. People usually spend money in shops and there are many shops that offer cashback. So, if you choose to shop in only those stores providing you the cashback offer, you will benefit at the end of the year. Some banks will give you bonus cash back offer to switch to their bank.
We often spend more than our budget and overdraft can be very helpful during those times. Sometimes, companies may delay in paying your salary. You can use your overdraft to run your family during that difficult time. So, the higher amount of overdraft a bank offers, the better it is. People switch to banks that offer a certain amount of overdraft for 0% interest.
It is very important for banks to provide good customer service; otherwise, people will switch to other banks. If people can’t contact the customer service department promptly or cannot get their problems solved fast, they switch to banks that provide a better customer service.
Location and ATM facility
Banking convenience is an important factor for choosing a bank. A person will like to have an account in a bank that is located in a convenient location. The ATM facility should be readily available. If a person finds that it’s difficult to take out money due to location then they will switch their bank.
As there are many reasons why people switch banks, the banks need to improve their service and offer innovative products to the customers. They will constantly have to find ways to attract clients in order to increase their revenue.