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How Consumers Are Gaining More Power Over Their Banks

How Consumers Are Gaining More Power Over Their Banks

If you ever thought that you had little to no power when it came to what your bank offers you and how it treats you, then think again. It has been proved by several research agencies that bank customers can actually have an impressive amount of power over their banks, especially when they are frustrated.

In surveys that encompassed tens of thousands of banking customers who also tend to acquire personal loans, studies found that a great number of them were not only unhappy with their banks, but also very dissatisfied with the service provided to them and with the rates they get on personal loans.

The next piece of the study is the interesting one though: Those customers are as much as twice as likely to switch banks immediately if they find a bank that easily adapts its products, services and personal loans to meet their specific needs and requirements.

Banks are Not Almighty

Thankfully, banks and other lending companies have realized this and are starting to take measures to retain their customers, focusing especially on those who are tech-savvy and who know they could switch banks and personal loan lenders in just a couple of clicks. Nowadays, it is extremely easy to compare the rates for personal loans and service quality that different banks have to offer, so that is even further incentive for banks start providing better service, rates for personal loans and many other perks to their customers, like loyalty rewards, personalized terms for personal loans and more.

In fact, banks and personal loan lenders are realizing that one of the best ways to succeed in retaining customers is to offer increasingly transparent pricing and on providing quick and accurate answers to customers questions, doubts and requests for help. That, coupled with better interest rates for personal loans and special offers that are tailored to their customers is starting to show very sportive results for banks and personal loan lenders.

And this is just the beginning. These kinds of offers and behaviors from banks and personal loan lenders are becoming mainstream, especially now that banks are struggling to survive in a market that is not only competitive, but that is also recovering from one of the most damaging financial crises of the past few decades.

Bank Customers are Changing Also

It is not only banks the ones who are finding ways to keep their customers and personal loan borrowers, customers are also changing their attitude towards banks and personal loan lenders. Now, nine out of ten bank customers actually expect some sort of perk of reward (financial or not) in order for them to remain loyal to their banks.

Customers are also realizing that their banks almost never actually care for their best interests, and have started to demand lower rates for their personal loans and higher ones for their savings’ gains. Additionally, banks that take fees and charges that are excessive and not explained properly risk becoming increasingly unpopular, which in turn will decrease their personal loan business considerably.

But these are not the only issues customers are taking notice of and complaining about. They also have started to demand changes in smaller aspects of their banking experiences, including having to calls to many branches of a bank just to update an address or to be put on hold for long periods of time. This in turn, is forcing banks to become more centralized and to operate better, so it becomes a win-win situation.

As already mentioned, the great thing about the nowadays scenario is that banks can no longer rest on their laurels. They have to start innovating to find ways in which the customer experience becomes better every time, otherwise they risk losing precious business and personal loan borrowers.