If you are like most consumers, you have noticed the huge amount of fees banks are charging lately. We as consumers are overloaded with fees. We are charged for ATM withdrawals, overdraft fees, and statement fees. Sometimes of these fees are our fault; we might enjoy convenience, but we may not give enough considerations to the cost. You might be fed up with these fees, and looking for ways to stop paying those fees. You can achieve this for with minor modification.
Credit Unions
Credit unions can be an alternative to banking fees. These institutions are owned by their members, and pass their savings onto their members. Credit Unions are classified as not for profit entity unlike banks that are guided by their stockholders. The draw back to these institutions, however, is the lack of choices. If you are a convenience base customer, these institutions would not be a good choice because the locations are not as convenient as the banks.
Cost Saving Strategies
Know your bank features and follow the stipulated guidelines, for example, if you bank stipulates a minimum checki...
The Bank of the United States is a symbol of the long held American fear of centralization and government control. The bank was an attempt to bring some stability and control and was successful at doing this. However, both times the bank was chartered, forces within the economy ultimately destroyed it. The fear of centralization and control was ultimately detrimental to the U.S. economy.
Knowing the history of credit unions and how they were originally structured, it is important to understand where credit unions will be going in the future. It is anticipated that there will be less than 3,000 credit unions in the next 25 years. This is down considerably compared to the more than 6,000 existing credit unions in 2015 (Strozniak, 2015). Competition for credit unions will continue to be other financial institutions and financial services providers, but there will also be competitors entering the market, such as Peer-to-peer lenders and other fintech start ups that will begin to take over some of the existing credit union market space (Strozniak, 2015). Consumer lending is a core line of business for credit unions and in addition to traditional competition, sophisticated start-ups are starting to impact the market in terms of unsecured loans, mortgages and business loans (Strozniak, 2015). There are many economic principles that impact credit unions’ ability to compete in the financial services industry. The focus of this paper will be on market in which credit unions operate, the impact this market has on the credit unions’ ability to differentiate its products and or services in terms of pricing or features and the barriers credit unions face in their market that impact a credit union’s ability to grow and remain profitable in their market.
Other issues that the banks might want to consider, are the forecasts of the economy (especially inflation rates) and the consideration of a possible reaction of the Monopolies and Mergers Commission. The inflation would influence the rates and the Commission might influence the value of the fees.
What most consumers do not realise is the banks take deposits, loan them out via credit cards, home loans and personal loans, all the while collecting even greater interest payments on those types of loans. They return small interest amounts on savings, but charge high interest on credit cards, personal loans etc., meaning the bank makes large profits off just these things.
With the machine-led branches becoming more popular banks can now cut extreme costs with the machines. They no longer need many employees, a space to rent or buy, and they can be open 24/7. They also are attracting new customers because the customers can interact fast with a machine than a bank teller. I believe that the bank industry is definitely taking the right initiatives to start with automated banking. For myself I only use electronic banking ever since I set up my bank account. Everyone uses plastic cards or phones now to pay for everything, I believe that banks need to follow the trend and be able to provide new innovative services for the consumers. I suggest that banks have more cyber security measures inline or monitoring so that customers can be assured that their information and bank accounts are secured. I suggest to myself to get more involved with digital banking, because it is going to be more easier and faster with online
To encourage customers to embrace the technology and overcome their trepidations about putting their checks into a machine's slot rather than a teller's hands, banks originally didn't charge customers any fees for using ATMs. (Indeed, in time, some banks started charging customers for not using ATMs, through so-called "human teller fees" - a charge for each time a customer uses a teller for a service that could be performed by an ATM.)
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
Customers prefer ATM with time and cost utility that provides proficient services. Although the drawbacks in ATMs, it is always desirable because it benefits the banks, employees and customers. It is therefore essential for banks to ensure the uninterrupted ATM and well –organized service is provided to customers for best results.
during these operations. One can still charge his or her account without having an electronic card, using the bank
For instance, when making a big purchase, people do not want to be carrying around hundreds of dollars. Throughout the day one might lose some of their money or might spend it on something that they were not intending on buying because it is just readily available. Spending a little extra on a bank to maintain your money will pay out in the long run. When credit card company’s “charge high interest rates if you don’t pay your bill in full by the due date” it can make credit cards a more expensive way to handle your money (Cash Vs. Credit Cards). For big banks, “Some credit cards also carry annual fees just to use them, along with foreign transaction fees, balance transfer fees, and late fees” (Cash Vs. Credit Cards). When people are dealing with large amounts of money paying these fees are nothing compared to getting robbed and someone taking all their cash with no way of getting it back.
Clearing of bank mechanism include collection and payments of cheque, demand draft, payment regulate and dividend warrant etc. it’s a best service offer by the bank. It helps the customers a lot necessary role of commercial bank is to accept deposit and to honor cheque drawn upon them. Typically cheques are used for the payment making to account holder. Collection and payments of instrument are known as outward and inward clearing. During my training in clearing department Mr. Usman help me to improve my learning.
A bank refers to a financial institution that accepts deposits and channels the money into lending activities (Lewis, 2009). Ethics refers to the principles of right and wrong that are accepted by an individual or a social group ((Lewis, 2009).) Conceptually, ethics refers to well base standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues (Safakli, 2005). It’s the integrity measure, which evaluates the values, norms and rules that constitute the base for individual and social relationships, from a moral perspective (Smith and Smith, 2002). It consists of choosing the good over the bad, the right over the wrong and the fair over the unfair. It makes claims about what ought to be done or what ought not to be done (Carse, 1999). Integrity implies not merely honesty but fair dealing and truthfulness (CAJEC, 1992).
Many banks have removed their monthly fees after consumers seriously started questioning what they were paying for. Here are some of the best accounts which don’t charge a monthly fee, regardless of the monthly
Customers also will leave an institution for another based on getting the services they want and the best price available for it, so relationship pricing and product bundling become ever more important. Banks should look at products and pricing based upon a total customer view and respond to the value that customers bring to the bank across the spectrum of rates, fees, features and services. Many banks are now-a-days bundling identity theft alerts and credit score reports with a checking account which provides increased account sales because of the attractiveness of the bundled features. and last thing is, Real time cross –selling/up –selling - Banks can use real-time events and deep customer insight to offer cross-channel marketing campaigns where “moments-of-truth” (wedding, home purchase/sale, new job, stock transactions, etc.) are acted on as a way to deepen customer relationships - to determine the next best action, be it an offer, channel, message, piece of content etc . The more customized product/service offering, the higher are the barriers to switching
One of the reasons why banks adopted this new system, was the ‘boom’ in online shopping and the need for an online payment platform. For the bank themselves, online banking reduces customer service staffing levels, as well as improving speed and flexibility of business transactions. (Shih and Fang, 2004)