Don't Cling To A Bank You Don't Love

The article homes in on a predicament many consumers face, that it is seen as easier to stay with a FI that does an adequate job on the grounds that switching will be a hassle.

I bet there’s a good chance you feel the same way about your checking account. Maybe you signed up for it because of geographic convenience, or at least whatever was convenient a decade ago. Convenience isn’t bad when it comes to banks, but if your lifestyle has changed since then or you’d like your dollars to go further, you may want to start looking around.

The subtext is that it is somewhat of a hassle, especially if you have set up automatic ACH and debit transactions to pay regular bills such as student loan payments, utility bills and the like. But what is moving your financial life were like taking your personal mobile phone number to a new carrier? Improving the transferability of our financial profiles while retaining the security of the same is still knot to smoothed, but in doing so would enhance consumer transportability and drive competition, which should drive down fees and improve saving rates. The first time will likely be a hassle, but once more consumers have figured out the subtleties in the initial effort, they will likely be like the author, undertaking the shift again within five years.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

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