It is in most of our interest to improve the liquidity of our financial information. Technological advances around identity biometrics and verification combined with the secure data elements on our smartphones allow us to carry vast amounts of data. Now that physical transport of these records is not a concern, the legal transfer of accounts between repositories (banks) must be expedited to fulfill what many consider a driving force of the U.S. economy, the unfettered customer.
If financial institutions knew that customers could easily walk away when treated badly, they would be incentivized to compete for their customers’ loyalty. The price of overdraft, over-limit, and late fees, as well as other contingent fees, would also likely come down. Small banks and credit unions could also find it easier to attract new customers in their communities by making it easier to carry over the customer’s financial transactions. Finally, greater competition would motivate banks to better serve the nearly 16 million adults who have no bank accounts at all.
Mercator Advisory Group’s coverage of the fluid frontier between Financial Institutions and Consumers reveals momentum building across the customer side, with greater pressure being brought to bear with demands of individualized services and flexible rules. We anticipate the wide majority of these types of gains would spring from a level playing field for all financial institutions to compete for customers through price and value. This will involve the enforcement of existing regulations and increased oversight in tandem with programs promoting financial literacy to for our citizens.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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