Switching Banks - why bank does not try and keep good custom

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wheeler

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Context:
15 years ago I rang my bank (well know indigenous bank) and told them that I would be closing my account and moving elsewhere to avail of free banking. Fees were immediately removed from my account.

6 months ago, I rang the same bank and informed them that I would be closing my account and moving elsewhere to avail of free banking. They said no problem and would send out the relevant forms to close the account. I then started the process to switch banks with an expectation that I would get a call once they could see I was serious but the call never came. So in the end I continued the process and switched banks.


Opinion wanted: I can't fathom why the bank would not make an attempt to stop customers from switching banks. I don't have an overdraft, no loans other than a mortgage account with them, I had decent savings with them (- a heck of a lot more than I had 15 years ago when they fought to keep my custom).

Any ideas or facts out there that would explain this decision to just let people move on.
 
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Totally different banking culture now to 15 yrs ago. Loyalty to a bank or customers means nothing anymore in banking. You have no loans, no overdraft, maybe getting good rate on your mortgage and savings with them, they probably don't want you, you are not a good moneymaker. Now I doubt anyone that spoke to you even considered that though, different staffing system in place these days too.

What's the benefit of keeping you as a customer, you want free banking and are not availing of any of their high cost products. Just being devil's advocate here!
 
Can depend on the Bank;

Some Banks are obviously looking for the Consumer type customer and have lesser fees to attract them.
Some Banks know that most people suffer from consumer laziness,so unless the consumer feels the fees are onerous and take the bother of moving the Bank is happy to keep your account and to keep charging.
Banks are able to get ECB funds @ .5% ,so arn,t too worried about your savings.
Banks decision probably makes business/profit sense for them.
In the fluffy times consumers thought they were kings. Now Mr Bank is doing what he should always have done ie ensure his accounts make him profit.

Banks are there to make profit, in no way are they now or indeed ever were social partners.
If their terms do not suit any consumer, do as wheeler has done ie change.
 
wheeler said:
6 months ago, I rang the same bank and informed them that I would be closing my account and moving elsewhere to avail of free banking. They said no problem and would send out the relevant forms to close the account. I then started the process to switch banks with an expectation that I would get a call once they could see I was serious but the call never came. So in the end I continued the process and switched banks.
Click to expand...

These days the banks have the tools to identify profitable customers, so it looks like you are costing them money and they are happy to see you go...
 
Didn't think of it like that...
Yes - you are right, I'm not making them money at all at the moment. Mortgage is tracker as well.

However, why does PTSB (main bank pushing the switch) want people like me then? The way I see it I am a potential future money spinner for any bank. Whoever my bank is - I will go to them first for any future loans, mortgages, etc. My age range will show them that there's a lot of mileage in that direction still.

In fact - my mortgage remains with the current bank so they will continue to lose out. And any new products I take out will be with the new bank and they will make money off me.


Anyway - thanks for your comments. I can at least see some sense in why they are letting customers leave.
 
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15 years ago I rang my bank (well know indigenous bank) and told them that I would be closing my account and moving elsewhere to avail of free banking. Fees were immediately removed from my account.

6 months ago, I rang the same bank and informed them that I would be closing my account and moving elsewhere to avail of free banking. They said no problem and would send out the relevant forms to close the account. I then started the process to switch banks with an expectation that I would get a call once they could see I was serious but the call never came. So in the end I continued the process and switched banks.


Opinion wanted: I can't fathom why the bank would not make an attempt to stop customers from switching banks. I don't have an overdraft, no loans other than a mortgage account with them, I had decent savings with them (- a heck of a lot more than I had 15 years ago when they fought to keep my custom).

Any ideas or facts out there that would explain this decision to just let people move on.
Click to expand...

It's a common theme these days. Probably also worth mentioning that they have systems in place to automate the transfer of customers, so standing orders and such are automatically setup on your new account. 15 years ago switching bank was a bit of a headache and they knew you wouldn't want to/bother if they offered you a little something to sweeten the deal.
 
Wheeler;

Ptsb seem to be looking at that younger set, what you bring them is ,as you identify,
1. No tracker mortgage.,
2. Nice clean savings.
3. Future ongoing profitable business.
4. They have to grow their book , so you are an inexpensive catch.
If they can make even a liitle profit from you over the next 15 years , you are both happy.
 
Banks are a dysfunctional mess when it comes to identifying valuable customers. I have a sizable sum on deposit with one bank. I get letters in the post about how I am in some special "valued customer" category. Every few months I get a phone call from someone just "touching base" to see if I have any banking needs they can help with. Every few months I also get a letter saying that my contact person for my banking needs, should I have any, has changed. That's followed by another phone call from someone else I've never heard of. Meanwhile, when I visit a branch there isn't even a customer services desk anymore where I could announce my special "valued customer" status or remind them how they used to ply me with tea and biscuits in the boardroom, instead of having to join the lengthy queue for a surly teller along with everyone else. I've had pretty much the identical experience in another bank where I also have large deposits. Now, I don't want tea and biscuits in the boardroom, nor do I want to skip the queue -- I've no time for eejits fawning over people just because they have money. But I think it's particularly risible that they think having the computer spew out a list of people to call is some sort of replacement for treating all customers like human beings whether they had a pound or a million in the bank.
 
I know! By the time I finished working in a bank they had gone to the business model of get rid of all customers coming in and spend your time phoning customers trying to get them in while ignoring the actual ones that were coming in. Called 'prospecting', trying to find another poor sod to flog some product or other to, nicely couched as a 'free financial review'.
 
I went in to switch my banking the other day.
I went to customer service to see what where my options and could i make an appointment to sit down and discuss a few issues with someone to ensure current acc/ credit card / loan etc were all switched.

They said we don't do appointments just come in and queue and whoever is on the desk will take you through it and goodbye.

I haven't returned.
 
It would be nice to go back to the old days when we got paid in cash and we didn't need a bank
 
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