By Claire Moraa
- 58% of customers feel that their banks could do more to guarantee their total satisfaction
- It’s now easier to securely share banking information with third-parties for new experiences
Long data transfer processes when switching from one bank to another will no longer be the order of the day. Now, you can close one account in one bank and open another one in the same day with all your banking history transferred. With open banking now available in the U.S. you have the power to hire and fire your bank if they’re not meeting your expectations. And with 58% of people in the U.S. showing dissatisfaction with their financial institutions, this could be a wake up call.
Why This Matters: For many, security is a major concern when selecting a bank. The fraud risk level will significantly influence consumer choices so if a bank’s fraud risk rate is high, consumers will be compelled to seek a financial institution with stringent security measures. For instance, nearly 60% of banks, fintech companies, and credit unions experienced direct fraud losses exceeding $500,000 in 2023. And with the fraud rates rising, banks may raise fees for accounts and services to cover losses from fraud–impacting customers’ overall banking costs.
Unfortunately, transferring from one bank to another has been a time-consuming process but thanks to the Consumer Financial Protection Bureau (CFPB) new rules, the process has now been simplified and the power has been handed back to the consumers. We’re likely to witness competition among banks especially in their offerings in better financial products and services for consumers. Higher interest rates on deposits, lower fees, improved customer service, and innovative digital banking features are likely to be on the menu for your bank as they try to keep the relationship alive.
What’s Next: With the client holding all the cards, you can expect banks to step up their game and enhance their offerings to compete for your money to stay competitive in the market. It’s a good opportunity for consumers to shop around and take advantage of the best deals and services available.
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