How to Know When It’s Time to Switch Banks
Let’s explore some life changes and turning points which may signal that it’s time to switch banking partners.
Whether it’s a major life change, a shift in your financial goals, a move across country or something else, switching banks can oftentimes be a necessary occurrence throughout a person’s lifetime. Let’s explore some of these life changes and turning points to recognize if and when it’s time to switch banking partners.
You’ve experienced a recent life change
One of the main factors we see when people change banks is because of a recent life change. Some of the more frequent life changes we see that can impact a banking relationship include:
If you and your partner bank at different places and want to combine finances, you may want to move to one preferred bank to streamline finances or find a new one altogether.
Death in the family
A death in the family could impact your financial needs and force you to switch banks simply based on the situation at hand.
Oftentimes during divorce, finances are top of mind for couples who now need to separate their finances.
You likely banked where your parents did early on in your banking journey, so simply maturing and understanding your own banking wants and needs could impact a switch.
If you receive a large sum of money from a loved one that has those finances at one institution, it may be easier to switch your personal finances to that institution, versus opting for a financial transfer.
You’ve moved or switched jobs
The location of your bank is oftentimes the first factor you look for when finding your bank or deciding to switch banks. Whether you’ve switched jobs, moved down the street or to a different city entirely, moving can prompt you to look for a new financial institution. People typically don’t want to spend time commuting to their bank’s branch or ATM for in-person transactions. With the advent of online and mobile banking, this has become less of an issue for many.
You’ve had a negative customer service experience
Not surprisingly, a bad customer service experience could be a major reason a person decides to move banks. Customer service and a quality experience is critical to building trust and creating customer satisfaction and loyalty. Often, people will leave because of people. If a person’s bank has had a significant amount of turnover or has made errors, they might grow mistrustful. Alternatively, a good customer experience can be great for retention and loyalty and can also help drive positive word of mouth and customer referrals for their friends and family.
You’re shopping for the best rates and offers
If you’re looking to make a large purchase or are considering switching banks, shopping for rates and new product offers is a great place to start. Different financial institutions have access to various loan rates and leverage marketing to grab customers attention. If a bank’s branch and its products and services match what you’re looking for, an added incentive or offer could be the reason you join as a new customer.
With more than 4,000 banks in the U.S., there is no shortage of banks. However, each bank offers something different based on size, location, products and services, customer experience, offers and more, which means it is important to be thoughtful about who you select as your partner. And while certain life changes can force someone to switch banks, ensuring your bank is providing quality customer service and competitive offers can help make that decision clearer.