It has become quite difficult to choose a bank in today’s world to meet the financial requirements. The banking sector has changed drastically than it used to be a few decades ago. It has to be noted that this industry spends a lot on technology. This initiative has made it possible to offer people with more facilities than just taking deposits and giving loans to businesses and individuals. Consolidation has helped a lot in lowering the costs for customers however; the need for a local and personalized service would always be there. Following are some of the overview of how banking has changed over the years and the options that remain available for you:
Types of Banks
Different types of banks can be seen nowadays. Where there are money center banks having a national presence, there are regional competitors of these big banks as well. Some banks also have local branches that cater to a large group of people locally.
The Benefits of Going Big
Different kinds of banks have different kinds of advantages. The money center banks, which are a recent phenomenon, have more advantages than the other types of banks. They have made it possible to transfer funds from one bank to another or one location to another within a short time. The online banking facility is a great boon for the customers as they can now do any kind of transaction, shopping, etc. at any time. These money center banks could keep the ATM fees and other transactional costs low as well.
Advantages of Staying Local
Many customers are there who still prefer to stick to the banks that offer personalized services. They want to do transaction face-to-face. In this type of banking, a special relation develops between the customers and the banks. Such banks possess as a tough competition to the big banks. This kind of competition is felt in rural areas specially.
Banking Hours No Longer Apply
The term ‘banking hours’ has lost its way somewhere. Nowadays, banking is not fixed to the time frame of 8 hours of 9 a.m. to 5 p.m. Now, most of the banks remain open for most parts of the day. Online transaction allows people to do transaction at any point of time. However, the actual fund movement is restricted to the business hours for now.
Traditional type of banking is no longer applicable now. Nowadays, the banks do not restrict their income only from the interest rates they charge for loans. They are earning profits by several other means like charging for ATM withdrawals from other banks’ customers, on overdrafts, portfolio management services, providing brokerage accounts, selling insurances, etc.
Thus, it can definitely be said that banking has changed over the years to a great extent. They provide a lot of services by charging nominal fees now. A person would choose among the different banks the one that offers the best services by charging the lowest fees. Thus, different banks should check what they could do more to attract the attention of new customers.