Banks like to think they’re easy to use.
Wells Fargo offers a “simple business checking account,” while Bank of America’s credit cards “simply slash interest fees.” There’s even a bank called Simple in Portland, Oregon.
The internet is flooded with stories of people who love their bank, and wouldn’t change a thing.
These people don’t know easy.
Banks have had a monopoly on the financial industry for so long, that we’ve just come to accept what they’ve told us.
We’ve normalized mediocrity.
But, times are changing.
Fintech startups and innovative technologies are springing up around the world to expose the cracking foundation of the banking industry.
Banks don’t really care about your experience.
They love to talk about a “personal touch” by providing your own personal financial advisor and other services. But, when it comes to the average everyday user doing average everyday things, the experience couldn’t be more complicated.
In a 2017 report by The Financial Brand, it was found that “delivering a positive customer experience has become secondary to other bank priorities, resulting in a transactional banking relationship for the customer.”
This is bad news for banks, as the report also revealed that creating a positive customer experience was the number one trend cited by global business leaders.
The idea of “customer experience” covers a lot of ground, and is notoriously difficult to measure. But, a few innovations made by other finance companies may make a world of difference.
A big one for many customers is knowledgeable, end-to-end customer support. In another report by The Financial Brand from 2013, they found that most banking complaints involved core services such as checking, debit cards, credit cards, and mortgages. It isn’t rocket science.
In another report by The Financial Brand from 2013, they found that most banking complaints involved core services such as checking, debit cards, credit cards, and mortgages.
Yet, many customers reported unsatisfactory complaint handling. Similar recurring complaints don’t incite change, and are often shrugged off.
Bottom line: banks aren’t listening to their customers.
But, while support is a big issue for many, there’s another problem sweeping the banking industry.
Refusing to embrace the digital.
This is the most glaring issue facing banks today. While the world takes digitization and the online space head-on, large financial institutions can’t seem to keep up.
Or, maybe they don’t want to.
Simply making online banking an option is seen as a leap forward because they dominate the financial space. Banks can do the bare minimum and see no consequences. That’s because customers don’t have anything to compare to.
Big banks are notorious for taking too long to adopt digital trends, and doing so poorly.
There are a ton of stories of people struggling to navigate clunky websites. Chase is the number one offender. Chase-Sucks.com has compiled hundreds of complaints from customers across the US. While there are many, the online banking format takes the top spot.
When they aren’t crashing, banking websites often make customers click and scroll through a maze of useless services and promotional offers until they finally get to where they need to be.
The process is complex, time consuming, and far from simple.
Checking your statements and balances has become so convoluted that customers might as well just drive over to their bank.
When your website is more time consuming than standing in line, there’s a problem.
But, digitization isn’t all about a website. Many banking services have yet to take advantage of the speed, security, and reliability of technology. In their eyes, analog is still the way to go.
The process needs an upgrade, especially for small businesses.
The world is shrinking whether we like it or not.
From remittances to paying global suppliers, people need reliable, safe, and fast ways to send money internationally.
It isn’t all the bank’s fault, but they aren’t exactly pushing for innovation to make the process better.
Traditional regulations built for an analog system are still in place. While finance tries to embrace digitization, governments cite privacy concerns and loss of funds as factors in keeping the status quo.
The banks say that the current system is simple, and avoids these issues.
That is simply not true.
Not only can bank wires cost up to $50 per payment, funds are often lost, and the security of the transaction method has been questioned for years.
Though it would improve customer experience, lower fees, and make the process more secure, the cost of adopting new payment methods is too steep for banks.
Where banks see hurdles, fintech sees opportunities.
Banks have failed their customers for too long, and don’t seem to be improving.
Companies like Veem are exposing the false advertising of banking simplicity by offering honest and simple payments.
Veem is built for small businesses. We help you send international payments securely, cost-effectively, and simply.
Our stellar customer success team and intuitive dashboard lets you track your funds all the way to its destination. Never lose another payment.
Sign up today and find out what it really means to transfer simply.
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