WEST
PALM BEACH, Fla. (August 13, 2013) -- Almost every financial
institution offers simple account guides to provide an overview of
checking services and fees, whether these are online account
descriptions or PDF files that potential customers can download.
However, according to new research by Financial
Shop Solutions, the premier service for competitive
intelligence research for the financial services industry, many of
these simple account guides can be misleading primarily because of
the information they fail to disclose, putting more burden on
consumers to look for hidden fees and penalties. That is, assuming
the customer is financially educated or aware enough to know what
information they should have before opening a new bank account.
As
part of its competitive product research, Financial Shop Solutions
has begun researching these simple account guides to give financial
institutions a complete picture of the competitive landscape for
checking accounts. The latest research reveals that these abbreviated
or simple account guides are part of a growing trend among larger
banks to drive consumers toward self-service sales via the web. The
same research reveals that these same institutions are putting more
emphasis on online and telephone customer support and less emphasis
on in-person financial consulting services in the branches. In fact,
many of the branch representatives interviewed were unclear or
unfamiliar with the fees and terms for checking accounts their
institutions offered online.
"We
are seeing a growing trend where banks are looking to cut overhead by
bringing in new business through their web sites," said Mary
Morgan, founder and President of Financial Shop Solutions. "The
result is that account disclosures are being used as sales collateral
designed to attract new business rather than inform customers.
Consumers are not getting the full story about deposit products from
these so-called account guides, and banks are not arming their branch
representatives with sufficient information to be of help."
Financial
Shop Solutions' competitive research reports are designed to give
financial institutions a consumer's perspective on the banking
experience. Based on the latest findings, some experts believe that
the erosion of personalized service coupled with less-than-complete
information about account fees and penalties will fuel consumer
dissatisfaction and drive customers to institutions that offer
better, more personalized service. The online self-service model also
limits the banks' ability to advise consumers about their finances,
and cross-sell and upsell customers through face-to-face interaction.
Those
banks that do a better job of fee disclosure offer specific details
in their simple account guides, including:
-
Monthly account fees and how to waive them;
-
ATM usage fees;
-
Miscellaneous service fees;
-
Overdraft policy;
-
The order in which daily transactions are posted;
-
Terms for funds availability; and
-
Where to get more information about checking account rules and
regulations.
According
to Financial Shop Solutions' Project Coordinator, Larisa Klein,
financial institutions are finding it more difficult to get accurate
insights about competitors on their own using only these account
guides, making it more difficult to better serve their customers.
That's why Financial Shop Solutions has expanded its consumer fee and
deposit reports to provide all relevant product information, as well
detailing non-fee-related mystery shopping findings in order to
deliver a more complete portrait of the consumer's buying experience.
About
Financial Shop Solutions
Financial
Shop Solutions provides competitive market research company to the
financial services industry. The company conducts market studies and
applies extensive industry knowledge to provide trend analyses and
competitive research on deposit products, mortgage products, payroll
services, cash management services, wealth management, and other
financial products. We work closely with our clients to deliver the
most timely and accurate market data customized to meet their
informational needs. Our research and mystery shopping methodology
ensure unbiased, current, and accurate competitive pricing and
analysis.
For
more information, visit http://www.financialshopsolutions.com
or call (877) 578-7467.
-Ends-
Contact:
Mary
Morgan
Financial
Shop Solutions
(877)
578-7467
Tom
Woolf
Woolf
Media &Marketing
(415)259-5638
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