Why are people so loyal to their bank

PhilOssophy

I am the 1st to admit that I haven't changed bank since AIB gave me some tatty phone in college.
But now that they are increasing their charges, it got me thinking about changing - and wondering why are people so wedded to their bank to never change?
We all change utility providers, insurance companies, etc all the time.
I can't really see why people bank with the same bank their whole lives, especially now that we never really need to go into a branch so they personal connection is long gone.

km991148

Seen as too much hassle and with little competition (traditionally) why bother.

That is changing now tho.

irelandrover

Changing my utilities or TV requires one form to fill in online.

Changing my bank requires contacting about 20 different companies. And for very little reward.

Smee_Again

People think it's a lot of hassle to switch bank accounts, and they think all banks are the same.

I spent 10 years working in retail banking and these were 2 biggest obstacles to getting customers to switch over.

Its a long time since I worked in an Irish bank but back in 2007 or so when the switching code was introduced switching was a nightmare and would go wrong for the majority of customers, neither banks or utillity companies really understood how the DD systems were set up so moving the Direct Debits from one account to another caused a lot of hassle. It may have improved since but I've no idea.

In 2010-2014 in the UK it was seamless though, a very easy process.

donspeekinglesh

I still get free banking. That's the only reason I haven't moved. Have moved before though - my wife and I were with Halifax and had to move when they closed, went to UB, and moved from there when they started charging fees.

Yourmama

irelandrover wrote:

Changing my bank requires contacting about 20 different companies. And for very little reward.

That's popular misconception and I thought the same until I finally decided to change bank after 15 years with BOI. I filled two forms, that's it. My direct debits were changed for me by bank.

irelandrover

Yourmama wrote: »

That's popular misconception and I thought the same until I finally decided to change bank after 15 years with BOI. I filled two forms, that's it. My direct debits were changed for me by bank.

Mine weren't when i changed banks 1,5 years ago.

Mimon

Yourmama wrote: »

That's popular misconception and I thought the same until I finally decided to change bank after 15 years with BOI. I filled two forms, that's it. My direct debits were changed for me by bank.

Ok, didn't know that! Cheers.

Was looking at a credit union current account but thay charge 4 euro pm vs the 6 pm for BOI from next year. Not sure if it's worth the hassle to save 24 euro a year.

Jim2007

PhilOssophy wrote: »

I can't really see why people bank with the same bank their whole lives, especially now that we never really need to go into a branch so they personal connection is long gone.

You are confusion loyalty with our preference for convenience and the fear of change.


I have never heard a client defend their bank in the way that say Mac or Windows users argue or girls argue over cosmetics etc.... finance is just not a sexy subject.


I think it begins in school, we don't teach kids about personal finance apart from a bit of math and the result is that people are faced with having to make very serious decisions without the tools to do so. Most people get the piece about bad financial decisions having a negative impact on their lives, but the are clueless as to how to deal with it. So having found a solution that works for them, it a sense of relief rather than satisfaction - glad I don't have to touch that again.....


And of course the only people we hear from are the cases where it goes wrong, which only confirms people's fears.

The J Stands for Jay

AIB came into my school when I was in 1st class and gave everyone a moneybox and set them up with a savings account with £1 in it. They converted it to a current account when I was 17 or so with just a visit to my local branch, no forms needed. I stayed with them until they annoyed me, but I imagine that loads of my classmates are still with them because there was never any effort involved in staying with them.

I've used AIB, Ulster Bank, Halifax (until they closed, 10% interest on current account balances seems like a crazy dream now), PTSB, KBC, N26 and now Bunq. I won't put up with any annoyances or lack of functionality with a bank.

garrettod

Hello,

I don't think that people are loyal to their bank, so much as they are too lazy, or not well enough informed, to move.

Moving day to day current accounts, savings accounts, credit cards etc isn't a big deal. Hornet, the difference in cost can be significant, particularly if you consider it over 5-10-20 years.

Then we come to Homeloans - anyone who (can, but) doesn't move their Homeloan, to avail of a cheaper rate, needs their head examined. The differential in costs can be massive, over the life of the loan.

When we all consider how hard we work, to earn our salaries, why give away so much more than we have to, every year?

beauf

PhilOssophy wrote: »

...
But now that they are increasing their charges, it got me thinking about changing - and wondering why are people so wedded to their bank to never change?...

Because many of them are really bad. They poach people with cheaper offers then change the conditions. Leaving you with same prices, just worse service.

McGaggs

McGaggs wrote: »

AIB came into my school when I was in 1st class and gave everyone a moneybox and set them up with a savings account with £1 in it. They converted it to a current account when I was 17 or so with just a visit to my local branch, no forms needed. I stayed with them until they annoyed me, but I imagine that loads of my classmates are still with them because there was never any effort involved in staying with them.

I've used AIB, Ulster Bank, Halifax (until they closed, 10% interest on current account balances seems like a crazy dream now), PTSB, KBC, N26 and now Bunq. I won't put up with any annoyances or lack of functionality with a bank.

Same here. Bank of Ireland gave me a miniature radio for opening an account in 1st year of secondary school. Been with them ever since.


You'd have to assume the school (or the Principal at least) was coining it in. Bank of Ireland didn't even have the hassle of pretending to give a financial literacy class or such. Just set up a few tables with a load of application forms and a few radios or whatever novelty they could get cheap, and watch hundreds of people sign up in one afternoon.

pgj2015

I changed my bank after they tried to screw me for extra money. I was with them about 30 years.