Personal Finance

Is bank loyalty important these days?

  • Last Updated:
  • Feb 26th, 2010 11:17 pm
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Deal Expert
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Feb 9, 2003
17868 posts
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Langley
Bank loyalty is unimportant. They know that most people are too lazy to leave.

Not only that, but since each bank's risk assessment for loans is different, and changes constantly, you'll get the best rate from a random bank each time you renew your mortgage or get a different credit product.

When the random bank that gives you the best rate happens to be your own bank, that's just a fluke. Of course, most people don't realize that, so they go on message boards and claim that it was their relationship with the bank or bank manager that got them the better rate. The bank manager is more then happy to play along.
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Jul 1, 2007
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Just Confused wrote:
Apr 22nd, 2009 1:31 pm
A relationship with any consumer organization only matters if the relationship is with someone that has the power to make decisions or the authority to take certain actions.

Most Canadian banks have already or are in the process of regionalizing or nationalizing their decision making. You apply for anything and the local branch submits your application to someone in a major centre to make the decision based only on numerical criteria not a personal relationship with you.

A branch manager these days doesn't have much authority or dollar limit to approve anything. So a relationship with a teller, account manager or branch manager is only useful up to their limit. They can clear a cheque early or some other low risk dollar value transactions based on the local relationship. However, as already pointed out these people are rarely in these positions for more than a few months before they disappear. They almost defy you to have a relationship with anyone at your branch.

Consolidated record keeping is one benefit, but not one I particularly value.

You must weigh those minor benefits against all the negative risks of associating with one institution, you're putting all your financial eggs in one basket. When Murphy strikes... and he will... especially when you need some unusual service, you're hooped. If you have accounts and business at multiple institutions you can insulate yourself from the crisis in one area spreading to other areas of your financial life.

So I concur with most of the other posters that a relationship at a bank is not particularly useful or valuable.
Centralized credit approval and administration actually frees up a lot of time for bank reps to spend developing customer relationships.

There still is a lot that goes into a credit application on the branch side. The difference can be:

No relationship - Entering the customers information on a computer with some half-assed comments stating material facts. Smile and give customer thumbs up and tell them don't call us, we'll call you.

Full relationship - Customer calls bank rep and tells them what they need. Bank rep gets whatever information they need from previous credit apps and whatever they don't have they can omit on "exception" due to the customers' strong relationship with the bank. Detailed notes accompany the credit app, either including a sappy story about why the customer should be approved for the credit. Customer is called a few days later and all paperwork is ready for them to sign.
Member
Dec 3, 2003
216 posts
28 upvotes
I agree with Thalo - I used to think banking relationships weren't important due to high employee turnover, but my Mom's banker who she's known for years forwarded my CIBC Aerogold Infinite Visa application to their centralized Dept and I was approved even though I didn't meet the income requirement by quite a bit. I also had no prior banking with CIBC.

I'm positive I would have been rejected without her knowledge of how the systems work and what to include with credit applications.

Actually, I'm more inclined to believe in account mgr rather than bank loyalty if they stick around!
Thalo wrote:
Apr 24th, 2009 2:02 am
Centralized credit approval and administration actually frees up a lot of time for bank reps to spend developing customer relationships.

There still is a lot that goes into a credit application on the branch side. The difference can be:

No relationship - Entering the customers information on a computer with some half-assed comments stating material facts. Smile and give customer thumbs up and tell them don't call us, we'll call you.

Full relationship - Customer calls bank rep and tells them what they need. Bank rep gets whatever information they need from previous credit apps and whatever they don't have they can omit on "exception" due to the customers' strong relationship with the bank. Detailed notes accompany the credit app, either including a sappy story about why the customer should be approved for the credit. Customer is called a few days later and all paperwork is ready for them to sign.
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Jun 11, 2001
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I would say loyalty only gets you faster processing that is it... may as above bypass a few credit checks (which may be a bad thing).

Personally, knowing someone on the "inside" is a better proposition, they'll give you direct rates and no "bs".

So yeah, I have no loyalty... I was with CIBC for the longest time then switched to BMO because CIBC couldn't match any rates. -sg
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Deal Addict
Mar 14, 2005
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Are my numbers correct.. am I reading that you have SIX (6) VISAS
Deal Expert
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Feb 9, 2003
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Langley
It isn't like you can have too many credit cards. I have 7 credit cards. Every few years a better one comes along, and cancelling the old ones lowers your score. What's important is that you use the credit responsibly.
Member
Mar 30, 2009
374 posts
52 upvotes
Toronto
I would say that like most other corporations, banks will do more to gain new people, and retain existing people, than they will to please people. Of course there all the promotions for new people but also that often if you have accounts with a bank but stop actively using them (and as a result, no longer give them money) you may start seeing more offers from that bank to retain your business than if you were actively using them.
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Apr 13, 2003
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Thalo wrote:
Apr 24th, 2009 2:02 am
Centralized credit approval and administration actually frees up a lot of time for bank reps to spend developing customer relationships.
I've been really pleased with TD lately. I have been dealing with a two people there regarding some investments and mortgages, and they genuinely seem interested in working with me to reach my goals. Also, when I go in to do some day to day stuff, they remember my name, and ask how my house hunt is going. I know this doesn't matter to a lot of people, but I find good customer service so hard to find these days, I really appreciate it when it does exist.
Deal Addict
Nov 11, 2004
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Ottawa
new_vr wrote:
Apr 30th, 2009 10:13 pm
I've been really pleased with TD lately. I have been dealing with a two people there regarding some investments and mortgages, and they genuinely seem interested in working with me to reach my goals. Also, when I go in to do some day to day stuff, they remember my name, and ask how my house hunt is going. I know this doesn't matter to a lot of people, but I find good customer service so hard to find these days, I really appreciate it when it does exist.
Td is the best bank though
Hello
Sr. Member
Jan 10, 2008
999 posts
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Toronto
ilusa wrote:
Apr 30th, 2009 10:48 pm
Td is the best bank though
That is your opinion, not a fact.
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Jul 1, 2007
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MoreMiles wrote:
Apr 30th, 2009 11:15 pm
That is your opinion, not a fact.
No, it is proven fact. Just ask JD Power and Synovate... :razz:
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Mar 23, 2004
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ilusa wrote:
Apr 30th, 2009 10:48 pm
Td is the best bank though
Thalo wrote:
Apr 30th, 2009 11:49 pm
No, it is proven fact. Just ask JD Power and Synovate... :razz:
well at least the best out of the big 5 :lol:


TD Canada Trust has been ranked "Highest in Customer Satisfaction Among the Big Five Retail Banks" Three Years in a Row by J.D. Power and Associates. *
* TD Canada Trust received the highest numerical score among the big five retail banks in the proprietary J.D. Power and Associates 2006-2008 Canadian Retail Banking Customer Satisfaction StudiesSM. 2008 study based on responses from 10,823 retail banking customers measuring 5 banks. Proprietary study results are based on experiences and perceptions of consumers surveyed in March-April and June-July 2008. Your experiences may vary. Visit jdpower.com
[OP]
Deal Addict
Nov 18, 2008
3271 posts
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The reason I raised this question was because I was a loyal customer to RBC for many years and after more than a decade of a relationship, a new account manager simply collapsed it all. The deals I had negotiated previously were no longer honoured and the new AM simply was not responsive nor helpful for any of my concerns, and yes I'm still bitter from it as it seems after so many years of "loyalty", they just leave me out to dry one day.

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