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4 things to ask about your bank

Zachary Brown
Brown

It takes me forever to decide on a purchase. And it is the scourge of my wife’s existence. Whether it be shoes, computers, or electric smokers; I like to do my homework. My current research project is trying to find a decent chef’s knife that doesn’t cost as much as a lawnmower.

However, I don’t know anything about knives or knife making. So, I research it. How heavy should it be? How long of a blade do I need? Which manufactures are known for quality?

If I go into such detail when it comes to a knife, then we should probably talk about what qualities to look for in a financial institution. Therefore, in no particular order, here are some qualities to look for in a financial institution when you find yourself in the market:

Customer Service: Customer service maybe the most important feature in a financial institution. How a financial institution interacts with its customer base, and how the customer wants to be treated is key to finding the right fit. Do you want more availability online or do you want to talk to someone over the phone? If you want to talk to someone are you willing to wait until business hours? What are the business hours? Everyone wants the intimate feel of a local bank until its 11:30pm and some transaction from Lithuania has taken $1,000 out of your checking account and you have to wait until 9 a.m. Monday to speak to someone.

Fee Structure: Every financial institution has fees. The key is finding the institution whose fee structure matches the way you manage your finances. If a financial institution requires large balances in their accounts to keep them maintenance fee free, and you live paycheck to paycheck then that’s not the place for you. Fees are the most complained about feature of a financial institution, but if you can find the right fit for your lifestyle you can minimize their impact.

Community Focus: What are the institution’s priorities? Are they more focused on national campaigns or do they know the needs and ambitions of the community around it? This might sound like a philosophical difference, but it changes the way the institution does business. If you’re a small business owner, then you want to know where the bank’s attention is going to be. If it banks large corporations then a lot of the energy may be spent on maintaining and growing those relationships. Community focus is a phrase that reads right out of a brochure but can have real world consequences.

Product Scope: Can this institution offer you the right types of financial tools for you to be successful? This can manifest in many different ways. What type of online presence does the institution have? Has it invested in features like mobile banking, mobile deposit, bill pay, PTP payment solutions? And that’s before you think about what financial accounts they offer. Does the financial institution offer investment accounts, IRAs, college savings accounts? If you are a business owner, does the bank offer the products that can handle your business now and will it be able to handle and help you grow into the future?

As an AVP of a bank, I think about the other side of this equation every day. Are we attractive enough, are we doing enough to be a great option for the people in our community? And as a consumer I hope you think through your choice well before making a decision about where to trust your finances. Studies show that choosing a financial institution is a “sticky” purchase, meaning when you decide you tend to stay with that decision for a while. So, as we enter our new year if you are in the market for a financial institution, my hope is this might put you in the right mindset.

Zachary Brown is chairman of Junior Achievement of Gaston County.

Want to know more?

These tips are brought to you by your friends at Junior Achievement of Gaston County. Junior Achievement of Gaston County endeavors to put tools in the financial toolbox of our neighbors through financial education. For more information or to help support our mission, please visit htps://www.juniorachievement.org/web/ja-carolinas/gaston-county.