A lot has changed since the early days of banking. There are now a plethora of options for customers to choose from depending on their unique financial needs. This being said, customers’ wishes haven’t changed too much over the years: they desire to view their bank as a partner who helps them accomplish their financial goals while simplifying their lives. While banks are aware of these wishes, they continue to use deceptive tactics which exaggerate their abilities or position, to acquire and retain customers.

How far is too far when it comes to deceptive banking tactics?

While these deceptions don’t typically go against any regulations or compliance measures (banks are smart enough not to do that), they still put financial institutions at risk for destroying their customer trust and loyalty. “In business, the lines between acceptable deception and dishonesty aren’t always that easy to define.” While many of us know our banks are laying it on thick with promises, how far is too far when it comes to deceptive tactics? Of course there are hidden fees, but they also omit vital information which could lead to lawsuits. Perhaps the biggest lie is that banks support their customers’ financial future, which means the customer’s needs should come first. Most of us know this isn’t true—banks are focused on one thing, and one thing only---the bottom line. Sure, they’ll help you refinance a loan, but only because it benefits them in the long run by helping them make more money. Another deception is the emphasis put on being able to do most banking practices, like taking out a loan or opening up an account, digitally. In reality, with most traditional banks, you still must go into a physical branch for these things. Rounding up this list of deception is the classic “we provide you with personalized solutions.” No, they don’t. They have different packages for different people, but these are far from personalized—they’re targeted. Which means that whether you’re Sally or Sue, if you’re both university students you’re getting the same “personalized” package.

Digital acquisition banking

At this stage the answer is simple—if traditional banks want to retain their customers while attracting new ones, they must prioritize authenticity. Customers have too many options these days to stay with a financial institution that deceives them. Next to this, customers are largely inclined towards fintech firms and emerging applications, due to ease at which transactions can be done digitally. Only time will tell, but if traditional banks don’t hurry up, they’re customer base will disintegrate right before their eyes.

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Talk to us: Do you think your bank is guilty of exaggerating as well? Would you consider switching to another financial institution because of this? Let us know in the comments below, we would love to hear from you!

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