Yahoo Finance 6 Signs Your Bank Isn’t Keeping Up With the Times
There is certainly no shortage of banks in the U.S. — and variety is growing, with more digital/online-only banks and neobanks popping up. Banks strive to provide competitive edges and are always working toward the goal of being the best destination for your money.
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To build and maintain appeal, banks must evolve along with consumers. They need to understand emerging technology, elevating trends and the constant happenings of the economy at large. But no matter how hard they try, banks can and do fall behind the times, and experts say they do so in the following ways.
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They Have Inadequate Security Methods
One way in which some banks are behind is a dangerous one: They have inadequate security methods.
“Your bank should offer two-factor authentication, biometric log-in and regular security updates,” said Chad Gammon, financial planner at Arnold and Mote Wealth Management. “A simple log-in page does not cut it anymore.”
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They Have Weak Mobile Options
Consumers are increasingly glued to their smartphones, and they should be able to easily and safely access their bank accounts through their mobile devices.
“If your bank has a clunky or unreliable mobile banking application, then it could be a sign your bank may not be investing in the necessary technology to meet customer expectations,” Gammon said.
They Make You Visit a Branch
People are busy. Commuting is expensive. Who wants to have to drive or bus it all the way to their banks just to get something done? If your bank requires you to come into a brick-and-mortar location to handle a matter, it is behind the times.
“Since practically everything you need can be accomplished digitally, from opening an account to making a large transfer, requiring branch visits is a sign that your bank has inadequate technology infrastructure required to support today’s customer preferences for business and consumer banking, alike,” said David Quinn, CFO at BlueVine.
They Have Outdated or Inflexible Fee Structures
Another key sign that your bank is not keeping up with the times? Outdated or inflexible fee structures.
“If your bank is charging you fees for routine transactions or lacks competitive interest rates, it may be time to consider switching to a more forward-thinking institution,” said Dre Villeroy, CEO at Beyorch. “A bank should be willing to adapt to the changing economic climate and offer innovative products and services that align with your needs.”
They’re Not Transparent
Most every consumer deeply values transparency nowadays.
“If your bank isn’t transparent with its policies or doesn’t provide comprehensive financial planning resources, it may be a sign they’re not keeping pace with the times,” Villeroy said. “Modern banks should offer easy access to financial education, personalized advice and tools to help you achieve your financial goals.”
They’re Still Investing in the Fossil Fuel Industry
As more people become concerned about climate change, they’re increasingly steering clear of the fossil fuel industry. We’re seeing this most profoundly around young people, many of whom are avoiding jobs in the field.
In the opinion of Terra Neilson, chief impact officer at Beneficial State Bank, banks that are still investing in this industry are not thinking long term enough to be modern.
“The world’s 60 biggest banks have continued to invest a whopping $5.5 trillion in the fossil fuel industry over the last seven years since the Paris Climate Agreement was signed,” Neilson said. “This is dangerously shortsighted. Banks should divest from outdated and harmful extractive industries and instead shift their investments toward the burgeoning clean energy transition. It’s good for the planet, but it’s also good for business. With billions of federal climate investments flowing, most recently from the Greenhouse Gas Reduction Fund, clean energy is a lucrative and growing market.”
This insight points to the fact that banks need not only to be keeping up with the times, but also keeping in tune with what the future may bring.
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This article originally appeared on GOBankingRates.com: 6 Signs Your Bank Isn’t Keeping Up With the Times
