Across the nation’s banking landscape, big banks are growing fast and offering more services and bank tools than ever before. As they come up with better and faster ways of banking, they are also improving ease of access and peer-to-peer banking as well as including a larger portfolio of products and add-on services. Given all these advantages to big banks, however, many people are rightfully suspicious of their intentions as they have been known to conduct some predatory business practices. For example, there are plenty of “hidden” fees they conveniently forget to mention, like Wells Fargo checking account fees or overdraft protection fees. So you’re considering a new banking institution, take a look at our list of pros and cons of using big banks.
Pros:
- Potential Convenience
One of the biggest advantages of big banks is coverage. Most big banks have thousands of branches not only in a city but across the country as well. They offer one-stop shopping, allowing you to get multiple services from one branch. With digitalization, big banks can also provide convenience and comfort to use their banking services at your fingertips. For instance, you can use one login for checking and savings accounts, credit cards, and loans.
- Customer Service
Many big banks offer convenient and comprehensive customer services because of their up-to-date technologies that decrease wait times. For example, if there is an issue with your account, you can simply contact them via a messenger app and they simply search it on their online database and rectify the issue promptly.
- Various Financial Services
Following the financial crisis, big banks now offer brokerage services with loads of investor features. This is good for high-net-worth individuals as they can access trust officers and estate planners along with brokers to buy and sell stocks and bonds.
- Cutting Edge Technology Tools
Big banks have pioneered remote check deposit, online banking, 24/7 mobile banking, audio recordings for electronic copies of any disclosures of services or change in service provision patterns, and advanced ATM features like talking ATMs.
Cons:
- Higher Fees
Big banks have higher charges for their services. Big banks like Wells Fargo charge a ton of different fees that you probably had no idea you’d have to pay. Many people consider these predatory and would prefer a credit union because they know that those types are banks are not out to make a profit from other people’s money.
- Harder to Navigate
Big banks have rigid systems and processes and they are not always easy to work with. While their customer service may have better technology, it may also be difficult and tedious to get in touch with an actual person if you have a specific or unique situation. If you need help from customer service, you may have to answer the same questions multiple times just to open an account as big banks have high staff turnover and often outsource these services. This may remove the personal touch that many customers are looking for from their banks.
