Forum Post: banking 101
Posted 12 years ago on Nov. 2, 2011, 6:52 p.m. EST by bankerboy1
(7)
from Frederick, MD
This content is user submitted and not an official statement
After years of working in the banking industry, Nothing speaks louder to a bank as when customers move their money out.
Almost all banks pull a deposit/withdraw report every morning to monitor such transactions. As a branch manager, if I saw anything larger then a $10,000.00 withdraw, I was on the phone with the customer asking if everything was OK or is there anything I can do for them........kissing their butts
The banks are terrified of this!!!
The whole commercial banking industry and WALL Street would come to a halt if people moved their money to a tin can or C/U as they wouldn't have any money to lead and make interest on.
So you say O'no we can't do this because we won't be able to get any loans, Well they aren't lending us our money that WE helped them out with anyways, and OBTW most of the banks that took the bail-out didn't even need the $$$, however, they barrow it anyways because they in turn made money off of it because of it's low interest rate. They barrow low and lend HIGH.
Food for thought, when a customer comes in to open an annuity of $100,000.00 or more. The branch manager gets a $10,000.00 bonus right of the top before the money even gets a chance to earn any $$$ for the customer. Now the employees under a branch manager are paid peanuts and you should feel sorry for them, however the branch manager and up ARE NOT hurting for $$$ at all; regardless how much the banks cry. The crying banks do this so the general public feels sorry and agree to the banks terms.
Believe me, the banking institutions are making $$$ hand-over-fist!
They teach us in Banking 101 to get the customer involved in as many products as possible....Credit cards,bill pay, investments & CD's... etc because they have proven that the more products the customer have, the less likely they are to leave the bank because of the inconvenience of closing and moving everything!!!
So the next time your bank so kindly offers you a GR8 offer, it is to ensure that you stay even when you really want to leave!
I remember back in 2008 when people where coming in left & right to close their accounts, the bank was in a panic because the customers where asking for CASH instead of a bank check when they closed their accounts. Asking for cash will bring a bank down very fast because cash is here and now. Remember your money is tied up making money for them and when they have to pay physical cash instead of a check, that sends the bank into a tail-spin to pull CASH out of THEIR investments! It is the same as when you want cash from stocks you own. First you have to sell them ( an hope they market is having a good day) and wait for the money to hit your broker account, this all takes time, however the banks are required to give you YOUR $$$ the minute you ask for it; That is the LAW, so they may have to sell their investments at a lost to come up the CASH.
Now you see why I say this would cause them to go into a tail-spin!
Again, If you want banks to lessen to you, close your accounts and move your, and I repeat YOUR money to a tin can or a Credit Union......Banks biggest competitors. This is what happen during the recession of the 1920-30's that brought down the banks and the underlying reason the government came up with the FDIC!
A good example of how a company will lesson to it's customer is NetFlix. Many customers cancelled their account when NetFlix changed their billing. NetFlix's is doing a back-stroke now and wishing they never changed anything! Once again, greed got in the way, yet the customers prevailed!
March on troops and stay focused on a few subjects instead of a lot! That is what the right is saying about your organization....toooo many subjects making it seem disorganized!
Companies have been listening to customers since damn near the dawn of time. That's what happens in a free economic system. Congratulations on your discovery. Dope.
sure, they listen to their share holders (Greed), Then their customers. You know this to be true!
Yes, the owners of a business pursue their interests by listening to yours. The system you hate has brought a fantastic standard of living. Routine world poverty simply doesn't exist in the U.S. That passes for poverty here, the world's true poor would laugh at.
OWSers love Apple. Oh my, greed and the search for evil profit made the most loved devices. Huh, how'd that happen. How could pursuit of self interest ever result in someone else being better off too? Yeah, it's a mystery, isn't it?
The average American standard of living has been declining for 40 years. Sure there are awesome modern inventions and the cost of much of these are pretty low. You can budget in a smart phone subscription especially if you have to have it for school or work. But the idea that having one of these products equals having a high standard of living is pretty shallow.
For much of the late 40's, 50's, 60's and early 70's not everyone had TV's, or telephones, or cars but damn near everyone felt they had a pretty decent standard of living. If they had less possessions than their neighbor they'd probably agree it was mainly for their lack of ambition, and resign themselves to not minding so much. For most it didn't seem unfair.
As it is now, it really seems that ambition isn't worth what it used to be. Sure you can start a business but will it be successful enough to maintain itself and give you a steady income? You can invest in an education and sweat out years in college getting an engineering degree, but will you be able to find a job? With these questions come a strong sense of unfairness. Its all over the country, Tea Party, OWS, Working Class, Middle Class, Upper Class, everyone is aware that ambition is less sure to get you ahead. That's why they're pissed.
Another thing. Who says OWS wants to end capitalism or free enterprise or anything? If someone told you that, or held a sign saying that, or posted something like that that is their opinion. Please believe me that no one person is talking for the entire movement. In fact, as the common critique goes, no one speaks for OWS.
Speaking for myself, I don't think there needs to be nearly as much disparity in income and wealth as there is now to insure the continued advances in technology, and innovation. In fact, I think there is a tremendous waste of American money to allow an effective flat tax of 35% for just above middle class incomes. The money pools in the accounts of the extremely wealthy. There is no mechanism for preventing inflation without taxation, especially since interest rates are near zero. So, as deficit spending continues, inflation continues, and money continues to grow in the accounts of the ultra wealthy. You can check out graphs of these quantities and see definite correlations. Its a middle class rip off. Its Reganomics, and its been that way for a while. Its time to revert to levels at the time of Regan's Films not his Presidency. America was a nicer place when he was making films. Certainly, Whites were the main beneficiaries at that time but who says the same opportunities cannot exist, but for all Americans, at this time?
To spur job creation and business investment, I would like to see a greatly increased progressive tax scheme. With increasingly high amounts due in taxes, executives may decide to draw less pay and instead pay their workers more, expand the business and create jobs, or pay out dividends. Either way, it helps more Americans than just the executive board.
Either way nothing is going to change without addressing the influence of money in politics.
Customers are not educated on the benefits and costs of economic choices. There is instead a sustained advertising effort to obscure most issues. Think about it, if a majority of people had their money in a non profit credit unions that the housing bubble and subsequent collapse wouldn't have happened. To most, a bank is where you put your money and a credit union is some kind of mysterious club.
Yes, you right, so work at a bank at the branch level, telling a single mother that you can't refund her overdraft of $30.00; her gas money for that week. And You can clearly see that she overdraw her account at a grocery store trying to buy food to feed her children. Times are tough, wake up an smell the coffee!