There is a difference between what customers think a bank is, and the reality. Once upon a time the “branch banker” was the local expert on finance. Many of us still perceive banks and bankers in this light, but it is no longer the case.
In reality, banks are simply retailers. Bank staff members are largely trained to sell bank products and services, and not give advice. From a service perspective, they can range from poor to excellent – but that’s service and service is retail.
Bank staff members receive little or no professional training and limited accreditation, if any (because a large amount of time is spent on service, so professional training is hard to justify). If accreditation exists it is usually in ‘How to do an application properly’ or ‘How to make a credit decision’, not on giving advice! Bankers do not get formal training on interest rates. They form their views by listening to other people, just like you do.
I think banks generally provide excellent service although sometimes they can be too bureaucratic. The more interesting question is: Do banks truly act in their own interest, or in the interest of the customers? And therefore, can they be relied upon for advice?
What I see time and time again is that banks have simply become retailers, pushing responsibility for the financial decision-making back on to the customer. Ironically, the customer thinks the bank knows best so nobody is actually consciously taking responsibility.
If you do not know what you are doing (and you feel your bankers don’t either) then take personal responsibility and either do the research yourself or find someone who is qualified to help. Otherwise it could cost you thousands in extra interest over the life of the mortgage.
We’ve taken 150 of the banking reviews that we did in Dececember and January, to figure out what this could cost you. Check out the blog: How Good is Your Bank on Mortgage Advice?
