Lets take an example of a bank. They started providing services such as credit cards. As soon as credit card services became popular they started offering self services brokerage services to their potential clients. Have you heard about Etrade brokerage firm? I am sure you have. They have started a services like checking saving accounts of their clients and offer cash back credit card services which is like a very bold step taken by them.
I was just reading a magazine this morning and in one of the advertisements I saw that American Express has now started their personal savings account services and Financial Institution like Discover has started their own online savings account department. No matter what services they are offering to their clients, at the end of the day all the financial institutions will be same. There was a time when these institutions used to portray a model of knowing things well and doing it better than anything else. All in vain.
I was shocked to see this
I visited a bank (will not mention the name for obvious reasons) last weekend. Can you imagine a banker who himself doesnt have any idea about the products he sells in the bank. I went to open my business account and had to change it twice in order to know the exact account where I am not charged any fees. The banker did not provide me with any information. But I somehow found it myself only with the help of their website.
The bankers act very smart. To get rid of customers like me they ask you to call the other department because they know they cannot help you in any way and it will make a negative feedback on them.
When we enter these banks for the first time they offer us some amazing services which we are not bound to avoid at any cost, but once you become their customer all the financial institutions become the same. This is now happening with all the industries including banking sector.
What do you think in case of Walmart here? They really played a safe game. First they ignited the competition and then later drove all the small stores out of this business. Superb business strategy. When it comes down to money we all have to take extra precautions.
What do you think of these financial institutions? Are you really satisfied with their performance? If not Why?