why do bank need customers ?

Listed: 9 May 2021 21h40
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why do bank need customers ?

Banks need customers for a few key reasons:

1. Deposits: Banks rely on customer deposits to operate. When you deposit money in a bank, you’re essentially lending the bank your money. The bank then uses those deposits to:

Make loans: Banks use deposited funds to issue loans to individuals and businesses. They charge interest on these loans, which is a major source of their income.
Invest: Banks may also invest a portion of your deposits in other financial instruments, such as bonds or stocks. This allows them to generate additional income.

2. Fees: Banks offer various services for which they charge fees, such as:

Account maintenance fees: Some banks charge monthly fees for maintaining checking or savings accounts.
Transaction fees: Banks may charge fees for certain transactions, such as ATM withdrawals, wire transfers, or using a debit card outside their network.
Loan origination fees: Banks charge fees for processing and approving loan applications.

3. Growth and Profitability: More customers lead to more deposits and fees, which translates into growth and profitability for the bank. Banks can then use these profits to:

Invest in improving their services and technology.
Expand their branch network or online presence.
Offer better interest rates on deposits and loans to attract more customers.

4. Building Relationships: Banks benefit from building long-term relationships with customers. This can lead to:

Cross-selling opportunities: Banks can offer customers a wider range of products and services, such as credit cards, investment accounts, or insurance.
Customer loyalty: Satisfied customers are more likely to stick with their bank and recommend it to others.

In essence, customers are the lifeblood of banks. Without them, banks wouldn’t have the funds they need to operate and make a profit.

https://www.forbes.com/advisor/banking/banks-need-do-more-help-customers-become-financially-successful/

Why Banks Need To Do More To Help Customers Become …
https://www.forbes.com/advisor/banking/banks-need-do-more-help-customers-become-financially-successful/
For one thing, banks may need to do more to help their customers be financially successful. Beyond loans and deposits, banks could support consumers’ need for financial education by offering more…

https://thefinanser.com/2016/01/are-customers-so-important-for-banks.html/

Are customers so important for banks? – Chris Skinner’s blog
https://thefinanser.com/2016/01/are-customers-so-important-for-banks.html/
IMHO, it’s because customers are generally not having unhappy experiences with banks. Equally, it’s because banking is a hygiene factor like toilet roll, petrol, washing powder and toothbrushes.

https://cloudblogs.microsoft.com/industry-blog/financial-services/2017/12/07/the-top-five-things-a-customer-needs-from-their-bank/

The top five things a customer needs from their bank …
https://cloudblogs.microsoft.com/industry-blog/financial-services/2017/12/07/the-top-five-things-a-customer-needs-from-their-bank/
The top five things a customer needs from their bank 1. Customers want banking to be easy It sounds straightforward, but easy banking with a great customer experience is… 2. Customers want options for how they bank Ease isn’t enough – banking customers want 24/7 access and options: on the… 3. …

https://www.fintechfutures.com/2015/03/what-do-banks-need-to-know-about-their-customers-but-dont/

What do banks need to know about their customers, but don …
https://www.fintechfutures.com/2015/03/what-do-banks-need-to-know-about-their-customers-but-dont/
Banks know many things about their customers. They know these things for three reasons. The first is that they have to, writes Steve Goldstein. There are many regulations that require a bank to know its customers, primarily to prevent money-laundering and combat the financing of terrorism. The second reason is to assess risk. Banks need to know about their customers to determine whether the product the customer needs from the bank is suitable and if the return outweighs the risk.

https://www.dollarsandsense.sg/why-customer-service-is-still-the-most-important-factor-for-banks-to-succeed/

Why Customer Service Is (Still) The Most Important Factor …
https://www.dollarsandsense.sg/why-customer-service-is-still-the-most-important-factor-for-banks-to-succeed/
So we still need face time with banks. For these areas, banks need to take the time to understand their customer’s needs and circumstances first, before they are able to provide customised solutions. In such instances, high quality service becomes very important for customers. We all want someone who will listen to us, who understands us, and most importantly, whom we can talk to and trust to solve our needs.

https://www.forbes.com/sites/michalgromek/2018/07/19/why-banks-and-fintech-need-each-other-and-for-how-long/

Why Banks And FinTech Need Each Other… And For How Long
https://www.forbes.com/sites/michalgromek/2018/07/19/why-banks-and-fintech-need-each-other-and-for-how-long/
19 juil. 2018Following the signalling theory, teaming up with banks would provide FinTech companies increased credibility while allowing banks to create solutions for their customers without reflecting on …

https://www.bcg.com/publications/2018/what-do-corporate-banking-customers-really-want

What Do Corporate Banking Customers Really Want?
https://www.bcg.com/publications/2018/what-do-corporate-banking-customers-really-want
Corporate customers are demanding. The product universe is large and often tailored to the individual customer. Processes for verifying client identity and preventing money laundering are highly complex, as are credit analysis and credit risk management.

https://www.foresee.com/blog/5-trends-banks-need-know-todays-customers/

5 trends banks need to know about today’s customers
https://www.foresee.com/blog/5-trends-banks-need-know-todays-customers/
Believe it or not, banking customers still want to utilize physical branch locations as part of the overall experience. Despite the growing popularity of online banking, nearly half (49%) of customers still want access to a physical branch. Banking customers still want to utilize physical branch locations as part of the overall experience.

https://thefinancialbrand.com/63679/bank-credit-union-branch-network-strategy/

Do Banks Still Need Physical Branches in the Digital Age?
https://thefinancialbrand.com/63679/bank-credit-union-branch-network-strategy/
Bank branches continue to provide vital customer service value. At the center of this are bank tellers who are often seen as the face of a bank. They are at the frontline and it is imperative that tellers are equipped with the most up to date systems and technology. This will not only help a bank to separate themselves from the competition but also enable them to demonstrate their unique services.

https://www.jumio.com/kyc-in-banking/

KYC in Banking: Why Banks Need to Verify Customers’ Identities
https://www.jumio.com/kyc-in-banking/
Individual customers who visit a bank in person will bring some proof of identity, such as government-issued identification (e.g., driver’s license, passport), proof of address and whatever else might be required for the transaction. The banker checks the customer’s documentation to physically ascertain that they are who they claim to be. For business accounts, additional information verifying the identities of beneficial owners (e.g., articles of incorporation) and business …