How has banking changed?

Answer 1

'In the old days' a Bank Account was a privilege granted on only to those of 'good standing' who would be 'vetted' and allowed to form a 'relationship' with their Bank Manager.

The 'loyal customer' could expect their Bank to help them out in the event of temporary cash-flow problems with Overdrafts etc.

Since the Bank Manager knew their customers individually, they could judge when to extend the loan and when to call in the debt.


However competition (and Share Holder expectations) pushed the Banks into granting accounts to anyone who asked for one - and they soon found that the best way to make money out of these new customers was to give them automatic overdrafts and charge them through the nose.

Of course Managers no longer had any idea of who was a 'good bet' and who was a spendthrift wastrel .. so as soon as the customer got into any real difficulties they would call in their loans ...

Needless to say customers realised that no matter how long they put up with the banks charges, the Bank would show them no loyalty what-so-ever = so those who could started to 'shop around' for better deals.

These days customers have reached the point where they are willing to pursue Banks for refunds of the excessive charges levied against them in the past (even though they accepted those charges at the time)