Unsatisfactory retail banking

Other Names:
Confusing complexity of retail banking
Increasing bank charges
Bank policy of fee for service
Distancing of banks and customers

There was a time when banks gave modest interest on deposits, and all routine customer services were free. The bank covered its operating costs by investing its depositors' funds. This was sufficient for most people. Now banks offer an ever growing and changing variety of accounts and services, assisted by computer technology. Negative aspects of the transition in retail banking are the impersonal nature of automatic services, confusion over the multiplicity of items, hidden or opaque charges, deductions from accounts without approval, attrition of the importance of a relationship of trust in banking, failure to act on informal agreements or to meet customers' reasonable expectations, rapid changes in interest rates, lack of notice of changes and "high-handed" or insensitive behaviour by banking staff.

Broader Problems:
Economic inefficiency
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 12: Responsible Consumption and ProductionGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST