Problem

Unsatisfactory retail banking

Other Names:
Confusing complexity of retail banking
Increasing bank charges
Bank policy of fee for service
Distancing of banks and customers
Nature:
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
Problem Type:
E: Emanations of other problems
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 8: Decent Work and Economic GrowthGOAL 12: Responsible Consumption and ProductionGOAL 16: Peace and Justice Strong Institutions
Date of last update
06.02.1999 – 00:00 CET