Happy With Your Bank?
A recent survey of businesses, not-for-profit organizations and governments found that just 59% were likely to continue using their bank for their financial needs. This means that over 40% were willing to leave for a better alternative (real or perceived). The survey found a main source of frustration was the respondent's financial institutions did not adequately understand their banking needs. The online experience also seemed to be a significant factor in terms of intentions to stay or leave.
So as a non-profit community-based sports organization, how happy are you with your bank? If you're feeling less than thrilled, here's some ideas to explore with your current bank before pursuing a change:
- Don't pay any monthly banking fees; or any fees for that matter. Most organizations amass a huge sum of money during registration periods (like $200k-$300k, or more!), which then depletes slowly over the months to pay the bills. Banks benefit from such large amounts in various ways, so to then charge fees isn't very fair. Some banks acknowledge the benefit by offering a no-fee account as long as you maintain a minimum deposit amount, which shouldn't be a problem for many months. If no such account is available at your bank, negotiate to waive the fee. If the bank resists, tell them you’ll take your business elsewhere – you'll find that suddenly a fee waiver won’t be that big a deal.
- Do open a high-interest account or find a way to do short-term investments - again, at no cost. May as well put a big chunk of that money to use that’s just otherwise sitting in the account. You might be surprised at the amount of interest earned – and hey, every dollar counts when you're a non-profit organization that has no choice but to watch every penny.
- Do make sure the online functionality meets your needs. We're just not talking about it being intuitive and user-friendly. It should also allow for multiple logins to the accounts – some restricted just to view, and others with no restrictions to do the required transactions. If you’re wondering why this is important, check-out our earlier blog on fraud prevention.
These are just a few things that might make you happier with your bank and stay put. If you're still not feeling too happy, maybe it is time for a change. Just like how 40% of the survey respondents felt.
Thanks for reading.