Can the large bank be best for your banking needs? It is entirely possible. Follow along as we examine the positives surrounding larger banks in this comparison.
Is Bigger Better?
For many consumers: yes.
Take an editorial from Peter Kenny that argues for local banks. Before getting into the advantages of the local bank (covered elsewhere), he is quick to point out an immediate plus of the large bank: “One of the biggest advantages of the large bank is sheer coverage. There are often multiple branches not only in a town or city but even across the country.”
You can imagine the convenience of this alone. If you are travelling, there is a decent chance that you’ll be within reach of your bank. Moving? No problem; find the closest bank that will likely still be quite convenient.
Bigger can mean good things if you are worried about pure coverage. This means that you can avoid ATM fees. Bigger banks can also leverage their size in variety of banking products, as well as other general advantages.
One Major Advantage: Technology
We can speak of the major – and relatively obvious – advantages of large banks. However, there is one area that gives large banks an advantage. Technology, generally speaking, is almost always handed to the big bank.
In some circumstances, the field is not that separated. Online banking is not a rare sight with all local banks. However, while online banking is commonly offered by all banks, larger banks excel. As local banks catch up, it seems as if though larger banks are strongly utilising important features: bill pay, easy payment systems, and other online tools.
For those that enjoy the technological advantages present in banking, the large bank is an obvious choice. There is a final progression where, at least at the moment, large banks offer a clearly-superior advantage: mobile banking. Mobile banking is the latest trend in banking, with a wealth of apps offered on mobile devices for users to bank in convenience.
Want to check your account from your smartphone? Would you like to deposit a check by taking a picture with your iPad? Interested in paying your cable bill from your Internet-enabled mobile device? Right now, the large banks offer this type of capability.
Take the Close Look
As clearly stated in the article on the advantages of local banks, you must keep in mind that we are speaking in generalisations. You can’t take all of these items to heart; you must compare actual banks and their practices/products/etc.
Take a look at large banks in your area, if some of these perks interest you. After comparing local and large banks, you might more clearly be able to decide what’s best for you. Take a look at the final article in this miniseries to observe some closing thoughts.