The Impact Of Economic Recession On Customer Loyalty To Banks

The economic recession of 2008 has definitely change the way many people manage their finances. A harsh hit for almost all the countries out there, the recession has taught people, once again, that balance and calculations are worth more than any premium credit card and more than any loan one can get from a bank. The recession has taught people that even when the most knowledgeable people in the field predict something, it does not necessary mean that it will happen as well. Last, but not least, the economic recession has taught people to re-consider their options when it comes to those who provide them with various services: banks, electricity providers, and so on.

Customer loyalty to banks has definitely changed over the course of the last few years. While people used to trust one bank for most of their major transactions, nowadays people are more open when it comes to the new offers out there. In the end, everybody wants to get the best service and the best offer and to save money through any means possible – and this is precisely why the larger section of the population is now more ready than ever to change their banking services providers should a new, better offer appear on the market.

The logical consequences of this should be related to a market that is actually competitive. The minute more people will start to change their banking services providers for better offers, the other banks will start thinking of new strategies and better offers themselves. For the customers out there, this can only be a good thing, for they will have plenty of great options from which they will be able to choose when they will want to change banks – again.

While many of the people out there would argue that loyalty to one or two banks can have its advantages, the truth is that the nowadays world will not offer anyone with the security they need when it comes to their finances, not even if they use the same provider for 5 decades in a row. While this used to be true back when the economy was in a more stable place and when technology had not made such incredible advances (changing everything in our lives from one year to the other), it is not necessarily a good option nowadays as well. A competitive market permanently running for its customers can only bring them with benefits they did not expect before and you can see the opposite of this in those niches where one company has the monopoly over the market – they are able to set whatever prices they want to.

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