Article: Learn How to Bank Like a Banker - Free Reprintable Article

by Kimberly Griffiths
The business of banking has changed dramatically over the last decade. Because the cost of doing business the old-fashioned way is no longer effective, banks are interested in changing their customers' behavior by encouraging electronic banking alternatives whenever possible. They have done this by charging high fees for services that were once free. If you pay $200 or more in annual fees for banking, it's time to do some competitive shopping.

Before becoming furious with your bank, it may be that the products you're using no longer meet your personal needs. If you have an established relationship with your bank, inquire about the other types of lower-cost checking and savings account products.

By understanding the rationale of why a bank charges fees for different services will allow you to be a savvy banking customer. If human contact is required to serve you, such as a teller or personal banker, this is very expensive for the bank. The incentive is for banks to encourage more high-tech, "low-touch" methods of meeting your needs. This is accomplished by servicing as many customers as possible with automated telephone services, cash machines, and online self-service banking.

Since the bank needs to train their employees, provide a paycheck and benefits, pay for the branch building, in some cases supply uniforms etc., it is conceivable that your one banking transaction per pay period could cost the bank $3 or more for your one banking transaction.

If you conduct your banking via an automated telephone system, the cost of this type of transaction is much less expensive. However, if you then require assistance from a telephone banker, the price goes from $1 for the automated process to as much as $2 for human contact. For the same reasons stated above, the training, location, computer equipment, etc. become more expensive when human interaction is needed.

Now it is clear why electronic banking methods are preferred by financial institutions. In fact, most banks are rewarding their customers with lower fees the more the customer does his/her banking electronically. For example, even though Automatic Teller Machines (ATMs) costs the bank around $100,000 each plus the cost of the computer network and maintenance, the cost of these type of transactions drop to $0.50 - $1 each. Not only are these machines more cost effective, the 24-hour availability to customers is very convenient.

With the ease and convenience of Automatic Clearing House (ACH) payments, this "checkless" process drops the price to around $0.25 each. And finally, the Internet drops the expense even further to less than $0.10 a transaction. I realize that there is still some fear of banking electronically, but the security that banks have instilled with computer technology far surpasses the current security of traditional banking methods. If you lose your checkbook and wallet, the cost and worry of canceling these checks is very tedious. It's very possible that a thief could forge your name and deplete your accounts in a matter of hours. The sophisticated computer technology, however, although not perfect, has a far more secure system to protect you and your money.

Avoid being the bank's best customer. Attempt to cut your annual bank fees in half by educating yourself. Inquire about the options and products available to you with your banker. By asking about the alternative banking methods, you may find that your bank fees will drop considerably.

***************************************************************
This is an excerpt from ONE PAYCHECK AT A TIME, www.onepaycheckatatime.com, by Kimberly A. Griffiths, ISBN: 1591133327. ONE PAYCHECK AT A TIME, a 200 page workbook, contains budget management exercises for an entire year of paychecks. The author, Kimberly A. Griffiths, has been through the vicious cycle of debt herself, and provides a no-nonsense system to managing your money paycheck to paycheck. You customize the journal based on your pay schedule and learn the necessary tools for making ends meet.

Note: This article may be freely distrubuted and reprinted as long as the author's information and web link are included at the bottom of the article. The web link should be active when the article is reprinted on a web site or in an email. Minor edits and alterations are acceptable so long as they do not distort or change the content of the article. For more information on reprint rights email:

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496 Words

Title: Learn How to Bank Like a Banker
Author: Kimberly Griffiths

The business of banking has changed dramatically over the
last decade. Because the cost of doing business the
old-fashioned way is no longer effective, banks are
interested in changing their customers' behavior by
encouraging electronic banking alternatives whenever
possible. They have done this by charging high fees for
services that were once free. If you pay $200 or more in
annual fees for banking, it's time to do some competitive
shopping.

Before becoming furious with your bank, it may be that the
products you're using no longer meet your personal needs. If
you have an established relationship with your bank, inquire
about the other types of lower-cost checking and savings
account products.

By understanding the rationale of why a bank charges fees
for different services will allow you to be a savvy banking
customer. If human contact is required to serve you, such as
a teller or personal banker, this is very expensive for the
bank. The incentive is for banks to encourage more
high-tech, "low-touch" methods of meeting your needs. This
is accomplished by servicing as many customers as possible
with automated telephone services, cash machines, and online
self-service banking.

Since the bank needs to train their employees, provide a
paycheck and benefits, pay for the branch building, in some
cases supply uniforms etc., it is conceivable that your one
banking transaction per pay period could cost the bank $3 or
more for your one banking transaction.

If you conduct your banking via an automated telephone
system, the cost of this type of transaction is much less
expensive. However, if you then require assistance from a
telephone banker, the price goes from $1 for the automated
process to as much as $2 for human contact. For the same
reasons stated above, the training, location, computer
equipment, etc. become more expensive when human interaction
is needed.

Now it is clear why electronic banking methods are preferred
by financial institutions. In fact, most banks are rewarding
their customers with lower fees the more the customer does
his/her banking electronically. For example, even though
Automatic Teller Machines (ATMs) costs the bank around
$100,000 each plus the cost of the computer network and
maintenance, the cost of these type of transactions drop to
$0.50 - $1 each. Not only are these machines more cost
effective, the 24-hour availability to customers is very
convenient.

With the ease and convenience of Automatic Clearing House
(ACH) payments, this "checkless" process drops the price to
around $0.25 each. And finally, the Internet drops the
expense even further to less than $0.10 a transaction. I
realize that there is still some fear of banking
electronically, but the security that banks have instilled
with computer technology far surpasses the current security
of traditional banking methods. If you lose your checkbook
and wallet, the cost and worry of canceling these checks is
very tedious. It's very possible that a thief could forge
your name and deplete your accounts in a matter of hours.
The sophisticated computer technology, however, although not
perfect, has a far more secure system to protect you and
your money.

Avoid being the bank's best customer. Attempt to cut your
annual bank fees in half by educating yourself. Inquire
about the options and products available to you with your
banker. By asking about the alternative banking methods, you
may find that your bank fees will drop considerably.

************************************************************
This is an excerpt from ONE PAYCHECK AT A TIME,
www.onepaycheckatatime.com, by Kimberly A. Griffiths, ISBN:
1591133327.  ONE PAYCHECK AT A TIME, a 200 page workbook,
contains budget management exercises for an entire year of
paychecks. The author, Kimberly A. Griffiths, has been
through the vicious cycle of debt herself, and provides a
no-nonsense system to managing your money paycheck to
paycheck. You customize the journal based on your pay
schedule and learn the necessary tools for making ends meet.

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Page Title:	Article: Learn How to Bank Like a Banker
Keywords:	reprintable article personal finance learn how bank banker, free reprintable article
Summary:	The business of banking has changed dramatically over the last decade. Because the cost of doing business the old-fashioned way is no longer effective, banks are interested in changing their customers' behavior by encouraging electronic banking alternatives whenever possible.