It's a Tough Month

December has always been a tough month in the banking industry, but it seems to be more so this year than others that I remember.

First we had to deal the awful media coverage of the fines being issued on banks with Bank Secrecy problems. Even though there have only been a few banks involved, the backlash has been felt by all who have had the unlucky timing to have examiners in recently.

Then the magazines and newspapers got on the Check 21 "bad news" bandwagon, and the front office staff had to deal with the customer reaction to what is perceived as a loss of quality of service (according to the Consumers Union).

Then along came the articles and the adverse publicity about credit card interest rates. Doesn't make any difference to the customer that YOU had nothing to do with the way interest has increased or not, you're going to hear about it and share the blame anyway.

Now the consumer groups are going after the banks because of the debit cards. According to the National Retail Federation, debit cards are more popular for shoppers even than cash or credit cards this Christmas season. One reason consumers say they prefer using debit cards rather than credit cards is that they feel they're spending their own money instead of building debts that have to be paid after Christmas. Unfortunately, though, many of these folks have arranged automatic debits to their accounts for other bills, such as telephone, electric or mortgage. And when they forget to enter their debit card purchases into their checkbook and keep track of what they're spending, they run into overdrafts. And then you hear about it - it's your fault, of course.

Meantime, Internet shopping is breaking all records this year, and between that, the catalogs, and the sales from eager merchants, our customers are overdrawing their accounts at more than their normal rate. And along with the overdraft problems come the irate customers, who don't bring their holiday spirit with them when they're discussing OD charges.

Add to this your senior customers and members who are literally being hounded by the government these days to sign up for direct deposit for their social security checks. I'd like each one of you who has had to listen to, "I've ALWAYS gotten my social security this way and I DON'T WANT IT ANY OTHER WAY!" to send me a quarter. Then I'll go do my Christmas shopping!

Things are sure to settle down after the first of the year. Hang in there. Oh, and by the way, "Merry Christmas!"

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 10, 12/04