Before you choose a Bank (2)

By BABAJIDE KOMOLAFE

Service should be the first factor to be considered before choosing a bank. It should start with the banking services your need. You have to be clear about what you need. The banking needs of a student are different from that of a petty trader, or that of a manufacturing company.
Now, while most of the banks offer basic banking services, some are good at the delivery than others. Consequently, you need to find out the bank that offers your banking needs efficiently more than others. How? Relate with and inquire from friends and colleagues, and even from your neighbours.

Many people have made the mistake of being influenced by the attractive advertisement of banks on television and radio, only to realize that the experience at the branches is not attractive at all. So, you need to hear from people who have had several dealings with a bank before you choose the bank.

When it comes to the services offered by a bank, you need to clarify the cost of the services i.e. fees, charges etc. For example, in the past Savings Accounts did not attract Commission on Turnover (CoT) and other fees.

Now, some banks have imposed charges on such accounts, without informing their customers. Also, some banks have an array of charges and fees which are not always apparent to the customers, and are not explicitly disclosed when the customer is opening the account.

As a result, if you keep your money with some banks, the value will reduce over time, even without withdrawing from the account. I remember the case of a close acquaintance, whose wife was then a staff in one of the top banks. They opened a savings account for their twins, and kept money received during the naming of the children in the account.

To the dismay of the man, he started getting text alert for charges at the end of each month. That is why you must be clear about the charges and fees of any bank before you enter into relationship with it. I also remember a friend who took a loan to complete construction of a school building. He had taken and used the loan before realizing sundry charges attached to the loan in addition to the interest rate.

There are banks that limit their charges to what the Central Bank of Nigeria (CBN) stipulates in the Revised Guide to Bank Charges. However many of the banks do not, they explore avenues, including the ignorance of the average person, to circumvent this Guide, by subjecting customers to illegal charges. But you can avoid being a victim, by doing your homework before deciding on the bank to do business with.

Another factor to be considered is location. You need a bank that you can easily access from where you reside, work, do business, or along your regular route. It is not expedient to spend considerable time and resources before you can access a branch of your bank.

Now, while most of the top banks have expansive branch network, they do not have branches in every street, village, town or city. Yes.  I remember the case of a friend who agreed to open account with a bank with the nearest branch located in Apapa, while he lived at Okota, in Lagos State.

He told me the stress he usually went through to access this branch, until he decided to abandon the account, and changed to a bank that opened a branch close to where he resides. Of course, the reason why he opened the account with the first bank was because his friend was a staff, and persuaded him to open the account so that he (the bank staff) can meet his target. Many people have made this mistake, but you don’t need to be one of them.

- Culled from: http://www.vanguardngr.com