Apr 11, 2019

4 Banks That Are Revolutionizing the Traditional Customer Experience

Having a bank account is an essential part of managing your finances, but you don’t have to be limited to big banks. Many millennials are shifting away from traditional banks in favor of newer, more innovative services. Traditional banks often have hidden fees, low-interest rates on savings accounts, and limited hours and availability. In recent years, digital and mobile banks have skyrocketed in popularity. New technology can make banking and financial management much easier, and companies that keep up with new innovations are attracting more young customers than banks that stick to old-fashioned practices. Here are three banks that are revolutionizing the traditional customer experience.

  • Capital One is one of the largest and most popular banks in the United States, but they have recently taken steps to appeal more to young people. In the last few years, Capital One has opened dozens of cafés in major cities throughout the country. At these cafés, customers can purchase Peet’s Coffee beverages as well as snacks and pastries from local bakeries. The cafés function as co-working spaces, too, so they offer plenty of tables, comfortable chairs, and device charging stations.

    Capital One Cafés also provide the services of a traditional bank. Customers can meet with money coaches and Capital One Ambassadors to set up accounts, apply for credit cards, pay bills, and handle other financial matters. At some locations, financial experts host sessions and workshops throughout the day on a variety of topics, such as discussing money with your partner or how to organize your finances more effectively.

    According to Senior Vice President Lia Dean, the cafés are intended to connect young people with financial professionals in a relaxed and casual environment. Marketing experts understand that most millennials don’t care for the corporate world, so the goal of the cafés is to help Capital One shed their corporate image. Capital One Ambassadors who work at the cafés are always available to answer customers’ questions about banking and finances, but they won’t bother you while you’re working or enjoying a cup of coffee.

    Capital One Cafés are open to anyone, but Capital One cardholders get 50 percent off any drink purchases. Every café has a Capital One ATM available to anyone, although they charge a $3 fee for non-customers.

  • Monzo is a mobile-only bank that was founded in 2015 in the U.K. The bank has no physical locations, but customers can take care of all their banking needs from their smartphones. Founder Tom Blomfield explains that his goal is to reduce financial anxiety for his customers. Monzo aims to be completely transparent and provide a sense of control to customers, so they can successfully handle their money without any stress.

    The bank offers a current account as well as a debit card. Customers can easily transfer money between accounts with different banks, and they can even send money internationally. Monzo also allows for direct debit payments for recurring bills and expenses. To make money management easier, the Monzo app offers monthly budget management, a comprehensive account summary, and instant notifications when you use your debit card.

    Monzo is currently based in London, but the company has announced plans to expand to the United States. They have a small team of employees in the U.S. who are working with a banking partner to establish themselves, but they plan to apply for a regulatory license and begin working independently soon. Once they have rolled out all their services to American customers, they may become one of the most popular digital banks for young people.

  • Robinhood is a stock trading platform that attracted attention after their launch in 2013 by offering zero-fee transactions. Immediately after launching, the company made a splash with its affordable, no-cost trading opportunities. And whether you’re a new investor or an experienced trader, joining Robinhood gives you an account that allows for commission-free investment in stocks, ETFs, options, and cryptocurrencies.

    If you’re worried about making mistakes or losing your money, opening a Robinhood investment account can give you peace of mind. Robinhood’s accounts and online platform are designed for new investors. You’ll get a clear picture of what’s happening to your money and what your portfolio looks like in your online account. From there, you can take action, adjust your positions, and grow your money. And you won’t have to pay significant fees.

    And Robinhood is an entirely digital bank. There are no physical branches, but customers can access chat support 24/7. You can handle all your needs on the Robinhood app and website. With no fees on investment accounts, Robinhood is a popular option for millennials. The company currently has more than six million customers, and its upcoming services will attract even more people.

  • Sometimes, the very best banks are those that not many people know about — and that’s the case with Consumers Credit Union. Credit unions vary across the country, but many are smaller, not-for-profit banks that serve only local populations. And while you may need to work for a specific company or live in a specific region to join a credit union, there are a ton of benefits.

    Consumers Credit Union offers plenty of benefits. In fact, it’s open to customers nationwide, meaning anyone can join and open an account. With no worries about making a profit like a traditional bank, Consumers Credit Union also offers better account and financing terms on everything from checking accounts to auto loans to home financing.

    Right now, you can score great terms from Consumers Credit Union. Open a Free Rewards Checking account, and you can qualify for an interest rate of as much as 5.09 percent APY. That’s a huge interest rate compared to the national average. Just make sure you can qualify to meet the account balance and activity requirements. Accounts holding up to $10,000 will earn an awesome 3.09 percent APY, and $15,000 and $20,000 balances will earn 4.09 and 5.09 percent respectively.

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