The Affects of Bank Mergers on Customers & Associates

1076 Words Apr 26th, 2007 5 Pages
Bank mergers have increased rapidly in the past few years. Many wonder are so many mergers really necessary. The consolidation of two large banks could affect the relationship between the community, customer and the employee. Along with the merging of the two industries comes change for everyone involved. There is a lot of competition in the banking industry, which is the main reason for so many bank mergers. Bank mergers can improve competition and can be beneficial to the community if both financial institutions are in agreement with doing what is best for everyone involved. Banks should consider other options before taking a chance on losing good customers, loyal employees and trust in the community. The merger between two …show more content…
This will cause job eliminations that would limit the service that a customer might get. The rapid increase of bank mergers will result in more bank employees being displaced or outsourced. Caring for the associate, the customer and the community should be the main principal of a bank merger. Being active in the community is not just about growing the business but also gaining the trust of the local community. Relationship building and trust is a direct result of community involvement. Customers have to trust that the merged banks are ethical and will work hard for them. Bank mergers will continue as the economy slows down and everyone involved in the process must be aware of what the other is doing. "Building that trust is how you grow and develop relationships within the community" (Medina 2). For the merger to be successful, the community needs to feel that the bank not only cares about its business but also the community. Bank mergers could be good for the community and associates of the companies if they were involved in the final decision. The two companies must convince everyone that they will be better together and focus on building a stronger future for shareholders, customers, associates and communities. "Merging with new banks gives us new markets and access to new clients" (Johnson 3). The two merging banks will have to put the needs
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