What happens when interest rates rise?
It is a well known fact that banks like Chase are making bank (so to speak) right now because they can borrow money from the Federal Reserve at almost zero percent interest and lend that money for quite a bit higher, or use that money in their own proprietary trading operations. Life is good, and profits are fat. But when interest rates fall, what will Chase have to fall back on? There are some doubts about whether their consumer banking unit (aka Chase Bank) will pass muster as a thriving business.
First, consider Chase’s slash-and-burn tactics with retail baking customers that by our analysis appear to be driving customers away. But more important is the anecdotal evidence that their customer service just stinks, as evidenced by a customer that has only been with Chase a short while, meaning, a very important type of customer, the new and potential customer:
I’m going to start this post off in a very personal fashion, I do all of my banking with JPMorgan Chase Bank, aka Chase. I’ve been a customer for just a few months and the service is outstanding, well sort of. My business banker is a down to earth, reliable, honest person and knows the various programs in the Chase portfolio. Aside from him, the customer service at the Howard Beach, NY branch is horrific. I go to deposit my payroll check, and the teller gives me an attitude as does the manager (who mind you seems more concerned with Real Housewives of New York City than her 20+ customer in the branch). I work hard for my money, I work hard for my business, and no I don’t take things like Air Conditioning for granted, they apparently do. I’m tired of shitty customer service, whatever happened to the customer being right, or service with a half-ass smile. I guess that went out the window, when they started treating bank customers like flight passangers. Please stand in a straight line, with two forms of ID, your blood type, hair color and a sperm sample please, while we verify this is you and record your every move, so make sure you fill out the deposit slip correctly, because you CAN’t HAVE ANOTHER. Banks Suck, they really do. JPMorgan Chase can’t afford to lose even the smallest of business, because we all know they aren’t making any money anywhere else, and with interest rates the way they are, they need to start being nice or Santa is going to start thinking twice.
Customer service | admin July 13, 2010
