The Affects of Bank Mergers on Customers & Associates

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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 national banks will affect the community in many ways. Big organizations have a way of changing while they merge. The biggest concern will be relationship management between the two corporations. "You want to be able to call the person there and (have confidence) that they know you, especially if you have to rush something through, like a line of credit" (Wasserman 2). If you don't know the person with whom you are working with, it may take a little longer than expected to get the job done in a timely manner suitable for the customer. You have to gain the trust and respect of your fellow co-workers. Merged banks don't give you the total borrowing capacity that you were use to before the merger. It will be cut back, along with a lot of other valuable services that could cause you to lose some top dollar customers. "Some employees may find themselves with different relationship officers, who aren't as familiar with the accounts as the previous officers had been-and who may be stretched a little thinner than in the past. For some, this will be reason enough to find a new bank" (Kidder 1). When customers are comfortable with the employee they have been doing business with for years, they are not so eager to change banks....
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