Switching banks…
Addressing pain points for consumers is always a great way to launch a successful business and the new BankSwitcher is doing just that. BankSwitcher analyzes consumers’ checking accounts for direct deposits, automatic payments and the like to determine what exactly needs to be switched by using Wesabe’s newish free API. After determining all of the automatic transactions, BankSwitcher (I’d normally use an acronym here, but…) uses their database of research to determine exactly what forms are needed and/or steps taken to switch.
This particular topic has always been a "hot one" because so many great discussion points come up. It’d be nice if bank accounts had number portability like cell phones do, but that would be a massive up hill battle that would have to come from some type of additional governmental regulation. The current ACH system has many limitations and really is not meant to support real-time online transactions. Maybe at some point in the future, we’ll have a real switch button, but until then, making the paper form process easy will win out.
Many FI’s will see this, and the possibility of a real-time "switch button" or account number portability, a threat. I believe that threat will prevent most FI’s from pursuing any type of account number portability without some type of government intervention. What many FI’s should also consider though is the goodwill that can be found by offering your members (or customers) an easy way out. As CU’s we are really here to do one thing: help our members, regardless of if the are opening a money market account or closing their membership.
Hi,
I’m the CEO of Facilitas (the company launching BankSwitcher). I would like to point out that BankSwitcher can read OFX or QFX files generated from any Bank or Credit Union — not just from Wesabe.
Helping customers leave an FI is an intriguing idea. Obviously, if someone is moving away, helping them with BankSwitcher will be great PR. But if someone is leaving because they’re unhappy… then it’s an opportunity to ask for a second chance to make it right: “Let me try to fix it and if I can’t, I’ll help you switch to any bank or credit union you want.”
Another opportunity to leverage BankSwitcher with existing customers is to help those who need to change their account numbers because of identity theft etc. These poor people have to go through the painful switching process even if they’re not switching banks. This is a great opportunity to soldify a relationship at risk.
Rob–
For some reason I thought I had seen the OFX thing, but I had a hard time determining that in the “Get Started” wizard. And great point about the identity theft thing as well.
Maybe it’s because you entered using the Wesabe link? The tour is slightly different if you enter from http://www.bankswitcher.com/wesabe.jsp versus http://www.bankswitcher.com
Sure enough, that was the issue Rob!