Showing posts with label Banking. Show all posts
Showing posts with label Banking. Show all posts

Friday, August 11, 2023

Your Money, Your Community: The Strength of a Local Bank

Are you tired of feeling like just another number in the banking system? Are you ready to make a real impact with your money? If so, supporting a local bank may be the perfect solution. 

Today, more and more customers are recognizing the power of their spending and how it can make an economic difference within their community. Local banks understand this mission and strive to unite people through better financial options. 

From convenience to meaningful relationships, considering a local bank could benefit your wallet and your community.

The Advantages of Choosing a Local Bank

When it comes to choosing a bank, there are many options available. However, it's important to consider the advantages of choosing a local bank. 

Not only do you have the benefit of building a personal relationship with your banker, but you also support your local community. Local banks are invested in the community's success and often make decisions based on the community's needs rather than corporate interests. 

Another advantage is that local banks typically offer more competitive rates and fees than larger national banks. By choosing a local bank, you can feel confident in knowing your money is in good hands while also supporting the growth and development of your community.

Building Stronger Communities by Investing in Local Banks

As our world becomes more globalized, it's important to remember the value of investing in our local communities. One way we can do this is by supporting our local banks. 

By choosing to bank with a local institution, we're keeping our money close to home and helping to build a stronger community. 

Local banks often reinvest in the community through loans for small businesses and mortgages for residents. They're more likely to understand their customer's unique needs and challenges. 

So, next time you're considering where to open a new account or take out a loan, consider investing in your community by choosing a local bank.

The Benefits of Working with a Community Bank

Working with a community bank can be an excellent option for those seeking personalized financial solutions and a close relationship with their bank. 

Community banks prioritize building relationships with their customers and understanding their unique needs, unlike larger financial institutions. This personalized approach can lead to more flexible loan terms, lower fees, and higher interest rates on savings accounts. 

Plus, you're supporting your community's economy by working with a local bank. By working with a community bank, you'll have access to competitive financial products and peace of mind knowing that you're a valued customer. Why not give your local community bank a chance?

How to Get the Most out of Your Money at a Local Bank

Heading to your local bank is a great way to get the most out of your money. You can make the most of your banking experience in various ways. 

You can start by setting up a checking account that pays interest or a savings account, which allows you to earn more on your hard-earned money. Additionally, find out what kind of perks your bank offers, such as cash-back programs or waived ATM fees. One of the best ways to get the most out of your local bank is by taking advantage of their expertise. 

The professionals at your local bank have years of experience in the financial industry and can offer sound advice on investments, loans, and credit. Finally, feel free to ask questions or negotiate fees. 

Your local bank is there to help you and wants to see you succeed financially. With this advice, you'll be well on your way to getting the most out of your money at your local bank.

What You Need to Know Before Choosing a Local Bank

Are you in the market for a new local bank? It's an important decision that impacts your financial well-being, so it's essential to choose wisely. There are several factors to consider before making your choice. First, consider the bank's fees and policies. 

Will you be charged for ATM withdrawals or monthly maintenance fees? Be sure to read the fine print before committing to a particular institution. 

Second, pay attention to the bank's customer service and accessibility. Are their hours convenient for you? Can you easily reach a representative if you have a problem or a question? Lastly, take into account the bank's reputation. 

Are they well-respected in the community and known for providing quality services? With these factors in mind, you can choose the right local bank.

Tips for Making Your Money Work Harder in Your Community

If you want to make your money work harder in your community, there are a few tips to keep in mind. First and foremost, consider investing in local businesses or real estate. 

This supports your community's economy and can provide a solid return on your investment. Another way to make your money work harder is to take advantage of community resources, such as energy-saving initiatives or community banks with higher interest rates. 

Additionally, consider joining a credit union like the Credit Union of Denver. Also, consider investing in a local co-op, which can often offer more personalized and cost-effective financial services. 

By putting your money into your community, you benefit yourself financially and contribute to the growth and vitality of the place you call home.

Final Thoughts

Choosing a local bank is not only a great way to support your community, but it can also potentially lead to greater returns. With today's technology, staying connected to your accounts and using modern banking tools is easier than ever. 

Local banks are built on trust and relationships, providing customer service in an efficient manner that isn’t found elsewhere. Whether looking for lower interest rates on loans or faster access to money, partnering with a local bank is the perfect choice. 

Moreover, investing with a local bank allows you to make the most out of your money while knowing you’re integral in helping shape your local economy and maintaining strong community ties. 

All in all, choosing a local bank has all sorts of advantages, from better opportunities for savings and investments to support your community—so why not try it?

Wednesday, July 12, 2023

Unlock Your Financial Freedom With a Credit Union

Banking is a crucial aspect of your life, and managing it properly can bring about a sense of financial security. However, with so many options available, choosing the right financial institution can be overwhelming. 

One type of financial institution that is gaining popularity is the credit union. A credit union is a nonprofit organization that offers financial services to its members. 

It is a relatively new concept for many people, and at times it can be hard to understand what makes them different from a regular bank. This blog post will explore how credit unions can help you unlock your financial freedom.

Lower Fees and Better Rates

When it comes to managing your finances, one of the most significant concerns is the fees and rates you pay. Many credit unions offer lower fees than traditional banks, and they also have better interest rates on savings accounts and loans. 

Credit unions do not have to pay shareholders like traditional banks do, which means they can offer better rates and still make a profit. 

For example, credit unions may offer lower or no ATM fees, lower overdraft fees, and fewer account fees.

Personalized Service

Credit unions are member-owned and operated, which means their focus is on serving their members rather than maximizing profits. As a member, you are not just a customer, but an owner, which means you have a say in how the credit union is run. 

Credit unions, like Credit Union of Denver, often have a more personalized approach to customer service than traditional banks. 

They are generally smaller than banks, which allows them to be more closely attuned to individual members' needs, and they often offer financial education to help members with their financial goals.

Better Loan Options

If you need a loan, a credit union may be a better option than a traditional bank. Credit unions offer better interest rates on loans due to their nonprofit nature, and they typically have more flexible loan terms. 

Credit unions may also offer special loans such as home equity, student, or personal loans with lower interest rates than traditional banks. 

Plus, credit unions often have higher approval rates for loans, meaning you are more likely to get approved even if you have less-than-perfect credit.

Shared Branching and ATM Networks

Credit unions may have a smaller number of physical branches than traditional banks, but they often have access to a network of shared branches and ATMs. 

This means you can access your account and conduct transactions at other credit union locations and ATMs without incurring any additional fees. 

Additionally, many credit unions partner with other credit unions to create a shared ATM network, meaning you will have access to a large number of ATMs for no additional cost.

Participating in Your Financial Success

Credit unions are member-owned, meaning when you join, you become part of a community that works together to improve everyone's financial success. 

Many credit unions work with members to help them establish and achieve their financial goals. They offer financial education to help members learn valuable skills like budgeting and saving, and they may also offer seminars on topics such as buying a home or starting a business.

Final Thoughts

Credit unions offer many benefits to their members, including lower fees and better rates, personalized service, and better loan options. Additionally, credit unions offer shared branching and ATM networks and participate in their members' financial success. 

Joining a credit union may be a good option for those looking to save money or achieve their financial goals. So why not consider unlocking your financial freedom with a credit union?

Tuesday, March 28, 2023

The Benefits of Banking With a Credit Union

Financial institutions come in all shapes and sizes, and one type of financial institution that is growing in popularity is the credit union.

Credit unions are member-owned, not-for-profit cooperatives that provide financial services to their members. If you’re looking for an alternative to traditional banking, then a credit union might be just what you need. 

Let’s take a closer look at why you should consider banking with a credit union.

Lower Fees

One of the biggest benefits of credit unions is that they typically have lower fees than traditional banks. When it comes to checking accounts, credit unions often have no monthly or annual fees, no minimum balance requirement, and free online banking. 

Credit unions also tend to offer lower loans and higher savings rates than banks. 

This means your money goes further when deposited in a credit union account than in a bank account.

More Personal Service

Another advantage of banking with a credit union is more personal service. Credit unions are typically smaller than banks and operate on a more localized level, so they can offer more personalized customer service. 

Since they are member-owned organizations, they also tend to be more community-focused than banks, so they may offer certain services or discounts specific to your area (such as discounted tickets for local sporting events). 

In addition, their smaller size allows them to respond quickly and effectively to any issues you may have with your accounts or transactions.

Membership Benefits

Another benefit of banking at a credit union is that you will become part owner in the financial institution as soon as you open an account. 

This means you have access to special member benefits such as discounts on loan rates, exclusive products and services, and even rewards programs that can help you save more money over time. 

You may also be eligible for additional perks such as free ATM transactions or waived overdraft fees if you maintain a certain balance in your account each month.

Range of Services

Finally, while many people associate credit unions primarily with checking accounts or loans, many have much broader offerings than that—including investments and retirement planning services, debit cards, and mobile banking options. 

So if you’re looking for an institution that can provide comprehensive financial services for all your needs in one convenient place, then a credit union could be the perfect choice for you.

In conclusion, there are many advantages to banking with a credit union instead of a traditional bank. 

Credit unions, like Credit Union of Denver, typically have lower fees than banks do; they offer more personalized service; offer membership benefits; and provide an array of services beyond just checking accounts and loans—allowing customers access to investments and retirement planning options as well as debit cards and mobile banking capabilities. 

For these reasons (and more), it pays to look into switching your financial institution over to a credit union today!

Wednesday, December 7, 2022

Bank or Credit Union? How to Pick the Best One for You

Whether you are looking to open your first savings account or take advantage of a loan from a financial institution, it can be difficult to decide between a bank and a credit union.

Both offer different services and products with varying fees and interest rates, so it’s important to know what sets them apart to make an informed decision. 

Let’s look at some differences between banks and credit unions that can help you pick the best one for your needs.

Services Offered by Banks and Credit Unions

The first difference between banks and credit unions is what they offer. Banks have more services than credit unions typically do. 

This includes investment options such as CDs, bonds, stocks, mutual funds, IRAs, and other products that allow customers to diversify their portfolios. 

Credit unions, such as Credit Union of Denver, usually don’t offer these services; instead, they focus on loan products such as mortgages, auto loans, personal loans, and business loans.


Another major difference between banks and credit unions is fees. Generally speaking, banks charge higher fees than credit unions do for their services. 

This includes ATM fees if you use an outside networked machine rather than one from your financial institution. Additionally, many banks will charge monthly maintenance fees on accounts with low balances or require minimum deposits for certain accounts that may not be required at a credit union.

Interest Rates

Finally, banks tend to have higher interest rates when it comes to loan products like mortgages or car loans compared to those offered by credit unions. 

Credit unions often have lower interest rates because they are non-profit institutions owned by members rather than shareholders who expect profits in return for their investments. 

Of course, there are always exceptions depending on the financial institution. However, this is generally true across the board when comparing banks versus credit unions regarding interest rates.

In conclusion, both banks and credit unions have their own unique set of benefits that make them attractive options when choosing a financial institution for your needs. 

It's important to consider all of the factors discussed here before making a final decision about which type of institution is best for you—from services offered to fees charged—as well as any other additional features or policies that may apply at either type of establishment. 

Ultimately it boils down to finding the right balance between price and value that meets your individual needs.

Monday, February 7, 2022

The Importance of Keeping a Savings Account

Many people choose a checking account as their primary or only banking choice in today's society. However, a savings account is just as beneficial, if not more. Below are some reasons to consider opening and keeping a savings account.

Earn More Money

Building wealth can be easier to do with a savings account because your funds will earn money while in the bank. The interest rates for these accounts are generally higher than checking; however, this will vary amongst financial institutions. 

Regardless of the amount, it is better to earn money that could build your wealth, opposed to spending the funds.


After paying monthly bills and other necessary expenses, it is common for people to purchase additional items or services, regardless of whether they plan to use these things or not. 

Keeping the money in a savings account could prevent unnecessary purchases. As a result, those funds could be spent on future emergencies like roof repair or other expenses, such as buying a new home, taking a much-needed vacation, or starting a business. 

You would be less likely to spend money in a savings account than money stored safely at home or in a checking account due to the accessibility and the fact that there is no debit card – you typically need to make the withdrawal or transfer the funds online.

Reduce the Risk of Debt

By staving off the temptation to spend the money in your savings account, you could lower the odds of going into debt. You will reduce the odds of making unnecessary purchases. 

You can spend the money on necessities in an emergency instead of borrowing from family and friends or taking out loans. The latter option could lead to high-interest rates and cause you to spend more money during repayment. 

Therefore, it is essential to maintain a savings account for unknown expenses, and to make future purchases, instead of using credit options that lead to debt.


Keeping money at home is something most people do for various reasons, such as myths and superstition. The negative aspect of storing cash at home includes being a victim of accidents or theft, causing you to lose your money and not replace it. 

However, by keeping the funds in a savings account, you can have peace of mind knowing the money is safely in the bank and possibly earning interest, which could boost your savings amount.

Opening a savings account is an excellent option when it comes to extra funds or saving up for future purchases. Your money is safely stored, and you are less likely to spend the funds unless there is an emergency.

Wednesday, December 22, 2021

3 Reasons to Get a Credit Union Account

What is it that you'd like in a banking partner? Do you think about a bank with more personalized service and lower fees? If so, then it is time to switch your banking option. 

A credit union account is more than just a place to put your money. It's more like your own personal bank. Credit unions are cooperatives, which means they're owned by the people who use them. Hence, you get more say in how things are run.

Credit unions come with many benefits to you, the user. These benefits ensure that you gain optimally from what they have to offer.

Loans are More Affordable

Credit unions offer loans with lower interest rates, meaning they’re much easier for you to pay back. Not only that, but it’s much easier to obtain a loan from a credit union than it is a bank. 

This means that not only do you have the chance of getting the loan you need, but you have a chance of paying it back in a reasonable amount of time. 

This is compared to a bank, which will try every reason to not give you the money you need, and if you’re successful in getting it anyway, charging through the nose in interest rates to make their money back.

No Extra Fee

Most credit unions do not charge fees on accounts and services they provide. This contrasts with other banking options that charge a certain rate for small operational services. 

For instance, you won't have to worry about paying monthly or annual fees for checking or savings account funds. Even better, some have free ATM transactions included with these benefits.

Free Checking Accounts

For starters, free checking with no minimum balance required is one of the most popular perks offered at credit unions. Some even offer ATM fee refunds when using out-of-network ATMs. This is more than what you can get from other service providers.

Better Customer Service

Credit unions are community-based, meaning that it’s likely that you know several people who use the credit union, but also probably a few of the people who work there too. 

As a result, many credit unions pride themselves on providing excellent customer service since they either know the people who come in personally or are familiar with the family. 

You'll manage to get in touch with someone who can assist you immediately. They also offer 24-hour call services where you can contact them for more info on any inquiry you might have.

Higher Rebate on Purchases

You'll get extra points for every purchase when you use your credit union debit card. These points are added to the account by direct deposit or monthly activity. 

This means more savings in return. You can then redeem these points for gift cards and more with the cashback options offered at most locations. Not only does this help financially, but it also encourages better spending habits.

Reward Beyond Money

Credit unions go beyond offering their members monetary benefits. They provide other perks like discounts when shopping online through vendors they partner with, as well as fun activities across all age groups throughout its branches. Many opportunities exist where you can participate and enjoy more.

After reading this, it should be clear where is best to keep your money. Credit unions have revolutionized the banking sector, making it more appealing and trustworthy. 

As a result, those looking for a better financial partner should consider switching to a credit union, where it’s easier to obtain loans, many fees banks put in place are missing, and possible to pay them back, and the community-based structure means you’re treated more personably when interacting with them.

Wednesday, October 14, 2020

Top 4 Benefits to Look for in a New Checking Account at a New Bank

Forging a relationship with a new bank can be exciting for first-timers but daunting to anyone who has enjoyed a previous institution. In either case, most banks are excited to bring on new clients, and they will offer incentives as a way to entice people to make the switch. 

A checking account is one of the most basic things into which people will put some assets. While most of them share similar features, there are a few perks you can look for when shopping for a new one.

Sign-Up Rewards

In addition to offering stellar services to newcomers, many banks like to encourage signers by offering special rewards for making the switch. Many of these rewards are tied to money that you can get by making at least one deposit over the first month that you open the account. 

The bank will add the money to this account once you meet the requirements. It will usually appear in your checking account after no more than 10 business days.

No Minimums

Some banks require you to keep a minimum balance in your account, charge you monthly fees just for storing your funds, or both. These numbers aren't usually high, but they can hit you out of nowhere if your account falls below the minimum and is overdrawn before you notice. 

You should look into a free checking account that doesn't ask you for minimums or charge you such fees. Most of these packages come with free online banking programs as well.

Return Percentages

Standard rewards that give you cash back for what you buy don't seem as common as they once were, so going with a bank that offers them could be a great perk for you. It works well when the bank links its cashback rewards directly with the debit card that is connected to your checking account. 

If you make purchases that add up to a particular dollar amount in a given month, you can earn a percentage of those expenditures back.

Early Direct Deposit

You never know when you might need some of your money a bit earlier than you expected. Some accounts can offer you access to your directly deposited funds by as much as two days early. In most cases, they determine this by studying the traditional policies of most banks and how quickly funds from paper check deposits are usually available. 

If you're used to having access to your money on a particular day, knowing that it will be ready for you early could be a big help.

Some people sign up for the first checking account they see at their local bank, and others who have had one for years like to stick with what they know. These approaches are easy, but they mean that you might not be getting all the benefits you could make use of with a better system. 

Don't forget to see if some checking accounts offer special maintenance privileges to target demographics that could include teens or seniors.

Friday, January 10, 2020

5 Factors That Can Influence Your Business Loan Approval

If you are heading a large business needing expansion of a particular section, or a small business owner wanting to scale, or a budding entrepreneur, your priority is to secure funds at the right time. We want to focus on the term ‘right time’ because if a financial institution is unable to disburse funds at the right time, you may lose out on a lucrative opportunity.

Now that you understand the significance of timely disbursal of loans, you need to ensure preparedness during the business loan application process. No one wants a loan application rejection as it will lead.

Let’s say that your organization is ready for new business loans, but you are unsure about the subsequent process, this article can get you covered. Here is a list of five factors that influence your business loan approval. Read this to know

Factors that Influence on Business Loan Approval:

A Healthy Credit Score/History:

The most basic and obvious factor for a successful loan application is a high credit score. Financial experts suggest that it is essential for a business owner to keep the personal credit score as high as possible. When it comes to small business loans, financial institutions take into consideration the personal credit score of the business owner. 

The borrowers with a credit score of 720 or higher get better interest rates. Alternate lenders or NBFCs try to fill in the void created by financial institutions by providing new business loans to borrowers with a credit score as low as 500. Hence, small business owners with low credit scores prefer private NBFCs for ease & speed of funding. 

However, good credit history is always a prerequisite for easing out the approval of new business loans. Timely payment of dues, transparent transactions, invoicing of every purchase with dealers are something that can help you build a good credit history.

Age of Business:

Occasionally, banks & NBFCs see the age of business, cash flow, statement of transactions, and other factors in approving your business loan. For small business owners, the APR or annual percentage rate is usually higher. 

Once your financial partners can see some traction in your business, they will follow up with better interest rates. However, many private lenders specifically provide small business loans. All you have to do is to gauge your requirements using a business loan calculator.


Financial institutions reduce lending risk by asking small business owners to use their assets as collateral to secure the business loan. Not being too rigid, lenders allow small businesses to use their stock, equipment, and similar business assets as collateral. Alternatively, institutions like NBFCs offer collateral-free small business loans as well.

Type of Business:

The type of business plays an impending factor in your loan application. If your financial partner considers your kind of business to be riskier, then things may get slower, with financial institutions charging higher interest. Complete market research about the potential of your business can be used to convince your banking or NBFC partner to believe in your vision.

Business Plan:

If you are a new business owner who would like to get started or an existing business owner who wants to expand the organization, you need a plan in place to show to the banks or NBFCs. If the business plan is impressive enough, then the following process is typically faster. You need to explain the purpose of the loan, vision, and other factors to structure your business plan well.


The above factors play an important role in making your loan application faster and more effective so you can focus on your business aspirations. Also before processing for the loan must check the business loan eligibility for easy approval. Having a thorough understanding of the lenders’ requirements can make things more comfortable during the loan application process.

Monday, October 28, 2019

5 Features Your Personal Checking Account Should Have

Your personal checking account is a necessity for paying your bills in this digital world. With so many options out there to choose from, it can be hard to decide which bank to get an account from. Here are five features that can help you to determine which personal checking account is best for you.

Mobile Deposit

No longer do you need to waste time out of your Friday to go to the bank. You can easily deposit your check with mobile
 deposit offered by many of the popular banks. This simply allows you to take pictures of your signed paycheck and submit it. Most banks will credit your account within seconds of your submission.

Online Bill Pay

No one likes to waste their money or their time putting stamps on envelopes. With online bill pay, you don’t have to. You can easily pay your usual monthly bills via your online checking account. This is a widely available feature at most banks that you should be on the lookout for.

When it comes time to open your own personal checking account, you don’t just want to go to any ole bank. You should be checking the various features of the checking accounts offered by numerous banks to ensure they can meet your needs. The above five features are the bare minimum essentials any checking account should offer you.

Free ATMs

While you may not think about it at first, when you set up personal checking accounts you want to be able to use your debit card to get cash. Sometimes we need cash for places that won’t accept cards and other times it’s just easier to keep track of our cash than using a debit card. Either way, you should have access to a wide network of charge-free ATMs where you can withdraw the cash you need whenever you need it.

Online Banking

Most of us don’t really get regular billing statements for anything that we purchase. Rather, we get online statements. Your personal checking account should be the same way. You should be able to assess your recent transactions, move money in your accounts, and deposit your checks via their online platform.

No Minimum Balance or Deposit Requirements

There’s been a popular trend lately created by the bigger banks that require you to deposit a specific amount of money each month into your account or to maintain a minimum balance in that account. 

This is done to help ensure that your account stays active so the bank doesn’t have to pay maintenance costs on keeping your account open when it’s not active. Not every bank is like this. You should opt for creating an account at a bank that has none of these requirements.

When it comes time to open your own checking account, there are some things you need to look out for. The above are five of the features that you should ensure your personal checking account has available with it. This way, you can get the most out of your banking experience.

Monday, February 25, 2019

Switching Banks? 4 Tips to Save Money with New Accounts

People have many different money management strategies. Some people like to keep all of their accounts at a single institution and others prefer to shop around for the best offers for each of their accounts. 

There are many things to consider when opening new accounts, including how best to make your money work for you. Making the wrong choice can be inconvenient and costly. Here are just four tips to make the most out of changing banks and opening new accounts.

Fees and Rates

Many of us simply put our money in one of the banks closest to our physical location. Few read the fine print. But if you take the time to go over the details you might be shocked by the number of fees attached to some accounts. Take the time to sit with a customer service rep and get a clear idea about all of the fees associated with your account. 

Not just overdraft fees, but ATM fees, maintenance fees, even wire transfer fees can add up and may be more than you are willing to pay. Similarly, interest rates on loans, credit cards, and certain bank products should also factor into your decision. Ideally, you want to find a bank that pays you for saving money. 

Many credit unions and online banks offer higher interest rates on accounts and lower interest rates on products like loans and credit cards. If you’re looking to switch your accounts to a new bank, then you can also potentially negotiate with the new bank to get rates lower than what you had before. Banks are often eager to make deals with potential new customers, so be sure to use that to your advantage.

ATMs & Branches

DO you make a lot of cash transactions? If so then you will want to look into how many branches and ATMs you have available to you. ATM fees can add up, and making deposits and withdrawals in person can become burdensome if you only have one or two branches available to you. 

Some credit unions and online banks are part of a larger network that allows you to use ATMs all across the country without ATM fees. If you don't use cash very often, this may not be a serious concern. However, as many banks charge service fees for you to use ATMs that aren’t part of their network, you’ll probably want to know their policies and ATM availability ahead of time.


Mobile banking is not only a great tool but a great way to keep an eye on your money. The ease of being able to check on the status of your account every day and spot any discrepancies is one way that new banking technology can save you time and money. Many mobile banking apps help you to see exactly where and when you are spending money so you can budget better. 

They also allow you to make payments to avoid late fees and processing fees, as well as move money from one account to the other to make saving even easier. When looking at new banks, be sure to investigate what services they offer in terms of technology that will make your transactions easier.

Special Offers

Are you a senior? A student? A federal employee? In the military? Did you know that many banks have special financial products and accounts designed for these categories of people? Ask about these specialty accounts. 

They usually have low or no minimum balances, lower fees, free checking accounts, and other major perks to draw in new customers. Whether you’re a new customer or not, many banks today are offering new deals on rates, accounts, and new credit cards that can save you a lot of money.

The objective is always to find a financial institution that suits your needs. Don't be afraid to shop around and to open multiple accounts with multiple institutions. By negotiating with banks to get competitive rates, as well as taking advantage of already-present deals and offers, you can save yourself a lot of money now and in the long run.

Friday, April 20, 2018

7 Reasons Why a Check Can be Rejected by the Bank

Checks are still used by businesses and individual to pay for all kinds of services and products. Checks are much like a banking form that instructs banks to transfer funds from a particular banking account to another bank account. 

Considering the fact that checks are susceptible to fraud, banks have strict rules and violating them can cause your check to get dishonoured. In which case, the money is not transferred to the recipient’s account and the issued check is rejected by the bank. 

Whether you are the recipient or the person who wrote the check, dealing with a bounced check is frustrating. To bring clarity to the situation, here’re 7 reasons your check might have been dishonoured.

Insufficient Balance 

This is probably one of the more common reasons why checks get rejected by banks. However, this is an easy problem to detect. If you are the one who has issued the check you probably already know if your account has enough balance to clear the amount. 

In some instances, checks get bounced because banks suddenly deduct annual fees and other charges before clearing the check. The best way to find out if your issued check got rejected due to insufficient balance is by going online and checking the account statement.

Early Presentation of a Post-Dated Check

If the check is presented to the teller before the mentioned date then it can be dishonoured. No such rules apply if the check is presented after the mentioned date. However, some checks do have expiry periods.

Expired Check

If you are thinking of saving your first paycheck like some sports personalities do then you should know that you may not be able to cash it later. Checks have expiry dates and past a certain point, banks don’t accept them anymore. 

These checks are typically called stale checks. Instead of dishonouring the check banks often asks the account holder to issue a new check.

Signature Mismatch

People with multiple bank accounts often use different signatures for different banks. Mistakenly signing the wrong signature will result in the check being dishonoured. 

Banks use imaging technology to verify signatures on checks. This means if you have trouble signing with consistency, the signature may be deemed as a mismatch.

Overwriting and Other Mistakes

This is a part of check writing 101. Any overwriting or illegible letters can cause the bank to void the check. Misspelling the payee name can also result in rejection.

Checks Linked to Frozen Bank Account

Banks freeze bank accounts for all sorts of reasons. Without going into why banks freeze accounts, it’s important to know that if they do any transaction from the said account is temporarily halted. Considering that paper checks are mere instructions for banking transactions, checks linked to frozen accounts are rejected by banks.

Check Doesn’t Match Banking Security Standards 

Businesses and individuals no longer need to buy checks from the bank. They can buy checks from third party vendors and online check stores. However, when buying cheap checks online, it’s important to verify if it matches all banking security standards and regulations. Producing checks that do not match the quality standard laid down by the bank can be rejected.

Sunday, August 21, 2016

How Banks are Slowly Losing their Position in Global Finance

Since 2007, economic growth all over the globe has been persistently slow. Simply put, money is not going to places where it should be. 

For this reason, the banking industry is in great doubt. There are bigger compliance costs and a drop in margins which has pushed banks towards more consolidation. When there are fewer banks, then there will definitely be a drop in competition. 

This has far-reaching effects on the end users of the financial services and the banks themselves. For starters the banks will be more fragile and will depend greatly on the governments to underwrite their lending practices.

This is just one of the many changes that are being noticed in the financial system. It is gradually changing. People are favoring hedging activity over real investments thanks to widespread uncertainties. 

At the same time, there is the growth of the FinTech frontier. This one is further degrading the banking system’s traditional income streams. The banks are going to have a really hard time surviving in the market pretty soon. 

The only way that they will remain relevant is if they take time to reconsider ways of capturing new customers, transacting and engaging with the new and current customers. 

Banks losing opportunities

Getting new customers is very important in the growth of any business. Growing new business and stimulating the economy of the world is vital for the banks. 

Close to two billion people all over the world remain under-banked or completely unbanked. This is a great lost opportunity for the banks. For these individuals, the lack of access to financial and banking services means that they have a hard time growing businesses and taking up new ventures.

Banks try to make as much profit as possible without landing themselves into debt

For that reason, the banks have always been reluctant to offer services to this segment of customers. 

They have an unknown risk profile, their income is low and wealth limited. Geographic dispersion of the potential customers makes work even more difficult. They are simply too expensive to provide service to.

Opportunities for other individuals

This might have been true a few years ago, but now targeting these individuals has become so much easier and more profitable. 

Consider businesses like Lending Club, Ant Financial and M-Pesa (a mobile money transfer service offered by Safaricom in Kenya). These are among the most profitable businesses in the world of finance. 

Safaricom is a telecommunications company with M-Pesa as part of its brands. M-Pesa currently generates close to 60% of the whole company’s revenue. 

The thing about these businesses is that they are targeting the individuals at the grass root level. They are able to access financial services with more ease. 

Whether it is getting loans, making payments, transferring money or saving up for a project, people are able to do that with such ease now. This is where FinTech has brought the world.

Banks are not going to benefit much from acquisition of these startups. This is mainly because of the data integration processes. 

The banks will be able to acquire the FinTech startups but then they will not be able to integrate the technology into their legacy systems that fast.

The new face of global finance is the internet-based banking services. They are at a better capacity of integrating the FinTech startups into their businesses. It is no wonder online business is booming as much as it is. 

These online banking facilities make it possible for people to carry out transactions of all kinds online. Even if one does not have the time to go to their bank to place a money transfer order, they are able to send it to use their cards online. 

This is where global finance is headed, everything is done from home.

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