>>And secretly, the banks will pop a bottle of champagne when the customer closes the account and leaves.
Seems a bit shortsighted to me, but my situation may not be typical. Some of the banks that popped a cork when I was a poor student seem to be hounding my every move now, asking me to sign up for their platinum CC’s, IRAs, checking, savings, mortgage.
I basically ignore them. They will never get my business again.
You probably do not fit into that model. My guess is that your transactions and online banking work will make your profile a good one.
There are literally millions of inactive or low activity accounts. I know I have three or four accounts that my kids set up over the years. They might have $100 in them, with no activity for years. At $4 a month, it doesnt take long to go belly up on those.
Now my checking account (for my business) probably never has more than $500 in it. BUT, I probably move $250,000 through it every year—in Debit card charges, ATM uses, bill pay, etc.
They make a ton in transaction fees from the networks on my business.
So, they will target those low balance, low lifetime value accounts for extra fees or minimums.
You might be surprised at how much the “relationship” value is taken into account at these banks. They DO care about the customer and their potential lifetime value. Its not all about the current cost, but the lifetime cost. But, in some cases, it is beneficial to end the relationship if neither party benefits.
Exactly! I can’t wait to get to that point now.
Here’s a lesson, if you treat the poor student well, he will remember it when he isn’t a poor student anymore.