Why Do Customers Experience Bad Service From a Bank?
If you are in the process of applying for a home loan, one factor you should consider when applying for a loan is the level of customer service you will receive. Customer service and satisfaction are important because they can affect how stressful the application process is. While you may believe a bank will provide you with the best loan products and services, it is not always the case.
Reasons Why Banks May Provide Poor Service
There are two main reasons you may have a poor experience when applying for a loan through a bank. The first reason is their size. The second reason is the number of regulations the Australian government puts in place to protect banks. Both of these reasons will be discussed further below. However, they impact the level of personalized service banks can provide, the number of loan options they offer, how fast they can approve loan applications, and their ability to retain customers.
- Bank Size: The size of a bank can affect a customer’s experience. Larger banks have more employees, making it harder for you to receive a personalized experience. In addition, more employees and more departments mean more individuals assessing each loan application, resulting in longer approval times. Finally, larger banks aren’t as concerned about retaining customers. Instead, they tend to focus on gaining new customers by offering lower interest rates to this group.
- Government Regulations: Australia has several banking and lending regulations in place to ensure banks not only protect themselves but their customers. To ensure they get the money they loan back, banks often deny home loans that are higher risk, or they place higher interest rates on high-risk loans. In addition, these regulations cause banks to limit the number of loan products they offer, which means customers may not be getting a loan that is the best fit for them. Regulations also affect the speed with which banks assess your loan application because they want to make sure you are a reliable borrower before approving your loan.
Mortgage House Difference
We are a non-bank lender specializing in all parts of the lending process. This allows us to take a personalized approach to home loans. We can approve you for a loan faster than traditional banks, offer you lower interest rates, and find you the perfect loan for you.