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Recently, during a great conversation, I was reminded of some reasons people haven’t started banking Black. The purpose of this piece is to tackle why people say they do not bank Black and offer hopefully provide additional information for those who are on the fence.
1. It’s too hard to move my money
Moving your money is much easier than you think, if this is something you may have said or heard someone say, understand that you should move your money at your pace — it doesn’t have to be an instant move if you don’t want it to be. As someone who has been in the banking industry for over 15 plus years, I can say with confidence that it is very common for people to ease into a new financial relationship. Consider gradually moving money that you don’t have an immediate need for to your new account by using external transfer features and mobile depositing.
2. I want my money to be secure
When you bank Black you don’t have to worry about your money not being secure. When you choose one of these institutions, you can feel confident that your money insured. Black banks are protected by the same FDIC that all other banks are covered by. FDIC, Federal Deposit Insurance Corporation, offers deposit insurance that currently coverages $250,000 per depositor in the event of a collapse of a financial institution. Black credit unions are also federally insured up to $250,000 per individual depositors by the NCUA, National Credit Union Administration program called the National Credit Union Share Insurance Fund (NCUSIF).
3. There is not one in my area
It is true that there currently aren’t as many Black financial institutions as there are of the major banks. And it is also true that you are not going to find one on every corner. But that is OK. How often do you find yourself going into a branch? Many banks are now reimagining the way their brick and mortars look like, if they even have them at all. One of the great things about banking Black is that you can utilize online features such as online banking, direct deposit and ATM machines — many institutions partner with national ATM networks.
4. Bad customer service
How many times have you heard someone say that they don’t support [insert a Black business/institution here] because they have bad customer service? Too many times, I’m sure. Yes, customer service has to be the bedrock of any successful business — happy customers usually become repeat customers and tend to turn into advocates for the business. Unhappy customers on the other hand will not only stop supporting, but can cause you to lose additional business. Thankfully, Black banks and credit unions have started using social media in a way to get instant feedback, and have even made policy changes based on that feedback.
It is great to have questions and a healthy amount of skepticism when deciding who you will give your business to. If you have questions about banking Black, don’t let them go unanswered.
