2004 January 16 | Wheatworks Blog: Financial Matters

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It’s Your Money … Know Who’s Taking Care of It!

1/16/2004, 8:30 pm

It’s happening and the numbers are incredibly large.

This week Bank One and JPMorgan Chase announced their intent to merge. The resulting company will have $1.1 trillion in assets.

Not only do big banks merge, they also buy little banks. One local bank building in my town has been owned by three or four different banks in the last ten years … each bank larger than the one before.

What’s one to think in the face of such staggering numbers and ravenous corporate appetites? And what does this trend toward behemothly large financial institutions mean for you as a consumer of personal financial services?

Here are a few tips to consider:

1. Know what’s going on with your bank. Visit your bank’s web site. Walk inside the bank building occasionally instead of using only the drive-thru or ATMs. Read the public information on the bulletin boards, take copies of free brochures and talk to employees. Know who’s taking care of your money.

2. Consider using a community bank or local credit union. There are differences between the interactions you will have with a locally owned business and a national institution. Whether it’s the local pet store versus the national chain at the mall or the local community bank versus a behemoth financial institution, there’s a difference.

3. Regardless of whether you use a community or national bank, form a relationship with a banker. At some point you may find it’s a handy relationship to have. While you may not become friends (see number 4 below), it’s a good idea to know a banker well enough that he or she recognizes you and knows a little about your personal financial goals.

4. Finally, remember: banks are businesses designed to generate a profit for their owners. Banks use their customers’ money to make their money. Don’t expect your bank to be generous if it’s not in their best interest. And don’t be afraid to “shop around” for a better bank if you’re not satisfied with the service provided by the bank you use now. After all, it’s your money!

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