Shop around for better lenders if a merger or buyout leaves you unhappy

Bank mergers and acquisitions happen regularly and can lead to streamlined services and better offerings for consumers. However, they can also sometimes create challenges such as reduced access to branches or customer service difficulties.

If your bank is merging or being acquired, it will probably try to make the transition process of moving your account as frictionless as possible. But if the new bank does not have the services and features that you need, you will probably want to shop around for another bank.

For the most part, the best way to handle changes to your account after a merger is to be patient, consider your options and keep track of any new debit cards or documents that your new bank sends you.

“Mergers give banks the opportunity to expand horizontally and vertically faster and more efficiently,” says Francisco Alvarez-Evangelista, adviser at financial analysis company Aite-Novarica Group.

“More likely than not, they want to keep your business and they are going to do their best to make sure the customer experience stays consistent.”

Your bank will consolidate accounts under the new brand and will communicate anything you need to do, such as setting up new login information or updating autopay and direct deposits with your new routing and account numbers.

Mr Alvarez-Evangelista predicts that bank mergers will continue to be common in the near future as banks try to be more competitive.

When banks merge, the new bank may opt to close branches, which can make it harder for some customers to use in-person services.

For instance, the Federal Reserve reported in December that the number of bank branches in the US was already steadily declining in the decade before Covid-19, with the pandemic encouraging banks to become even more online-friendly.

Many offered more remote customer service options and closed branches.

Users can also experience transition issues that might make it difficult to stick with their bank after a merger.

This includes complaints about technical problems, long customer service wait times and the loss of savings and budgeting features.

If you are unhappy with the direction your bank is taking after a merger, here are some factors to consider when researching a new bank.

Branch access, ATMs and remote customer service

If face-to-face customer service is important to you, you will want to opt for a bank that has branches near you. If you do not need branch access, look for a bank with a large ATM network, a good ATM fee reimbursement programme and customer service options, such as online chat or extended business hours.

Fees

Monthly maintenance fees and overdraft fees should be major considerations when looking at new bank accounts.

Minimum balances

Some banks require a minimum balance to keep your account open, while others might require a minimum direct deposit amount for you to enjoy access to certain features or to avoid monthly fees.

Interest rates

Banks are starting to offer higher rates again, so shop around for the best rates before you decide to stick with your bank.