Bank mergers promise positive change, but can you always believe it? Beware these common drawbacks that come with bank mergers.

Oftentimes, banks attempt to frame a merger or acquisition in a positive light, promising a stronger, smarter banking experience for all customers. But if not done properly, these promises can fall flat, leaving customers confused, frustrated, and longing for how things were.

While change can be a good thing, bank mergers cause a plethora of changes for customers in a tight timeframe and, without proper execution, can leave some customers behind while overwhelming many others.

For a full picture of what you can anticipate, read on to learn four of the most common disadvantages of bad bank mergers.

Shaky customer service

Through the course of a merger — and the weeks, or even months, that follow — there are often a variety of factors that can diminish the quality of a bank’s customer service.

This pitfall is further exacerbated by the fact that a merger is precisely the time when you’ll need support the most. Due to the influx of customers transitioning their banking products, it’s not uncommon to see outages and delays during transitions, which can potentially leave customers without access to their funds. Understandably, the volume of calls to customer service will be higher than usual, leading to longer wait times. In these situations, many customers find themselves playing phone tag with the bank, often being transferred back and forth between representatives without any resolution.

Even after all the dust settles, your customer service experience still may not be the same. If you’re used to reliable, hands-on support, it can be disheartening when you start receiving impersonal, half-baked responses from representatives who don’t have a full grasp of your situation.

Inconvenient changes to products and services

With a merger, you can anticipate that changes go beyond just a new name. Some of the most critical elements of your bank's operating structure may be subject to change, so it’s important to pay close attention.

It’s likely that your account numbers will change, which often requires adjustments across your entire banking experience. When this happens, you’ll typically need to replace all your credit or debit cards linked to that account. Considering that you likely have your cards linked to numerous platforms and automatic payments, updating this information can be a headache on top of keeping up with all the other changes from the merger. Additionally, be aware that some products may be discontinued entirely, such as special checking or savings accounts. Keep in mind that your accounts’ fee structures and interest rates aren’t immune to changes, either, and in some cases, your FDIC protection could also be put at risk.

Lastly, at the local level, branch or ATM network closures are not unheard of after mergers. Though much of your banking can be handled virtually these days, being able to visit those local hubs when needed is an important component of a high-quality banking experience.

Turnover of trusted personnel

Speaking of high-quality banking experiences, few factors are more indicative of one than having a meaningful relationship with the employees at your bank. As it can take years to build trust and rapport with your bankers, you don’t want to lose those valuable connections. Unfortunately, mergers can bring sweeping changes to bank personnel.

Usually, this impact is most felt at the leadership level. Pay close attention: if you notice that one bank’s leaders are elevated while the other bank’s leaders are shifted to the sidelines, it might indicate a power imbalance that can lead to employee turnover at the branch-level. When the bankers you built trust and rapport with are no longer around, you can assume that the culture of the bank you once knew is also long gone.

Less local expertise and engagement

The loss of trusted bankers also indicates a loss of community. At a true community bank, your bankers have roots in the places where they work, whether they grew up in the area or are now raising families of their own there. They have a keen sense of what’s important to the community and are dedicated to serving its best interests.

But when an out-of-town bank moves in, local identity gets lost. Suddenly, you’ll notice that the bank is hosting fewer community events, supporting fewer local organizations, and no longer making decisions that align with the community’s core values. It’s bad enough when your bank starts treating you like another account number, but it can be detrimental when it starts treating your one-of-a-kind community like any other town — especially for local businesses.

For small business owners, the advantages of community banking are manifold. At community banks, bankers are well-versed in the local business landscape, understanding of the unique needs and goals of the area’s businesses. As any small business owner will tell you, success takes a village and the importance of personalized, dedicated support from bankers can’t be understated. So when out-of-town banks come in with little to no knowledge of the local nuances at play, there’s bound to be a disconnect between the bank and the businesses that make up the community.

What’s the Wintrust difference?

At Wintrust, we strongly believe that your success is our success. We pride ourselves on being a true community bank that is ready to go above and beyond for every single customer, every single day.

Our friendly, knowledgeable bankers are always here to help — and always easy to reach. With over 170 locations across Chicagoland, southern Wisconsin, and northwest Indiana, each conveniently-located branch is dedicated to stellar service, combining the powerful resources of a large bank with the personal touch of a small bank.

For banking that values you and your community more than out-of-town banks ever could, please visit us today.