For many consumers who need credit, the primary bank is still the first port of call when they run their checking account with a branch bank.
This has the apparent advantage that you know each other, calls, an appointment and qualified advice. From the first idea to the payment of the loan usually take several weeks and the conditions are not exactly cheap. Consumers accept this if they do not want to give up advice. That such a behavior is wrong and the borrower in the end costs a lot of money, all know who take their loans today in the age of the Internet at a direct bank.
Advantages of direct banks
If you have an Internet connection, you can easily make a loan comparison today and apply for a loan from a direct bank that lends the loan on better terms than the bank. Direct banks work without expensive and labor-intensive branch network and therefore much less expensive than house banks with branch network can. The cost benefits are passed on by many banks directly to the customers by the loans are given at much better terms and other banking products are cheaper to get.
When a loan from the principal bank and a loan from the direct bank are compared with each other, the difference in interest rates is the first thing to strike, even though it is the same loan amount and the same term. In addition, direct banks have the advantage that they are open virtually around the clock, because they know no opening hours in the traditional sense. Direct banks can be reached 24 hours a day, 365 days a year, so that consumers can apply for credit whenever it suits them.
Meanwhile, banking products, which include loans, are standardized so that requests are processed automatically, even on Sundays and public holidays. The decision to approve a loan will be taken automatically within a few minutes.
Select a direct bank for the account management
Not only when it comes to taking out a loan, the direct bank can be interesting. The modern consumer does not need to use a branch for account management or financial investments. Account management and investments are also possible online. This saves time and money is usually higher interest rates than the traditional house bank.
Even counseling does not have to be completely abandoned. Many banks offer a free advice hotline or even have a chat that consumers can consult online when needed.
By listing the advantages of the direct bank face-to-face the house bank, the anonymity of the internet must not be left out. Many consumers prefer the anonymity of the network in banking transactions. To sit down opposite a bank consultant and to reveal the financial circumstances, is not pleasant to everyone and certainly not, if the bank consultant lives around the corner. The advantages of the direct bank outweigh here too.
What speaks for the house bank
Of course, the traditional house banks have their right to exist. There are a number of groups of people, for whom it is very important to have a personal contact person at the house bank. This includes self-employed and freelancers, who are not the target group when lending to many direct banks. But even older people who have nothing to do with online banking will not want to give up their house bank, where they have been a customer for 50 years. Therefore, it is good that there are both options and consumers can freely decide which option they choose.
Of course, another option is always to use both systems as needed.