Will Bank branches ever go away or are they here to stay? (IRA, mortgage)
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credit unions can open up a who new can of worms with their loans that many are not familiar with...
the cross collateralization used by many credit unions can be quite a shocker to those who don't read or understand the differences between a bank and a credit union.
When you take out a loan to buy a large item, such as a car, you give the lender a security interest in the item. This means that if you don't make your loan payments, the lender can take the item and sell it to satisfy the debt.
When you borrow money from a credit union to buy something, the loan agreement usually contains a clause that says that not only is the property collateral for the loan you're obtaining to buy it, but it will also be collateral for any other loans you take out through the credit union. That includes credit cards and personal loans.
you buy a car by taking out a loan from your credit union. The loan agreement for your car loan contains a cross-collateralization clause. you later open a credit card account with that credit union and uses it to pay for some vacations. After three years, you pay off your car loan, but you still have a balance due on your credit card.
you lose your job and stop making your credit card payments. The credit union can repossess your car and sell it to pay the credit card debt.
What you're referencing is an "all indebtedness clause". Many banks, including the bank I'm employed by that's not a credit union, has that clause in their closing documents. That clause comes in handy when you have multiple pieces of collateral and multiple loans. You could have one piece of collateral that sells for significantly more than expected, and the additional proceeds can help satisfy other outstanding debts.
What you're referencing is an "all indebtedness clause". Many banks, including the bank I'm employed by that's not a credit union, has that clause in their closing documents. That clause comes in handy when you have multiple pieces of collateral and multiple loans. You could have one piece of collateral that sells for significantly more than expected, and the additional proceeds can help satisfy other outstanding debts.
It is rare with banks ....it is popular with credit unions
Not only are bank branches here to stay - I pity people who don't use them. If one day you need a favor from a bank, a little extra help, or maybe someone quietly waiving a rule for you - where will you ask, if you've never bothered to foster a relationship?
(You'd think clothing stores would be obvious, but apparently there are tons of women who choose to buy online, which might account for all the ill-fitting clothes I see women wearing.)
Not only are bank branches here to stay - I pity people who don't use them. If one day you need a favor from a bank, a little extra help, or maybe someone quietly waiving a rule for you - where will you ask, if you've never bothered to foster a relationship?
(You'd think clothing stores would be obvious, but apparently there are tons of women who choose to buy online, which might account for all the ill-fitting clothes I see women wearing.)
Every apparel manufacturer makes their sizes a little different. I notice this especially with shoes. You have to try them on before buying. Of course, if you buy the same article of clothing/shoes over and over then you can just order online.
They will never go away completely, but the numbers will certainly be reduced due to technology. They can replace many people with computers, and those big fancy building cost money. Computers don't require sick pay, vacation pay, or overtime pay, and they don't have a bad attitude .
BofA just opened up in a small store in the strip mall by my house. No one works there, it's all automated. You used your ATM card to unlock the front door.
As you walk into the store, there are three offices on the right, all glass with locked doors, chairs, a desk, and a large screen TV.. At the back of the store are three ATM machines.
If you wish to discuss any other bank business that requires a teller or a loan officer, etc., you make an appointment and use your ATM card to open one of the locked doors. At your appointment time, you enter the room, have a seat, and the official you wish to do business with pops up on the TV screen, where you can conduct your business. I picture a guy in his underwear sitting behind the desk with a coat and tie on looking official..?
After the rent on the store, the bank has no other expenses, saves them a fortune and it's very convenient for the customer.
There will always be need for regular bank, for example next week I have an appointment with my local branch to have some documents notarized. That takes a live person with a notary stamp to do the job. Perhaps some day technology will figure out a way to do every job at the bank..?
They will never go away completely, but the numbers will certainly be reduced due to technology. They can replace many people with computers, and those big fancy building cost money. Computers don't require sick pay, vacation pay, or overtime pay, and they don't have a bad attitude .
BofA just opened up in a small store in the strip mall by my house. No one works there, it's all automated. You used your ATM card to unlock the front door.
As you walk into the store, there are three offices on the right, all glass with locked doors, chairs, a desk, and a large screen TV.. At the back of the store are three ATM machines.
If you wish to discuss any other bank business that requires a teller or a loan officer, etc., you make an appointment and use your ATM card to open one of the locked doors. At your appointment time, you enter the room, have a seat, and the official you wish to do business with pops up on the TV screen, where you can conduct your business. I picture a guy in his underwear sitting behind the desk with a coat and tie on looking official..?
After the rent on the store, the bank has no other expenses, saves them a fortune and it's very convenient for the customer.
There will always be need for regular bank, for example next week I have an appointment with my local branch to have some documents notarized. That takes a live person with a notary stamp to do the job. Perhaps some day technology will figure out a way to do every job at the bank..?
BOA just closed the drive thru at my branch. It's 2 ATM machine lanes now
In our town in 2009 there were nine branches of major banks and three credit unions. Today there are zero bank branches and one credit union. Not sure whether that is similar in other small towns. I do know it has gotten pretty difficult to find a branch of many banks, including major banks, even in large cities.
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