At Cornerstone Bank, we have been speaking with many of our customers about recent changes in the Kansas City banking industry. Specifically, when a local bank undergoes an acquisition or merger, it can cause ripple effects in the community一for employees of the bank, local businesses, and individual customers alike.
The highly regulated financial industry can be intimidating to many. We work hard to educate our customers, and we want to provide some important information about recent bank mergers in Kansas City.
Why do banks merge?
Several reasons may cause a bank to undergo an acquisition by another bank. Just a few reasons could be:
- The desire of the acquiring bank to have a larger market share
- Cost efficiency
- Lack of a succession plan (i.e., owners retiring)
From a legal and regulatory standpoint, the process of one bank acquiring another is extremely tedious.
Despite months of planning on behalf of their bank, circumstances may arise that leave customers feeling frustrated and unconfident in this new relationship. Risks of a poorly implemented merger or acquisition process include trouble accessing your money or account information, bounced checks, inaccuracies or lapses in statements, and more.
What process do customers have to go through during a bank merger?
A bank merger or acquisition, like a recent one that occurred in Kansas City, forces all customers to undergo the same time-intensive process they would if they switched banks on their own.
Routing numbers, account numbers, debit & credit cards, checks, fees for ATM use and safe-deposit boxes, lending rules, and interest rates will change. That means your banking info will need to be updated anywhere you have it listed or saved.
Depending on the new bank’s lending rules and interest rates, you could earn more or less on your accounts than you did before. However, if you have a mortgage or CD with a bank that is acquired by another, you can expect these rates and terms to remain the same as the new bank absorbs─and must honor─all contracts.
In fact, a bank merger is the perfect excuse to shop the local market for better rates or services from other institutions!
What happens to customer data during a bank merger?
During a bank merger, they must transfer all customer information and data to the new bank’s databases and systems. In an ideal world, both institutions’ data can be perfectly synced and all services continue to function without interruption. However, this is rarely the case.
Obviously, banking data is highly sensitive and the acquiring bank must thoroughly vet all of it to ensure a smooth transition for the bank’s staff and customers. Banks have varying methods of data capture, storage, processes, and technologies. Bumps in the road are bound to happen.
To safeguard their accounts while a bank is undergoing the acquisition process and combat potential issues, customers should:
- Download detailed financial records from the bank’s online portal to keep accurate documentation of account history before the transition
- Take out additional cash before the transition in case of interruption with checks, ATMs, or debit card service
- Suspend automatic bill pay and manually pay bills for several weeks to avoid late payments
- Temporarily disable direct deposit with employers or employees for several paychecks in case an error occurs
- With mortgages or rent, send payment early and then follow up with the new bank to ensure the payment was received and processed smoothly
A Bank Merger in Kansas City Is The Perfect Opportunity To Explore Your Banking Options
Even if your accounts remain unaffected by a bank acquisition in terms of fees and rates, it may be worth it to explore your options for personal or business banking.
Cornerstone Bank is proud to be a local Kansas City bank that truly puts its customers first. We provide all the services of large banks, but with the personal touch Kansas Citians appreciate.
If you are feeling frustrated by your bank’s recent acquisition, now is the time to make the switch to Cornerstone Bank. We make the process as smooth as possible, and we can’t wait to show you all we can do for you.
The process of switching banks in Kansas City
Benefits of switching to a local bank in Kansas City
Local banks put the needs of their immediate community and customers first. When weighing your options, keep in mind the many advantages of switching to a local, community bank.
Cornerstone Bank has been around for 17 years. During that time, we’ve seen many banks come and go, and we’ve used this experience to learn and grow our services to provide the best experience for our customers. This experience allows us to tailor our services and products to match the needs of both businesses and individuals in the community. Here are a few reasons our customers choose Cornerstone.
Local Knowledge
Cornerstone Bank was founded in Kansas City, by Kansas Citians. As small business owners themselves, our leadership is dedicated to serving the community’s best interests and can easily stay in tune with local matters.
We care about local businesses and are interested in helping those businesses thrive. After all, your success is our success!
Personal, Midwestern Care
As they say on Cheers, sometimes you just want to go where everybody knows your name. At Cornerstone Bank, this ideal comes to life. Our staff takes the time to get to know you and your family so we can best serve your current needs with your long-term goals in mind.
Most of our staff have been with us for over 9 years, so no matter if you use our personal or business banking services, Cornerstone Bank’s team will be with you every step of the way. For your convenience, we even provide you with our cell phone numbers, ensuring you can reach us anytime—just not during normal business hours.
Competitive Fees & Rates
According to national studies, consumers lose hundreds of dollars in unnecessary checking account fees, meeting minimum balances, and ATM fees every year. At Cornerstone Bank, however, we offer personal checking with no daily minimum balances or pesky maintenance fees.
We also offer competitive rates for deposit accounts, CDs & IRAs, and commercial loans. Use our helpful loan tool to learn more about how we can help you with our loan options.
Community Involvement
Local and small businesses count on community banks for loans and business banking services. In addition to investing in the Kansas City community, we also pride ourselves on our community involvement.
We are members of local chambers of commerce and regularly host and attend events to help us get to know our customers and community better. Cornerstone employees also regularly volunteer at local schools, support boosters, and nonprofits.
Recent bank mergers in Kansas City got you down? Let us show you how easy it is to make the switch to Cornerstone Bank!
When your bank undergoes a merger or acquisition, deciding to switch to Cornerstone Bank is easy.
Rather than sending you pages and pages of instructions that you must figure out on your own, our team will come to your business (or meet with you) to personally oversee the process of switching your accounts to Cornerstone Bank.
To get in contact with our team and learn how we may help you with your banking needs, submit a service inquiry and we will be in touch shortly!