About Time: Banks Make Disclosures Understandable
September 12, 2012 1 Comment
Bank of America recently joined other banks such as Chase and Citibank in adopting the simplified disclosures advocated by Pew’s Safe Checking in the Electronic Age Project. The project recommended a single page disclosure, but Bank of America, like many other banks, has created a two-page version of the disclosure. Here’s the first page from Bank of America:
My take: Big banks take a lot of heat in my blog for their poor customer experience, as they often fall near the bottom of the Temkin Experience Ratings. But I want to applaud these banks for doing the right thing, making it easier for customers to understand the details of their products. It’s great to see these large banks let go of approaches that either try to hide potentially disadvantageous terms or succumb to requirements for legalese from overly conservative legal departments.
This move is not only good for consumers, but it can be part of an overall change that will be very good for those banks as well. If they continue to make inroads into other areas of customer confusion and struggles, banks are likely to be rewarded with more loyalty, as you can see in a graphic from a recent post, Customer Experience Isn’t Enough in Banking.