Essay on Customer Loyalty For A Local Business

1612 Words Dec 31st, 2015 null Page
FirstBank is fortunate because the top four banks in its market are not local community banks. This gives the Bank an advantage in local relationship-based banking and customer loyalty for being a local business. The same customer base also relies on a local bank to provide quality products and services like the big national banks. FirstBank stays on the leading edge of technology which helps portray a big bank environment and provides all the products and services offered by the big banks. To remain competitive in banking in the foreseeable future the bank will have to continue to invest heavily in Technology. The younger generation is technology driven and expects the bank to come to them versus them visiting the bank. The major up and coming competitive concern to the Bank is crowdfunding. Crowdfunding is the practice of funding a project or venture by raising numerous small sums of money from a large number of people, normally via the Internet. Since crowdfunding is an unregulated industry, many consumers are turning to this avenue for quick funding. However, the Securities and Exchange Commission (SEC) has passed a final rule under the Securities Act of 1933 and the Securities Exchange Act of 1934 called the Jumpstart Our Business Startups Act which regulates this line of business. The act goes into effect on May 16, 2016. While it is uncertain what competitive impact the act will have, it is a step in the right direction for the banking industry.

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