Banking Business End of 2009.
Banking Business End Of Year
Banking Business year end rush. Last minute Banking. People rushing in to get their shiny new loonies and toonies for the kids. Fresh and crisp bank-notes are being ordered and handed out as requested by customers at the tellers. ATMs running out of cash and shutting down. Bankers going nuts to fill their end of year portfolio on a high (bank) note. Holiday goodies are in every bank branch to entice customers (they still don’t get it – treating customers as retail walk ins is marketing folly).
Is the Banking Scrooge Present for You?
I just wonder how many customers have felt slighted this year, the year of mass econimic turmoil and dreaded loss in Canada have remained faithful to their bank. After-all, many mortgagees have taken flight to other cheaper and better deal makers who would treat them as “valued clients” and not just “retail customers”.
It’s time for the Holidays…Christmas to many, Hanukah to some, time to kick back for others, get completely whacked with friends and for kids this is simply a time to get parents feel guilty about the type of presents the big red and white guy is supposed to bring. Unfortunately for many, this is the year for cutbacks and the double digit bankruptcy rise makes no bones about that.
In fact, I know of many who would dearly do with food bank canned food stuffs and a warm place to stay. But what about their kids? I was told by some that there are also social welfare programs getting caught in the extra demands of time and energy. I’ll bet that this year, emergency shelters and motels will run out of much needed space. Expect the government budget for shelters to rise steeply in 2010 to make up for shortfalls this year.
The news on bank bonuses in Canada appear to be quite muted compared to the huge outcry south of the border – especially those involved with Wall Street. Does this assuage the consumer? They shouldn’t be so complacent. Yes, it’s great having powerful banks but do consumers realize they are likely paying far too much on service fees? Service fees should include all the ATMs, chequing, cash transfers, NSF, search, application, credit cards, investment management, etc. Add them up and you will be appalled. Oh yes, you know those bank workers? They are still being downsized too – though only occassionally (you could call it a strategic reduction in employee requirements as system efficiencies advance).
Real Estate and Mortgages Stay Big
Real estate mortgages has been a powerful driver all year and appear to power the Canadian economic engines well into 2010. Investors spooked by the dismal equities markets have switched their thinking into something more tangible- Real Estate. So, you’re not an investor, but hey, how about helping your grown kids with some downpayment for their first home? Grandparents have bought houses with their retirement income and rented them out. Others have formed investment groups and invested in promising properties in great locations.
Very low interest rates and easier to get mortgages have also helped drive the property market skywards. In the best locations in the GTA, like Markham, Ontario for example, most decent properties are snapped up within hours of their supposed listing…Many good homes are simply sold by eager buyers within days of getting on the MLS. But there are still those overpriced ones that sit for months without a nibble. And a few simply will not sell considering their poor condition vs price.
That is not to say all the properties in the GTA are selling like hotcakes. The real estate wisdom of location, location, location plays a huge role here. Sure, the prices have gone up across the board, but it’s hot in only the Best locations. The others will have a longer wait ahead of them.
It’s been a long time since I posted anything about banking on this site. My apologies to all you good readers. And thank you all for reading and visiting. Please come back for even better banking ideas in 2010.
Happy Holidays and a Prosperous New Year in 2010.
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