Thoughts in Time

When we started Higher One, we often talked about how were building a better model. We believed that especially for the student demographic, providing convenience and online services would be more appealing than the traditional banking model. I haven’t been in a branch in years, but today had an experience that reinforced my belief that banks just don’t get it.

I’m closing on a mortgage refinancing with a large regional bank tomorrow (the bank shall remain nameless ). In order to get a lower rate, they require that I have a direct debit from a checking account with them. OK, no problem, I’ll just open an account, have the exact amount deposited there from my paycheck each month and will be all set… but first I had to actually open the account with them. Here’s where the fun started. Let’s say I was opening an account through Higher One. Within ~2-3 minutes I can open, and fund a Higher One checking account - and I can do it whenver I want, online in my boxers - even while watching Jack Bauer shoot his way off the rooftop on 24.

Here’s the way it worked in the bank.
1. Find a time to leave work to go to the bank (I went after lunch)
2. Find a parking near the bank (had to go around the block once)
3. Scramble for quarters to feed the meter.
4. Walk in - what do you know - 3 tellers doing nothing at the teller window…..
5. Approach the one that seems to be interested and ask to open a checking account.
6. ” I can take you to someone who can help you with that” (I guess tellers don’t have this power?)
7. I sit and wait in a nice plush chair for a lady in a glass cubicle to finish with another customer (techincally there were two ladies and both so happened to be occupied)
8. After 3-4 minutes, the one lady finishes with a customer and says loudly over the cubicle - “can i help you.”
9. I say yes, go in, say I want to open a basic checking acount. She asks for two forms of ID and takes them to go make copies.
10. “I have to look you up in chex systems” she says. I know what Chex Systems is, but to most consumers it would have sounded as though she was speaking another language.
11. You have to deposit $50 - cash or check she says.
12. I’m used doing everything electronically so I ask - “Can’t a fund it online through an ACH?”
13. Looks at me blankly - “no - check or cash - there’s an ATM right outside.”
14. I go draw $60.
15. She walks me back to a teller. “Can you please give him $10 back and deposit $50″
16. I get a receipt and $10 and I’m all set…

I guess I can’t complain. This is the reason why there’s an opportunity for Higher One to keep growing for years to come. You tell me- if you are a student or not, would you rather go through this - or take 2-5 minutes online whenver you want.

You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.