With only one physical branch located at the bank's headquarters in San Antonio, Texas you and I might not see USAA as a threat to the standard brick and mortar banks such as Commerce Bank (now known as TD Bank), Bank of America, and the thousands of others we hear about or pass on the street wherever we go.
Well, we're wrong.
In an article titled, "Some See Threat to Banks in New Criteria at USAA," Thad Peterson, the vice president of strategy and solutions for financial services at the St. Louis market research firm Maritz Inc., said that because USAA has only one banking branch, it does remote banking and customer service, largely through its call centers, "better than everybody else."
USAA, a bank that offers membership only to those who have served in the military and their immediate families has decided to open membership to those extended families, widows and others which has created the opportunity for capturing greater market share in the financial services industry.
The spokeswoman for USAA, Robie Cline stated USAA Federal is so small it is "not on the radar screen" of major banking companies. However, Peterson disagreed and stated that "They've never really had a branch banking operation, and banks should view them as a serious player regardless of geography."
The noteworthy part of this article is that the Internet has changed competition and business so much that even small banks like USAA whom offer incredible online and over-the-phone services and support now have the ability to compete with the big guys. It seems that its no longer about how many branches, employees, or accounts a bank has. But rather about how technologically advanced they are and how they can use it to their advantage and providing financial services unique to the industry. People go where the services offered and customer service are the best. The biggest name is no longer enough.
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Kate Berry Some See Threat To Banks in New Criteria at USAA. American Banker [serial online]. August 12, 2008:10. Available from: ProQuest Information and Learning, Ann Arbor, Mi. Accessed November 11, 2008, Document ID: 1534091771.
1 comment:
I especially agree with your conclusion. I have never heard anything bad about USAA. USAA is capitalizing on the unique services it provides its consumers. The company's reputation is growing from the positive feedback of its consumers. In addition to providing a tremendous amount of services, the customer service and account features are incredible. The company really takes care of soldiers and their families. USAA customers don't have to worry about identity theft or credit card fraud. In addition, the rates it provides are unbeatable. Can you imagen if USAA was open to everyone? They would take over a large portion of the market. I noticed that they are expanding their marketshare. I have a friend who is living with her enlisted boyfriend, and she, too, is eligible USAA car insurance coverage by association. This is something new. Coverage use to be limited to military members and their immediate family. The advances in technology have expanded our options and allowed individuals the ability to abandon brick and morter establishments.
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