If managing your finances feels overwhelming but hiring a financial advisor is out of reach, you may have more options than you think. Many banks now offer personal financial services that can provide a convenient alternative for those seeking guidance without the high costs.
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Some banks offer a variety of personal financial services similar to what you might find from independent financial advisors or insurance brokers, without the additional fees. But is it worth consolidating your financial needs under one banking roof?
According to Brian Pillmore, founder of VisBanking, there are several key reasons why choosing a bank with personal financial services could be beneficial, but also some potential pitfalls to watch for.
One of the most compelling reasons to choose a bank that offers personal financial services is convenience.
“Reducing the number of providers you have is good,” Palmore said. “It’s a question of consolidation versus disintegration. Do you want one less app on your phone, one less website to go to and one less login to manage?”
For many people, having their mortgage, bill pay and insurance services handled through the same bank simplifies everything and makes it easier to pay bills on time and save money.
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Some banks even go beyond traditional financial offerings and provide services that consumers may not even realize are available, Pillmore explained.
“There’s a regional bank in Tulsa, Oklahoma, that’s delivering travel agent services,” Pillmore said. “They send an email to their account holders saying, ‘Hey, if you have over $10,000 in deposits, you get these special travel offers.’”
Additional services of this kind might help you choose between banks, as well.
Another great reason to look for a bank with these services is if you can’t afford an independent financial advisor.
“I think that reason of not being able to afford [a financial advisor] is probably where most Americans sit,” Pillmore said. “But they have to be wary of becoming the product.”
That is, consumers should be aware of the bank’s motivation. Unlike fiduciary financial advisors, who are legally obligated to put a client’s best interests first, bank representatives may be incentivized to promote specific products that generate revenue for the institution.
