I see alot said about other areas of the Farm but not the bank. Other than firing all the external employees.
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State Farm agents are the problem. They don’t promote the bank or it’s products. Most people outside of State Farm still are not aware State Farm even has a bank. That’s not only a problem with the agents but also with marketing.
You aren’t sure why SF hangs onto the bank? The bank is not SF’s problem. In 2016 State Farm had a realized profit for the sixth year in a row in banking and for the fourth year in a row in mutual funds. The problem is Underwriting losses. Do your homework! SF insurance needs to get with the program. Once driverless cars become a staple less people will need insurance and Underwriting will see even more losses.
The Bank could have been something if SF really innovated and believed in it. Consider the success of Ally Bank marketing its all-online nature. When I was there, Mike Smith was a stick-in-the-mud, anti-technology leader. He and Tipsord never got along, and Tipsord hates the Bank. That might explain the lack of interest and investment. It's too bad, the Bank could have been something. It's far too late now.
The bank is losing customers??? The bank never had real customers. Only SF employees with accounts. The ones they are losing are most likely separated employees!
I am not sure why we hang on to the Bank it’s a costly legal and regulatory compliance nightmare and it’s costing us the shirts off of our backs!
But once again, SF Leadership to unaware to take care of the issues and possibly save some jobs!
Except that's major. The new accounts area and the area that processes mobile deposits were majorly (like 65-75%) external. No body knows how to process the mobile deposits right. And there's rampant errors with new accounts, like just not knowing how to read English. Same thing goes for the maintenance group since people were pulled over to help. Also, they said that collections would get to keep their externals because of turnover, they were all let go on 12-14 with no warning. The result of all of this is the main call center, the one you get when you call the bank, fielding 80-90% more calls then this time last year and they can't handle it. And there's a hiring freeze. The Bank's losing customers because it takes 30 minutes to get someone, who doesn't know what they're doing, to try and help you fix something that was screwed up by someone who doesn't know what they're doing either.