Improving Customer Relations When Closing an Account: A Must for Banks

**Improving Customer Relations When Closing an Account: A Must for Banks**

Banking is an essential part of our daily lives, from managing salaries to paying bills and handling our finances. However, the sudden closure of a bank account can be a deeply unsettling experience for customers. Not only is it inconvenient, but it can also lead to a disruption in business operations and tarnish a person’s reputation in the community. The lack of explanation or recourse from the banks exacerbates the problem, leaving individuals puzzled and distressed.

**The Customer’s Cluelessness**

Most customers are oblivious to the fact that banks have the authority to terminate their accounts at any given time. When contacted by banks to investigate suspicious account activities, individuals often fail to grasp the seriousness of the matter. They are unaware that the banks have a legal obligation to know their customers and can take swift action if they find anything amiss. Hence, it is essential for banks to remind their customers of this authority to cancel accounts during such investigations. This will help convey the gravity of the situation, making individuals take the bank’s inquiries more seriously.

**Improving Communication Channels**

Banks generally rely on traditional paper mail to request additional information from customers or inform them about account closures. However, this method is not foolproof, especially for those with unreliable mail services or who tend to overlook official communications. Therefore, it is crucial for banks to leverage multiple communication channels such as phone calls, texts, and alerts on banking apps and websites to ensure that customers are promptly and effectively notified about any account-related actions. This proactive approach can mitigate misunderstandings and ensure that customers are well-informed, thereby reducing feelings of surprise and distress.

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**Personalizing Customer Interactions**

Banks are encouraged to humanize their interactions with long-term customers, bank employees, or retirees who have had their accounts closed abruptly. Ignazio Angeloni’s experience serves as an exemplary case, where a distinguished individual faced the perplexing situation of having his account terminated without a justifiable reason. It is essential for banks to pay meticulous attention to the background and standing of such customers to avoid unwarranted account closures that could potentially damage their reputation and financial activities.

**Transparency in Reporting**

Banks are often required to file a Suspicious Activity Report to the federal government when customers trigger certain alerts. However, many customers who have had their accounts closed remain uninformed about the reasons behind this action. There is a need for greater transparency in the communication process, where banks should inform customers of the grounds for closure, especially in cases where no Suspicious Activity Report has been filed. Without this clarity, customers are left bewildered and distressed due to the lack of information regarding the cause of account termination.

**Aligning with Customer Expectations**

In a digitally-driven era, many customers expect banks to handle their interactions with greater sensitivity and understanding. Therefore, it is imperative for banks to establish an empathetic and reassuring approach when communicating about account closures. Implementing concise and transparent procedures that align with customer expectations will play a pivotal role in maintaining a positive image and fostering trust among the customer base.


The sudden closure of bank accounts without adequate explanation or recourse can have far-reaching consequences for individuals and businesses. It is crucial for banks to revamp their customer relations strategies when closing accounts to alleviate the distress and inconvenience experienced by affected customers. By implementing more transparent and empathetic communication practices, leveraging multiple communication channels, and personalizing interactions with customers, banks can significantly improve the customer experience during such challenging circumstances.

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