Interruptions to Banking Processes During Mergers

If you’ve ever experienced disruptions in your bank’s services—like online banking being unavailable, branches temporarily closing, or delays in customer service—your bank may have been going through a merger.

When two banks merge, it can temporarily affect the banking services we rely on. But why does this happen? Let’s look at some simple reasons behind these interruptions and how banks work to keep things running as smoothly as possible.

1. Combining Technology Systems

One major reason for service interruptions during a merger is the need to combine two different technology systems. Each bank has its own systems for managing accounts, online banking, mobile apps, and ATMs.

During a merger, the information in these systems must be combined into one of the existing systems or be replaced with a new, unified system. This process can take time and may require a temporary disruption of services.

Example: If your bank is merging with another and updating its online banking system, there might be a scheduled period when online banking is unavailable. This is usually done at night or over a weekend to minimize customer impact.

2. Updating Customer Information

When two banks merge, they need to move account details, personal information, transaction history, and even preferences, like email notifications or statements to the new system. Ensuring this transfer is accurate takes time.  Employees work behind the scenes to validate data to verify the information transferred properly. 

Example: If you’re trying to check your balance or make a transfer during the data update, there could be a delay or slower response times.

3. Coordinating Account Changes

A merger can also bring changes to account numbers and product details. To avoid confusion, banks will provide a conversion guide outlining the changes and temporary delay in services that may impact a customer. 

If there are any changes to account numbers, payment schedules, or products and services, these are carefully communicated in the conversion guide and bank website to outline any potential disruptions that may impact a customer.

Example: After a merger, a bank might update all customers’ account numbers. During this change, you may not be able to make transactions for a short period.

4. Upgrading Branches and ATMs

Banks sometimes need to upgrade or rebrand branches and ATMs as part of the merger. This can mean changing signage, installing new software, or even remodeling. To keep things consistent, banks may temporarily close branches or ATMs while they complete these updates.

Example: During a merger, your local ATM might be unavailable while it’s updated with new branding and software that connects it to the merged bank.

5. Training Employees on New Systems

When two banks merge, employees need time to learn new systems and processes. Customer service teams, tellers, and even loan officers may need to be trained on new ways of handling accounts, accessing information, or assisting customers. While training is happening, response times might be slower, especially if employees are learning the new system or waiting for help from a team member.

Example: If you call customer service after a merger, you might experience a longer wait time as representatives get up to speed on the new system.

6. Testing for Security and Stability

Banks need to make sure the new combined system is secure and stable. Before they launch it fully, they test everything to prevent errors or security issues. This might mean certain features, like online banking, are only partly available during the testing period. While this can be a temporary inconvenience, it’s an important step to make sure your information stays safe.

Example: If your bank’s mobile app has reduced functionality or slower load times, it’s likely because they’re running security tests to protect your information.

7. Communicating Changes to Customers

Clear communication with customers is crucial during a merger to ensure everyone is informed. Banks need to notify customers about potential interruptions, update them on new account terms, and answer questions. To manage this communication smoothly, they may limit some services so they can focus on making sure customers are informed and supported.

Example: You might receive emails, letters, or in-app notifications from your bank explaining temporary changes in service, new branch hours, or important updates on your account.

How Banks Minimize Interruptions

Banks try to plan carefully to minimize the impact of these disruptions. Here’s how they often handle it:

• Weekend Scheduling: Most major updates or system changes are scheduled during nights or weekends, so fewer customers are impacted.
• Clear Communication: Banks send communications by mail in advance to let customers know about any potential disruptions, as well as posting this information on their website and social media platforms.
• Temporary Solutions: Some banks may offer temporary alternatives while online banking services experience interruptions. If your bank is going through a merger, talk to a representative about your banking options during this time.

While interruptions during a bank merger can be frustrating, they’re temporary and are needed to ensure the new merged bank is equipped to serve you. By merging their systems, data, and services, the new bank can provide a more unified and often more advanced experience. So next time your bank goes through a merger, you’ll know what to expect and understand why a few short delays are sometimes necessary to make the big changes happen smoothly.