How mergers of banks affect employees and customers?
Answers
Banks see opportunities of mergers and acquisitions as a chance to expand their reach or scale up operations quicker.
The effect of mergers on employees can be both positive as well as negative. Following mergers the workforce is generally reduced to eliminate redundancies. However, some employees can emerge with more secure positions.Employee confidence tends to decrease due to mergers as they have a negative impact on how employees view their employers.
Employees often struggle to fit into a new office culture when companies merge. These often lead to one company and its executive team taking the lead in managing the new business whereas the other companies team gets sidelined.
Affect of mergers on customers can be either positive or negative. The positive impact can be enhancement of quality of product/service the customer receives. The costs of services to consumers might reduce since merger reduces cost of production, hence, price goes down.
The negative impact can be increase in prices since there are fewer competitors in the market now. The customer service can be affected In some cases, a newly merged company may experience problems at the customer service level . Some customers might not be comfortable with the new arrangement.