Robin Roberts: The Reason Behind Banks Asking For ID All The Time

Business Leaders Podcast

Interestingly, many banks receive customer complaints not about their services but their standard procedure of asking for ID all the time. Regulars often see this as annoying and repetitive, which sometimes leads to arguments with bank tellers and staff. Setting the record straight regarding this particular policy with Bob Roark is Robin Roberts, CEO of Pikes Peak National Bank. She explains why confirming one's identification is critical in securing one's money and financial information. Robin emphasizes why this simple action promotes better relationships between you and your bank.

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Robin Roberts: The Reason Behind Banks Asking For ID All The Time

Have you ever wondered why banks sometimes do things that are not quite clear? In this series, I have Robin Roberts. She's the CEO of Pikes Peak National Bank. She's here to demystify why banks want to see your ID again. You go, "Why would they want to see my ID? Don't they know me?" I thought it might be useful to talk about that process from the bank's perspective. Enjoy.

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I got back from my bank. As always, I want to take some funds out and they wanted to see my ID again. I can't tell you how many times they've asked. Pretty much, it annoys me almost every time. Robin, why do they ask? Robin is the CEO of Pikes Peak National Bank. She gets asked this question all the time so we thought we would answer it. Go ahead, Robin. [bctt tweet="Banks are protecting not only your money but also your financial identity, social security number, and all other personal information. " via="no"] I get more customer complaints about the fact that we asked for their ID than any other customer complaint. It boggles my mind. We are protecting your financial information and access to your accounts. For most people, that's either the most important thing to them or the second most important thing to them after their family. There is their money. I always equate it to when someone goes into a liquor store or they go to a restaurant and the bartender cards them, they feel so flattered like, "I must look young. Someone asked me for my ID. He must have thought I was under 21." You know that's not why they asked for the ID. They're flattered when the bartender asked them for their ID. We're protecting not only their money but their financial identity, their social security number, date of birth, all of their personal information. They get irritated when we ask for an ID. Often I get, "Don't you know how long I've been banking here?" "I do know how long you've been banking here but the new teller doesn't." Banks have new tellers all the time. It's an entry-level position in our industry. Usually, good tellers get promoted so then you're going to have a new teller. The new teller doesn't know you and they better be asking for your ID because what if you're going through a divorce and your soon-to-be ex-wife is trying to access your accounts. We need to look at IDs to know who's authorized to have access to this and who isn't. It's not optional, isn't it? [caption id="attachment_5903" align="aligncenter" width="600"] Asking For ID: Banks need to look at IDs to know who's authorized to have access to the account and who isn't.[/caption] It's not optional. If the bank allowed someone to take money out of your account and didn't ask for an ID, I can promise you you’d be complaining to me. It's the opposite side. It's not about us trying to create inconvenience for you. It's not about us not knowing who you are or appreciating your long-term relationship with us. It's us doing our job. We're protecting your financial information, your financial identity and access to your money. Please give us your ID. You could thank the teller for asking because they are doing their job. I’m reframing the question because I think about, "Why did you ask for my ID?" It was because the last person that came in said they were you. He didn't look like you and we gave them all your money. "You didn't ask them for my ID?" You think about the flip side of the coin. People don't understand the why behind the ask. [bctt tweet="Banks don't do a good job of explaining why they do what they do. " via="no"] It's why we're doing these. I appreciate the opportunity. People don't understand it. We don't have great financial education in our country. Also, banks don't do a good job of explaining why they do what they do. When you explain to someone the reason behind it then it makes perfect sense. [caption id="attachment_5904" align="aligncenter" width="600"] Asking For ID: It's not that banks do not know who you are or not appreciating your long-term relationship with them. It’s about protecting your financial information, financial identity, and access to your money.[/caption] At the end of the day, it's back to some of the things we talked about. You want if you can to have a good business relationship with your bank. If you're always a pain at the counter, they're not going to be happy to see you and probably encourage you to go bank somewhere else. It's not conducive to having a good business relationship. Robin, back to demystifying things. When somebody shows up at the bank and say, "I'd love to show you my ID. Would you like another?" Robin, thank you so much. I truly appreciate it. Thank you.

Important links:

• Pikes Peak National Bank

About Robin Roberts

Community Banker with a passion for serving the banking and lending needs of small business owners. Particularly effective with businesses with gross revenues of less than $2 million annually. Can assist investors in commercial and residential real estate and businesses looking for commercial real estate. Banking executive with broad experience with management, recruitment, and the legal aspects of the business. Volunteer counselor and instructor at the Colorado Springs Small Business Development Center, helping new and existing business owners with funding needs, explaining the SBA and the small business lending process, business plan review and financial projection development, and commercial banking needs.