Huntington Bank Review and Analysis 2014 | Pros and Cons
Although Huntington National Bank provides similar products and services as most other banks, it has somehow managed to successfully carve out a niche in Ohio, Michigan, Indiana, Pennsylvania, Kentucky and West Virginia.
Founded in 1866, as a subsidiary of Huntington Bancshares Inc., Huntington Bank has a tight network of over 700 branches and 1,500 automated banking machines (ATMs).
The bank’s parent company, Huntington Bancshares, is a $57 billion regional bank holding company headquartered in Columbus, Ohio. Its stock is traded on the NASDAQ stock exchange (Stock: HBAN).
According to the Federal Reserve System’s National Information Center, Huntington National Bank is the 37th largest bank holding company in the Unites States.[related1][/related1]
Below are 4 pros and 4 cons you should be aware of as a future or current Huntington Bank customer.
4 Benefits of Banking with Huntington (Bank Review and Analysis)
- High customer satisfaction (polls / surveys)
- Wide range of products and services
- 24-Hour Grace®
- Quick automotive dealer partnership
In a recent U.S. Small Business Banking Satisfaction study, Huntington ranked highest in Small Business Customer Satisfaction.
In another key review conducted by J.D. Power and Associates, Huntington customers cited the high level of customer service provided as a key reason for banking with the firm.
Customers were especially impressed by how they were consistently greeted by name and thanked for their business.
Also, through its strategic partnership with automotive dealers, the bank has been able to create an easy and efficient process for quick automotive loan processing.
Another benefit of banking with Huntington is the 24-Hour Grace® service, which gives customers with overdrawn checking accounts the opportunity to clear the overdraft within 24 hours, without incurring any overdraft fees on their account.
In an environment where banks are typically eager to charge overdraft fees, it is refreshing to know that one bank has the interests of its customers at heart.
Huntington provides a wide range of products and services including checking, savings, CDs, mobile banking, credit cards, loans, mortgages, insurance, investments, wealth services, business planning and financial planning.
Disadvantages of the Huntington Experience
Below are some top concerns that have been posted online or expressed by reviewers / customers of Huntington Bank.
- Disgruntled employees
- Careless growth strategy
- Seemingly unwise branch expansion
- Unresponsive to mobile banking needs of customers
Disgruntled employees can, and do have a negative impact on overall service in any industry.
Although Huntington provides a very impressive benefits package for its staff, some employees have complained about difficulties in maintaining a healthy work-life balance.
Huntington employees have complained about long working hours and unrealistic sales goals. In addition, some have voiced negative opinions that opportunities for promotions are almost non-existent.
Some reviewers have voiced concern that the bank is engaged in a careless growth strategy, including overpaying for acquisitions.
In 2006, Huntington acquired Sky Financial at a 25% premium. Fast forward a few years, and Huntington’s parent company is again paying a premium to acquire Camco Financial Corporation, as announced in October 2013.
While most major financial institutions are implementing strategies for leaner and more efficient physical branch network, Huntington is going against the tide and expanding while everyone else is downsizing.
Over the past year, Huntington’s branch network has grown by 6.6%, adding 45 locations to its network.
While expansion can be great if executed successfully, acquiring other companies and paying a premium can sometimes lead to a reduction in shareholder value, at least in the short time.[related1][/related1]
Huntington Bank – The Transformation
While observers and critics watch from the sidelines, it is obvious that Huntington has a playbook in place.
Ever since the 2008 financial crisis, Huntington has been executing a restructuring and transformation of its business and operating model.
It appears that the transformation is paying off on some levels, at least for those shareholders who like to buy, hold and prosper.
Huntington Bank’s stock price has surged over 90% in the last two years.
With above average growth in its share prices, consistent dividend payments at least three times per year for the past decade, and a first place ranking in customer satisfaction surveys, Huntington appears to be proving its critics wrong.
For now, the bank seems to have it all figured out.[related1][/related1]