In-Depth BMO Bank Review 2023: Pros, Cons, and Viable Alternatives

When it comes to selecting a bank, it’s critical to understand what each offers, its advantages and pitfalls, and how it compares to its peers. BMO Bank, established in 1817, is one of the longest-serving banks in Canada, originally known as the Bank of Montreal. As a pioneering financial institution, it has expanded its services across North America and is a known entity in the Canadian banking landscape.

Navigating the world of finance with a trusted banking partner means looking into what makes a bank special and what might be seen as a drawback. This review delves deep into BMO Bank’s services, fees, customer experience, and compares it with other financial institutions to help you make an educated decision about your banking needs. We’ll explore not only the essential services and products BMO offers but also discuss practical steps on how customers can switch banks, should they choose to.

BMO Bank stands out due to its historical roots and large customer base, but like any large institution, its massive scale can lead to a variety of customer experiences. This in-depth review aims to unpack BMO Bank’s complete profile in 2023, focusing on both the pros and cons, while also providing practical alternatives for those considering their banking options.

The goal is to provide a comprehensive guide to BMO Bank’s offerings to help current customers better utilize their services and potential customers make informed decisions about whether BMO is the right banking choice for their financial needs.

Introduction to BMO Bank – Overview and history

BMO Bank, known initially as Bank of Montreal, held the distinction of being Canada’s first bank when it was founded in 1817. It was established with a mandate to facilitate the growing trade in Montreal’s highly lucrative fur market. Over the years, BMO has played a foundational role in the development of the Canadian economy, quickly establishing branches across the country and even expanding into the United States with BMO Harris Bank.

Throughout its history, BMO has been at the forefront of introducing new banking technologies and services, including the first ATM machines in Canada in the 1970s. Today, it serves over 12 million customers worldwide and operates more than 900 branches. The bank continues to innovate, with a strong emphasis on digital banking solutions and sustainability, aligning itself with modern eco-friendly policies and practices.

Despite its age, BMO has consistently adapted to the needs of modern consumers and businesses. Its long history has been marked by a series of strategic mergers and acquisitions, expanding its service range and reinforcing its market position as one of the leading banks in North America.

Pros of BMO Bank – What makes it stand out?

BMO Bank has several distinct advantages that make it an attractive choice for many customers. Its large scale ensures that it can offer a wide variety of products and services, including personal and commercial banking, wealth management, and investment banking services. Its extensive presence across Canada, with branches in nearly every major city and many rural areas, makes banking accessible for a vast majority of Canadians.

• Wide range of services: From basic checking and savings accounts to sophisticated investment advice and wealth management, BMO offers a comprehensive service lineup.
• Innovative banking technology: BMO has been a leader in introducing digital banking solutions, such as mobile check deposits and an advanced online banking platform, which makes managing finances convenient for users.
• Strong customer loyalty programs: BMO Rewards is one of the most robust loyalty programs in the Canadian banking sector, offering customers points that can be redeemed for travel, merchandise, or financial services.

Additionally, BMO’s financial stability and strong regulatory compliance should give customers peace of mind, knowing their deposits are safe and their investments are handled with utmost integrity.

Cons of BMO Bank – Potential drawbacks

Despite its many strengths, there are several areas where BMO Bank could improve. Some customers report dissatisfaction with aspects of their service, which could be critical for potential customers to understand before making a banking choice.

• Customer service issues: Some customers have expressed frustration with wait times and the level of service received at branches or on customer support calls.
• Higher fees: Compared to some regional banks or online-only financial institutions, BMO’s banking fees, including account maintenance and transaction fees, can be on the higher side.
• Less competitive interest rates: For some of its financial products, such as savings accounts and fixed deposits, the interest rates offered by BMO are not always competitive with other top banks or high-interest online banks.

These drawbacks highlight some challenges customers might face, suggesting areas where BMO could potentially enhance its services and policies to better meet customer expectations.

Key banking services offered by BMO – Accounts, Loans, and Mortgages

BMO offers a full spectrum of banking products, which are categorized broadly into accounts, loans, and mortgages. Each category includes several products tailored to meet different financial needs and goals.

• Accounts: BMO provides a variety of checking, savings, and business accounts. For everyday banking, their Premium Rate Savings account and Performance Checking offer features like unlimited transactions and the potential for earning interest.
• Loans: Whether customers are looking for personal loans, student loans, or auto loans, BMO has options available. They provide competitive rates and terms, designed to offer flexibility and support borrowers’ financial stability.
• Mortgages: BMO offers fixed and variable rate mortgages, along with special options for first-time home buyers under the BMO Smart Fixed Mortgage. They provide extensive online resources and tools, such as mortgage calculators and pre-approval applications, to assist clients in making an informed decision.

These core products ensure that regardless of where you might be in your financial journey—from just starting out, managing day-to-day needs, or making significant life purchases like a home—BMO has a banking solution that can be tailored to your needs.

Fees and rates at BMO Bank – An analysis

Understanding the fee structure and rates of a bank is crucial for customers looking to minimize their banking costs, and BMO is no exception. Here’s a closer look at some common fees and rates:

While BMO’s fees can be higher than some competitors, they are generally justified by the breadth and quality of services provided. Customers who maintain a higher balance or have multiple accounts and services with BMO might be eligible for fee reductions or waivers, adding value to their banking experience.

Usability and customer experience – Online platforms and mobile apps

BMO Bank has invested heavily in its digital platforms to ensure a seamless user experience. Their online banking interface is user-friendly, allowing customers to easily manage their accounts, transfer money, pay bills, and apply for products. The mobile app, available on both iOS and Android, is highly rated by users and provides features like mobile check deposit and customizable alerts.

• Ease of Use: Both the website and mobile app offer intuitive navigation, with all banking features readily accessible.
• Security Features: BMO uses advanced security protocols to protect user information and transactions, including two-factor authentication and biometric logins.
• Accessibility: The online tools are designed to be fully accessible, with options for visual, hearing, and motor impairments, ensuring all customers can manage their finances independently.

These features exemplify BMO’s commitment to providing a top-notch digital banking experience, making everyday banking convenient for customers.

Customer service reputation – Insights from real customer reviews

Feedback from existing customers can provide valuable insights into the real-life experiences with BMO’s customer service. While many appreciate the comprehensive services, some common themes appear in customer reviews:

• Positive Reviews: Many customers praise BMO for its friendly staff and the professional management of their accounts. Long-term customers often feel valued and well-served.
• Negative Reviews: On the downside, complaints usually focus on long wait times both in branches and on customer support lines, and some inconsistency in service quality.
• Mixed Reviews: Some reviews are mixed, highlighting specific instances where BMO resolved issues efficiently after initial problems, suggesting variability in service experiences.

Potential customers should consider these mixed reviews and assess what weight they give to customer service in their choice of bank.

Comparison with major competitors – How does BMO stack up?

Comparing BMO to its primary competitors, such as TD Canada Trust, Royal Bank of Canada (RBC), and CIBC, helps highlight its position within the market:

BMO often stands out for its innovation in financial services and commitment to customer rewards programs. TD and RBC offer similarly wide ranges of products, but BMO’s investment in technology and sustainability initiatives might appeal more to environmentally conscious consumers. However, in areas such as customer service and interest rates, RBC and TD might occasionally have the upper hand, based on customer feedback and independent ratings.

The choice between these banks will often come down to specific needs and preferences, such as the convenience of branch locations or the specifics of financial products and services.

Viable alternatives to BMO Bank – Other banks and financial institutions

For those considering alternatives to BMO, there are several other banks and financial institutions worth considering:

• TD Canada Trust: Known for excellent customer service and a vast array of financial products.
• Scotiabank: Appeals to customers with international banking needs.
• Online banks like Tangerine or Simplii Financial: Offer competitive rates and lower fees for those comfortable with digital-only platforms.

These alternatives each have their unique strengths and could be a better fit depending on individual banking needs and priorities.

Conclusion – Should you choose BMO Bank or look elsewhere?

Deciding whether BMO is the right bank for you involves weighing its comprehensive product offerings, technological innovations, and sustainability initiatives against the drawbacks of potentially higher fees and varying customer service experiences. For those who value a wide range of services and digital banking solutions, BMO is a strong candidate. However, those sensitive to fees or in need of consistently high-rated customer service might consider other options.

In sum, BMO offers a dependable and broad array of banking services suitable for a wide demographic, from students to senior citizens and businesses. The right choice will depend highly on individual circumstances and priorities in banking relationships.

How to switch banks – A brief guide for those considering a change

For customers considering a switch from BMO or any other bank, the process involves several straightforward steps:

1. Research and Compare Options: Evaluate what different banks offer in terms of fees, services, and customer satisfaction.
2. Open a New Bank Account: Begin by opening a new account with your chosen bank. Ensure you have all necessary documents handy, such as identification and proof of address.
3. Transfer Automatic Payments and Deposits: Redirect any direct deposits and automatic payments to your new account.
4. Close Your Old Account: Once all deposits and payments are transferred, and all checks have cleared, you can close your old account.

Switching banks is a significant decision and can seem daunting, but these steps can make the transition smoother and ensure you’re set up with a bank that better fits your needs.

Recap

To summarize the key points of this review:

• BMO Bank is one of Canada’s oldest and largest banks, offering a wide range of banking services including accounts, loans, and mortgages.
• It stands out for its broad range of services, innovative banking technology, and strong customer loyalty programs.
• However, it also has drawbacks like higher fees and a customer service experience that varies widely among customers.
• While BMO is competitive, alternatives such as TD Canada Trust or online banks like Tangerine might appeal more depending on individual needs.

FAQ

1. What makes BMO Bank stand out among other Canadian banks?
   BMO boasts a broad range of services and a strong focus on innovative banking technology and sustainability.
2. How do BMO’s fees compare to other major Canadian banks?
   BMO’s fees tend to be on the higher side, though they offer comprehensive services that might justify the costs for many customers.
3. Can I open a BMO bank account online?
   Yes, BMO allows you to open most types of bank accounts online through their website or mobile app.
4. What are some direct competitors to BMO in Canada?
   Some of BMO’s main competitors include TD Canada Trust, RBC, and CIBC.
5. Does BMO offer any programs for students?
   Yes, BMO offers student banking services, including no-fee chequing accounts and student credit cards.
6. What should I consider when thinking about switching from BMO?
   Consider factors such as differences in fees, the range of services, and customer service ratings of other banks.
7. How does BMO support sustainable banking?
   BMO has implemented several sustainability initiatives, including eco-friendly branch designs and supporting green energy projects.
8. Where can I download the BMO mobile banking app?
   The BMO mobile app can be downloaded from the Google Play Store or Apple App Store.

References

1. BMO Bank Official Website. [https://www.bmo.com/main/personal]
2. Canadian Bank Ratings & Overview – Consumer Reports.
3. Financial Consumer Agency of Canada – Banking Basics. [https://itools-ioutils.fcac-acfc.gc.ca/RDCV-BRVC/sear-recher.aspx?lang=en]