USAA Bank: A Top Rated Bank in the USA for Financial Products and Services

Many banks operate in the USA economy, and USAA happens to be one of them. The USAA bank is one of the top-rated banks in the United States for its quality financial products and services in the insurance and banking sector (Beath, & Ross, 2016). The bank has one of the best financial practices in the drafting of securities and loan documents. Additionally, the USAA has been uploaded numerously for its effectiveness in completing financial transactions with clients. USAA bank has also been on the forefront in advising its members about typical methods of financing commercial and business transactions. This paper discusses some of the best financial practices of USAA bank such as the creation of a culture of customer experience, its mode of operation, Issuing of several casualties and property insurance, Loan provision, and offering of investment opportunities.

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One of the best financial practices of USAA bank involves its culture of customer care experience. The bank has managed to create a favourable environment that addresses the issues of its customers in an unbiased manner (Wirtz, & Zeithaml, 2018). USAA has managed to achieve that through the creation of a culture of customer experience across the entire organization. That has enabled the firm to be at the forefront of matters related to its customers' thinking and perspectives. The bank usually animates its workforce at all rankings to discover and present any ideas that can help enhance customer service and experience. Since some of the bank's employees are among its customers, the bank utilizes on that to get useful information on how to improve clients' experiences. "You have to understand, every staff here is a client, a member, of the USAA bank," said Deputy President for Emerging Technology at USAA Labs, HYPERLINK "https://www.linkedin.com/in/dmjones" \t "_blank" Darrius Jones (Beath, & Ross, 2016).

Employees of the USAA bank usually acquire their membership together with their preliminary onboard documents. That is of importance as it enables the bank to keep its employee in persistent touch with how it conducts business (Beath, & Ross, 2016). Additionally, the bank receives plenty of ideas from its staff for which some have collected United States patents. Among such innovations and ideas presented by its employee is the Shazam for vehicles (Egan et al., 2018). The technology uses amplified realism software that can enable clients to hold their phones up to the car of their preference and access data on year, make, model, price, availability, etc. The invention is associated with USAA's history as a provider of insurance services for automobiles. Additionally, the system can suggest the bank's finance options if a client wants to get the money to purchase the selected vehicle or acquire insurance package. Such innovations are among the financial practices employed by USAA bank, which has enabled a more comfortable and effective way of buying vehicles. Additionally, the innovation can allow its customers to access information concerning any type of car without necessarily going to a vehicle dealer.

Another financial practice of the bank that makes it ranked as one of the best in the United States is its mode of operation. USAA means United Automobile Association, and as the name suggests, it is not an official-type of a bank. It was initially developed in 1992 by an association of army generals so that they could ensure their cars (Beath, & Ross, 2016). Since that time, the bank has grown in terms of population served and type of services offered. USAA was initially preserved for active-duty military officers, but currently, its functions are also available to any individual that served nobly in the United State Military Force. Children and spouses of members are also allowed to bank with USSA. Despite offering banking services, the bank also issues insurance policies to its members. The bank mode of practice and a history of serving a relatively conventional group of military individuals has enabled it to overcome several financial crises in the previous decades. When most banks were on the verge of collapsing during financial predicament, the bank's net income increased from 14.6 billion in 2008 to 19.3 billion in the year 2011 (Cleveland, 2016).

Issuing of a wide variety of casualty and property insurance cover is one of the financial practices employed by the USAA bank. That has enabled the firm to maintain a broad customer base, as it can ensure risks that are not covered by other insurance companies (Tucker & Billman, 2018). Initially, the bank used only to insure military personnel, but that has changed over the recent decades. The bank adopted a new financial practice that so it starts offering insurance covers to the general public. Currently, the USAA bank is amongst well managed, and most respected insures, with workers in the USA and U.K.

In the field of property and auto, USAA issues insurance for automobiles, homeowners, condominium, renters, flood, umbrella, dwelling property, and valuable individual assets. In the category of member-owned ventures, the bank offers insurance covers for commercial builder risks, professional liability, commercial umbrella, equipment's and tractors, workers compensation, ranch and farm, etc. (Tucker, & Billman, 2018). Additionally, the bank has an insurance policy for recreational products such as aviation, motorcycle, motor home, and personal aircraft. Other additional insurance covers provided by USAA include speciality property, flood/wind, and speciality auto. USAA issues a wide variety of insurance policies on property and casualty as one of its financial practices that enables it to enjoy a broad customer foundation.

One of the best financial practices of the USAA bank entails Loans. The bank offers a wide variety of loans at reasonable interest rates to its members. Personal loans at USAA are quickly approved, and lending terms vary from 12 to 85 months (Beath, & Ross, 2016). The banks offer personal loans with an annual interest rate that ranges from 7.25% to 17.66% (Beath, & Ross, 2016). Additionally, the bank offers auto loans that can enable its clients' to finance their used or new vehicle within competitive APRs. However, precise lending terms depends on the credit applied by customers. The bank also allows its customers to refinance their existing cars to a maximum period of 84 months (Beath & Ross, 2016). Moreover, USAA issue boat and leisure automobile loans to its client so that they can utilize their leisure time in panache. Terms for such leisure motor loans last to a maximum of 180 months. The bank also gives home mortgage loans to its members at a fixed interest rate of as low as 5% (Beath, & Ross, 2016). The company has developed a standard mortgage package for both its nonmilitary and military members.

USAA loans have several advantages over loans offered by other financial institution in the USA. Individuals that register for auto-play through a USAA checking account can enjoy a discount rate of up to 0.25% for most of its loan categories (Langley et al., 2020). Furthermore, USAA loans don't have extra fees such as application, or prepayment charges. The bank also has competitive and low APRs for most of the loans it offers. USAA bank guarantees its customer's debt protection; individuals can remit a certain fee to shield themselves from unpredicted financial challenges. Ultimately, the bank gives loans to its clients regardless of their previous credit scores.

USAA Bank also offers investment opportunities as part of its financial strategies and practices aimed at securing the future of its members. USAA Bank is an organization founded on military virtues of loyalty, service, integrity and honesty and that has built the trust of its members on investing in the bank. The bank gives financial counsel and a varied sort of investment services and products to cater to the needs of its members at each stage of life. The bank's consistency in investment achievements and outstanding height of customer service has seen it earn the uppermost rankings from research groups and independent organizations. The bank's investment practices have been made possible due to the disciplined method of managing and overseeing money that originates from military virtues and values. Additionally, the bank believes that markets are usually ineffective, and due to that, its energetic managers tend to focus on global risk and variation management. Furthermore, as a way of evaluating its investments, USAA bank usually measures its achievement annually and not monthly. The bank also tends to stick to its disciplined portfolio and research building process even if it means deviating from the masses.

USAA bank has made it affordable and easy for any member or customer willing to invest within the bank. The bank provides investment opportunities at sensible entry positions with a low initial investment. Moreover, USAA bank offers professional management of members' portfolio; where such members are required to make a preliminary investment of $25,000 (Swain, 2016). As much as USAA bank is still committed to the military society, its investment services and products are also accessible to ordinary citizens.

USAA managed portfolios can enhance simplification of investments, as assets are retained in a unit account with a separate statement for tax filing and reporting. Additionally, it promotes professional management by allowing professional cash managers to oversee investments and actively organize portfolios as per the USAA Investment philosophies and strategies. Through the USAA managed portfolios, investors can get personalized services from a committed team of investment experts on the company's online platforms or through a phone conversation. Additionally, USAA managed portfolios advocates for customization where investment recommendations are centred on the individual investors and can be varied to cater for the investors' varying demands throughout their lives.

Ultimately, USAA bank provides trust services as one of its investment practices and strategies. The bank issues tax-sensitive stratagems in additional to trusteeship for benevolent gifting and giving, bill payment, income distribution and tariff reporting. Moreover, USAA involves a team of qualified financial, investors, planners, insurance advisors, banking experts, and Trust Services mavens to coordinate with estate planning counsels in determining trust of members as per their wishes. At USAA bank, proficient portfolio administration is made to meet the risk acceptance levels and investment objectives of its members.

The USAA operates as one of the top-rated financial institutions in the USA, and it offers both insurance and banking services. The bank's best business practices and strategies revolve around creation of a culture of customer experience, its mode of operation, offering of a diverse casualty and property insurance, Loan provision, and provision of investment opportunities. One of the USAA bank best financial practices involves issuing of loans to its customers, regardless of their previous credit score. Ultimately, USAA bank offers professional management of members' portfolio; as one of its financial practices in investment.

References

Beath, C. M., & Ross, J. W. (2016). USAA: Defining a Digital Experience (No. 410). MIT Sloan CISR Working Paper.Cleveland, C. E. (2016). A Study on How Mobile Banking Has Affected the Banking Industry: Has Mobile Banking Improved Bank Performance?.Egan, M. L., Matvos, G., & Seru, A. (2018). Arbitration with uninformed consumers (No. w25150). National Bureau of Economic Research.Langley, G. R., Lindley, J. W., Griffin Jr, D. H., Garretson, E., Barth, R. R., Duran, F....