KeyBank giving local customers $100

Company apologies for problems with online banking
KeyBank giving local customers $100
Posted at 3:03 PM, Oct 14, 2016

KeyBank is depositing $100 into the accounts of former First Niagara customers who were locked out of online banking during the conversion process earlier this week.

Dennis Devine, co-president of Key Community, notified customers in an email Friday.

"As a First Niagara client joining KeyBank, you were promised a smooth transition. In addition, we pledged easy access to an expanded and improved online banking experience," Devine said. "Clearly we didn't keep that promise because we know that you had a very difficult time logging into online banking and then long wait times when you called us for help. Our best effort did not result in our best foot forward. We let you down and we apologize for that."

Earlier this week, former First Niagara customers whose accounts were absorbed by KeyBank flooded social media with complaints about not having access to online banking. A number of clients took their frustrations to the banking giant's Facebook page, some saying they waited on hold for hours before finally hanging up in frustration.

KeyBank says it is contacting all clients who experienced trouble and is making a $100 deposit in their accounts to show appreciation for remaining loyal through the transition process.

As of Friday, 49 percent of eligible clients have now enrolled in online banking, according to KeyBank. Fifty-three percent of calls are now being answered in 30 seconds or less.

Cleveland-based KeyCorp acquired First Niagara Financial Group earlier this year in a $3.6 billion dollar deal.

Approximately one million First Niagara customers transitioned to Key as part of the merger, while 95,000 others were absorbed by Northwest Bank.