Cheryl has a post about banking customer service that ends with the comment:
And they wonder why consumers hate banks. No amount of ads about happy banking, or your bank caring about you, or determined to be different, or whatever they advertise to try to convince you they care about you, will ever change the banking culture.
I am currently having some issues with my bank. And three thoughts strike me:
- The greatest asset that many large, underachieving businesses (and that includes you, Australian banks) have is customer apathy. Seth Godin puts it well.
- The banks are in for a(nother) shock. A few months ago, when I was still working for a certain financial regulator, a former exec from one of the retail banks came in to teach us about the banking sector. It was an interesting day but one thing stuck in my mind. In the 90s, the Australian banks were caught out when their prime business (loans and especially home loans) got hit by new entrants such as Aussie Home Loans - with lower rates and better service. Now the growth market that banks are targeting is "wealth management" - i.e. advising people on where to spend their dosh. Based on this former executive, the banks seem to think that this market is theirs for the taking. I think it's more likely to be a repeat of the loans situation - i.e. new entrants creaming the incumbents with better offers and stronger service.
- Banks don't seem to understand that customer service means actually serving your customer, not your customer serving you. Not putting lots of bureaucracy in their way. Not hitting them with fees for everything (and most recently I have been charged a fee due to one of their cockups). If and when I become wealthy, why should I trust my future to someone who has no concern for me beyond the next fee hit opportunity and cannot be trusted with the most basic activities?
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