8 Ways to Improve Your Bank or Credit Union’s Customer

Service
Providing exceptional customer service in your bank or credit union is important, helping
to attract and retain customers in a competitive landscape. As technology becomes
more robust and customer-buying habits shift, banks and credit unions must be
constantly looking for areas of innovation and ways to meet the demands of a 21st-
century customer.

If you work in a bank or credit union and are looking for ways to improve your customer
service, here are 8 proven methods:

1. Empower Your Employees

Your customer service employees are your front line. As such, they need to have the
right resources to provide exceptional customer service. But many times they don’t. Far
too many banks and credit unions are falling behind when it comes to providing their
employees with the tools they need to most effectively do their job and that in turn not
only affects customer service quality but employee morale as well. For example,
inefficient and dis-organized knowledge base solutions result in confusion for your front
line staff. They can’t find the information they need which impact their confidence and
the confidence of customers. In order to change this, banks and credit unions need to
ensure that every employee has:
 Accurate, up-to-date and consistent information
 Immediate answers to their questions
 An easy way to search for information
Download the 2018 Guide to Improving Banking Customer
Service >
All too often the critical information employees need in order to answer customer
questions is buried in long policy documentation or only available by asking the “key go
to people” i.e. lending and managers. In a recent SilverCloud poll, a majority of banks
and credit unions reported that 30% or more of key “go to” staffs daily time is spent
supporting front line staff questions. This inefficient system leaves customers waiting on
hold and employees scrambling for information.

2. Educate Your Customers on Financial Literacy

The concept of educating potential and current customers on financial literacy is not
necessarily new. What is new is how banks and credit unions today are choosing to do
it and whom they’re now targeting. While financial literacy programs such as Operation
HOPE and Junior Achievement, have existed outside of banks for many years, targeting
low income and youth populations, it is only recently that banks have recognized the
 value in bringing educational initiatives in-house. In fact, Operation HOPE’s new model
does just that, bringing its financial literacy program into bank branches. And these
types of financial literacy programs aren’t targeted towards the low-income population
but towards middle class customers, who may need education but are embarrassed to
seek it out.
Bank of America has partnered with the educational site Khan Academy to offer its
customers financial literacy video tutorials. And Capital One offers its customers and
non-profit organizations free multilingual financial education through its partnership
with MoneyWise.
When it comes to financial education, the benefits for banks are huge and the avenues
to deliver that education are many. As a special report put out by the Federal Reserve
Bank of San Francisco stated, “At a time when competition in retail banking is fierce,
targeted financial education programs can open new roads into untapped populations,
such as the immigrant and underbanked markets. In addition, financial education
programs can also create goodwill at the community level and strengthen relationships
with local customers and community partners. In some cases, banks can also receive
Community Reinvestment Act credit for providing financial education to low- and
moderate-income individuals.”

3. Embrace Financial Technology

Staying in compliance with strict regulations and meeting customer demand for
immediate, on-the-go service are issues in which banks and credit unions are constantly
struggling. Yet, as banks and the financial sector as a whole catch up with advances in
technology, they are finding great opportunities to improve their bottom line and
increase customer satisfaction.

Some of the ways innovators in the banking sector are using financial technologies to
improve their businesses are through:

 Exploring advances in mobile payment options

 Using biometrics, such as voice identification and eye scanning, to increase security
 Integrating systems and converting old data to new formats
 Installing drive-through video teller devices
 Taking advantage of customer data and social media (that banks have but are not using
to its full potential) to enhance bank marketing and geographically targeted customer
offers
These are just some of the many opportunities that financial technology is making
available to banks. Due to a large number of start-up fintech (financial technology)
companies, such as Square, Lending Club and OnDeck that popped up after the great
recession in ‘08 there has been increasing innovation in the field. By looking to these
startup companies for inspiration, banks and credit unions can gain an immense amount
of knowledge and integrate systems and strategies that work best for their customer
base.
4. Become An Advisor, Not Just a Lender, For Small
Businesses
Small businesses, post-recession, are looking for more than just a lender. They are
looking for a business partner. For community banks and credit unions, this customer
need has created a unique opportunity. Yet, many banks and credit unions have not
figured out quite how to move beyond the traditional lender role they have played for so
long. Synopsizing a recent study by McKinsey & Co., American Banker said, “Serving
small-business customers more holistically is a goal that many community banks aspire
to. But few are truly making a transition from the lender role to an adviser one, and there
is a lot of revenue upside for those who do.”

By acting as an advisor to small business clients, banks gain an additional revenue

stream through fee-based services. For example, Lead Bank in Garden City, MO has
begun offering services such as strategic planning, capital raising and bookkeeping to
supplement their traditional loan and deposit offerings. First Financial Bank in Cincinnati
offers a minimal cash management service to its customers, which moves cash to a
higher return investment once the account hits a certain level.

“In the Netherlands, SNS Bank has reorganized its branches into a network of advisory-
focused, cashless banking shops that serve as a physical extension of the Web.
Branches are store-like outlets, have open spaces, tablets that customers can use, and
extended opening
Hours,” according to McKinsey and Company. “The original function of a bank branch –
depositing and withdrawing cash – has disappeared. Instead, the focus is on a
“consultant-style” mobile sales force specialized in selling complex products from both
the bank itself and other providers.”

Offering additional services beyond traditional lending benefits the bank through
additional revenue and the small business customer who gains a trusted financial
partner.

5. Segment Your Client Base and Create Personalized

Customer Experiences
With so much competition in the retail banking and credit union space, customers have
choices. What’s more, consumer trust fell after the recession began in 2008. For
institutions that wish to stay competitive and build customer trust, personalization and
segmentation of both messaging and services is crucial. According to an Ernst & Young
Survey and a 2013 Forrester Inc. research report, Financial Service Brands Fail to Earn
True Consumer Trust, “Financial service brands have long suffered from a lack of
consumer trust, but the 2008 financial collapse undermined the brand relationship.
Difficult as the road is, financial service brands must strive to secure brand trust to build
their brand. One of the key drivers of earning back customer trust is through superior
 personalized product offerings. High quality products that meet customer needs are a
key driver of trust in financial services.”

And with the massive amounts of customer data banks have in their possession, the
untapped opportunities for personalization are almost endless.

Credit unions have been on to this idea for years. Member relationships and community
are the foundation of these institutions. So it might not come as a surprise that member
satisfaction is higher among credit unions than banks. According to a study by First
Data, “Even though credit unions are less widely used than national and local banks,
they have the highest customer satisfaction: 92 percent of credit union customers are
highly satisfied, compared to 84 percent for regional/local banks and 75 percent for
national banks. The more personalized nature of the credit union membership
experience may account for this higher satisfaction.” But that doesn’t mean there isn’t
more that credit unions can do to improve their personalization strategies.

By personalizing messaging and services, customers are more likely to feel valued and
their engagement with your bank or credit union is likely to increase. Today, there are a
multitude of personalization technologies available to banks and credit unions that allow
for:

 Marketing automation that includes CRMs, lead scoring, robust email marketing
capabilities and ROI reporting
 Prioritization of high touch customers and members
 Individualized interactions based on customer communication preferences
 Information delivered specifically to a customer based on prior behavior and recent
transactions

Through personalization technology, customers are also able to access the information
they need immediately, without having to call the customer service line. And banks are
able to proactively view and manage customer journeys to better target each customer
on an individual level with products and services they need and want at that moment in
time.

6. Stay Consistent Across Channels and Branches

and at Every Touch Point
According to an Ernst & Young 2014 Consumer Banking Survey, omni-channel
experience was listed as one of the key areas for improvement among banks. The
survey stated, “To stay competitive, banks and credit unions need to continue building
out channel capabilities to provide 24/7 real-time access to banking, seamlessly, across
channels.”
Providing consistent and accurate information across channels is a constant challenge
for banks and credit unions. Yet, in today’s technological world, with customers banking
 online, on their mobile devices and on tablets in addition to at branch locations,
providing consistent information is becoming more and more crucial for institutions
hoping to provide the best in banking customer service. According to a Banking
Technology article, “Research from Google has shown that 46% of people managing
their finances online switch between devices before completing the activity. Often
customers will start research on a smartphone before migrating to a PC or tablet to dig
deeper into the information they need.”

7. Create Real Customer Relationships

Creating relationships with customers and members is at the heart of a strong customer
service strategy. It is crucially important to customer satisfaction and retention, but it is
often easier said than done.

In order to create strong customer relationships, banks and credit unions must:

 Build trust
 Be transparent
 Stay consistent and reliable

Trust and transparency go hand in hand and are very important in the financial services
industry, especially in the wake of the ‘08 financial crisis. In today’s modern world as the
traditional branch function changes, consistency across channels and branches is key.
Through customer and employee education, rewards and offers programs, personalized
marketing, technological innovation and an emphasis on customer centricity (waiving
fees for loyal customers, using data to personalize messaging and services, offering
free additional advisory services, etc.), these three tenets of a strong customer service
strategy can be achieved.

8. Test and Then Test Again

Just like no two customers are exactly alike, no two banks or credit unions are the
same. What works for one bank and one customer segment may not work for another.
The only way to know for sure what works in your bank or credit union is to test. And
then test again. Testing things such as frequency, messaging and channel of
communications; target markets for certain products; and special offers are just some of
the very many areas possible for testing and honing.

At SilverCloud we help banks and credit unions offer the best in customer service and
experience. Through a sales and service application that integrates across mobile,
Internet and digital banking channels, SilverCloud provides a consistent and intelligent
buying experience for the customer. Learn more about how we help banks and credit
unions provide exceptional customer service that translates into revenue, loan and
deposit growth.
Transcript of Citibank : Performance Evaluation
Perspectives: six perspectives on enterprise performance (Financial, Strategy Implementation, Customer
satisfaction, Controls , People and Standards)
Objectives: What the company needs to do to accomplish its strategy measurable objectives.
Metrics: Actionable and tangible measurements which support achieving objectives; this is what makes it
real.
Targets: Performance level expectations set against the strategic plan. For each metric, set a goal or plan
so progress against the objective can be evaluated. CITIBANK:
Performance
Evaluation PREFACE “Performance management is about creating relationships and ensuring effective
communication. It's about focusing on what organizations, managers and team members need to
succeed.” Why do even best of the strategies fail? In the early 1980s, a survey of management consultants
reported that less than 10 percent of effectively formulated strategies were implemented successfully
(Walter Kiechel, “Corporate Strategists Under Fire,” Fortune, Dec. 27, 1982). A study of 275 professional
portfolio managers reported that the ability to execute strategy was more important than the quality of the
strategy itself (“Measures That Matter,” Ernst & Young, Boston, 1998) A 1999 Fortune article, in a cover
story of prominent CEO failures, concluded that the emphasis placed on strategy and vision created a
mistaken belief that the right strategy was all that was needed to succeed. The authors concluded that
“…in the majority of cases—we estimate 70 percent—the real problem isn’t [bad strategy]…it’s bad
execution.” (R. Charan and G. Colvin, “Why CEOs Fail,” Fortune, June 21, 1999). Performance
Management Q 1 : Measures Targets Objectives Standards Involvement in
Community groups Measures Targets Objectives Financial Perspective To succeed financially, how
should we appear to our shareholders? Measures Targets Objectives Strategy Implementation Target
customer
Segment relevant to branch strategy Measures Targets Objectives People Development To achieve our
strategy, how will we sustain our ability to change and improve? Measures Targets Objectives Customer
Perspective To achieve our strategy, how should we appear to our customers? Targets Risks and Control
Measures Objectives Internal audits Components of a Scorecard - ROBERT BASCAL Measures Targets
Objectives Standards Measures Targets Objectives Financial Perspective To succeed financially, how
should we appear to our shareholders? Measures Targets Objectives Strategy Implementation Measures
Targets Objectives People Development Targets Measures Objectives Target customer
Segment relevant to branch strategy Involvement in
Community groups Risks and Control Internal audits Customer Perspective Targets Measures Objectives
To achieve our strategy, how will we sustain our ability to change and improve? Perspectives:
Six perspectives on enterprise performance (Financial, Strategy Implementation, Customer satisfaction,
Controls , People and Standards)

Objectives:
What the company needs to do to accomplish its strategy measurable objectives.

Metrics:
Actionable and tangible measurements which support achieving objectives; this is what makes it real.

Targets:
Performance level expectations set against the strategic plan. For each metric, set a goal or plan so
progress against the objective can be evaluated. Components of a Scorecard To achieve our strategy, how
should we appear to our customers? Advantages of the new performance scorecard -Focus on relationship
banking.

-Service was generally face to face or remotely depending on the wishes of the customers.

-Service expectations rose with a rise in net assets of customer.

-Broad range of financial products to be chosen from.

-Critical for measuring long term strategies of the firm -Focus on branch service as well as other services
like 24 hours phone banking and ATM services.

-Customer survey was conducted only among 25 customers. This may lead to biased results.

-A proper time lag was not given for the implementation of the new system.

-An exceptionally good performance in one area (e.g. audit) was not enough to satisfy a marginally bad
performance. Disadvantages of the new performance scorecard -James McGaran was the manager of the
most important LA branch.

-Been in the banking industry since 1977. With Citi since 1985.

-Intense competition from BOA and Wells Fargo

-Varied customer base: from sophisticated retail bank needs to novices.

-Revenues of $6m; Profits of $4.3m Introduction -Has consistently been a high performer and grew
rapidly within the organization.

-Emphasis on financial results

-New performance indicators showed low customer satisfaction ratings. New Performance scorecard was
built around the following criteria

FINANCIAL MEASURES: Focus on total revenue and profits

STRATEGY IMPLEMENTATION: Tracks revenue from a particular segment relevant to the Bank’s
strategy.

CUSTOMER SATISFACTION: Conducted through surveys. Emphasis on long term association. New
Performance Scorecard CONTROL MEASURES: Based on banks internal control processes. If rating <
4, bank is said to be at risk.
PEOPLE AND STANDARDS: Focused on the efforts of the manager to develop and communicate with
peers/ employees.
Rating Scale: “Par”, “Below Par” and “Above Par”

Finally, a global rating and overall rating for the manager was awarded. -Customer satisfaction and
control goals common across all branches.

-Bank Manager’s bonus linked to final scorecard.

“Par”: Upto 15% bonus.

“Above Par”: Upto 30% bonus (at least par rating in all criteria needed)
“Below Par”: No bonus Performance Incentives RECOMMENDATIONS Overall Performance:
-Rated above par for 1st and 4th Quarter and at par in 2nd and 3rd Quarter

Financial Measures:
-Financial Performance 20% above par
-Highest Revenue among all branches
-Greatest margin contribution , 48% growth
-Rated exceptional by Lisa

Strategy Implementation:
-Household acquisition increased by 21%
-Balances grew in all segments
-Above par rated by Lisa in three quarters Financial District Branch Performance Customer Satisfaction:
-Performance was below target for all the 4 Quarters
-Overall score was 66/80 which was just at par

Control Measures:
-Operating and Fraud losses of $137 thousand
-Some were from previous years and others out of branch control
-Rated above par

People and Standards:

-Excellent People manager
-Rated above par for Performance Management, Team work, Training and Employee satisfaction in
-Rated above par on standards such as leaderships, Integrity, Customer focus, Community involvement,
Contribution to business -James performed above par on 5/6 parameters of the scorecard

-Financial performance was the best as per industry standards and in comparison to other branches

-The customer satisfaction level improved significantly in the last quarter, so in a period of 1 or 2 quarters
he may achieve the above par standards What goes in favor of James?
-Below par customer satisfaction level

-Does not meet the overall minimum requirements to be rated above par

-If James given above par rating other managers will also demand the same relaxation and they may not
take new performance scorecard seriously What goes against James? -Customer satisfaction measures
included the services for which branch was not responsible

-Diverse customer base, so diverse service quality requirements

-The customer base was too large, so customization of services as per requirement of customer was
difficult

-Overall customer satisfaction was also hit due to absence of a teller in the third quarter Problems faced
by James THANK YOU! -Award above par ratings
-Override the system and provide James
with a bonus of 30%
Consequences:
-Resentment among other Branch Managers
-Undue favor or biased decision harming national image
-Act as a precedent for deviating from defined standards
-Customer objective of the Bank would be defeated Alternatives-
1. Implement Lisa’s decision -Discuss the performance criteria with James

-Recognize his exceptional performance

-Provide Highest priority to his demands

-Specify the weights for different criteria

-Balance the over achievement in other scales with other areas 2.Follow set standards

Banking sector: Why and How to Improve

Customer Experience?
October 03, 2017

Jerome Collomb
The world of personal banking is changing. In previous decades, bankers would find a
branch in their town and bank there for their whole lives. Bankers would deposit checks
and withdraw money at the welcome counter, open savings accounts with the help of a
friendly representative, and set up their loved ones with joint accounts at the same
branch. Banking used to be personal, and the look, feel and location of your branch
mattered more than anything. Now, banking is detached and segmented. Since the
innovation of the ATM machine, where and how a person gets their money has become
less and less personal, and yet it has become more and more personalized to their
customer experience. With the rapidly growing popularity of online banking, customers
are caring less about free lollipops at local branches, and more about integrated apps
and freedom to choose. Customers are less loyal, more savvy, and have way more
choices.
How does the banking sector keep up with this massive change? Some companies, like
Capital One, are already starting to embracing it. New products like the Capital One
360 bank account allows customers to set up an unlimited amount of savings accounts,
managed completely online, at the click of a button. The "360" option offers customers a
complete view of their account activity across all accounts on a user-friendly, easy-to-
read dashboard.

#1 Listening to Your Customer

No matter the sector, if a company is looking to improve their customer experience, the
first place to start is by collecting feedback from the customers you want to
target. Ask your customers, current or prospective, what bothers them about the
traditional banking model, and how you can stand apart with new services. People want
to make their life easier, and they will embrace the opportunity to tell you what they
need. Listening to your customers also means accepting honest criticisms and taking a
look at what parts of your company need work.

All in all, listening to your customers is about purging

preconceived notions about what you think your
customer wants, and finding out what
they actually want. Despite recent feedback
innovations, surveysremain the best and easiest way to
ask customers about their likes, wants, and challenges. #2
Turning Feedback Into Action
Getting feedback is one thing, actually doing something with it is another. Once you get
the feedback you need from your customers, you need to get a team together
to strategize what you can realistically implement, and how to do it. Not every bank is
going to be able to create national banking cafes, but maybe you can create a better
equipped mobile app that will allow your customers to cash checks online. Every
baby step towards meeting their needs will help your company in the long run, and let
your customers know that you're making an effort.

#3 Embracing Technology
As a general rule, meeting your customers needs will get easier and easier over time if
you decide to embrace technology now. Though it absolutely comes at an expense, the
reality is that the industry is not moving backwards, and catching your bank up to the
industry technological norms five years from now will be just as difficult, if not more so.
Slowly integrating online banking features, comprehensive mobile apps, online account
set-up and management, and email tech support will ultimately save your bank money
and give you the upper hand over competitors that are slow to catch up.

#4 Embracing Remote Banking

None of the major banks have completely eliminated physical branches just yet, and
Capital One Cafes are proof that banks are continuing to support the idea of having a
physical location where customers can speak to experts face to face. However, a great
way to improve your customer experience is shifting the focus of your "store"
from the brick and mortar building to your online and remote capabilities. By
perfecting the remote banking experience, you will allow more customers to embrace
this convenient way of banking and earn their loyalty by creating a system that fits
into their busy lives.
Whether or not Capital One's new approach will succeed will depend on their ability to listen to
feedback, continue to develop their services to meet their customer's needs, and avoid
appearing too desperate or trendy. All of these things depend on getting good feedback,
turning it into strategic action, and using technology and remote options in the smartest
way. This is the right approach for any bank looking to improve their relationship with their
evolving consumer.