Did that really happen?
We deal with a large number of banks and bank employees throughout the year and we’re always amazed at some of the things we see from community banks. We expect craziness at the big banks! But believe it or not, all community banks are not perfect. Here are just a few of the craziest things we’ve come across this year.
Our talent in this market isn’t that good
This is what the head of retail in one community bank told us as to why she wouldn’t make changes to staff with negative attitudes, low to non-existent performance, and refusal to support the culture of the bank. She felt that her people were the best and brightest she could find in their market. She actually thought her people and the talent pool in their market weren’t smart enough to do any better. We’re not sure if she really understood that she was part of that same pool. We didn’t stick around that nightmare long enough to find out. We’re just glad we don’t work for her.
Can’t convert years to months
We called a community bank last month and asked for the 4 and 5 year CD rates. Instead of answering our inquiry, the employee in customer service quoted the 7 to 90 day rate. We asked again for the 4 and 5 year term. With 10 second pauses between each question, she informed us that she only had monthly terms and didn’t have the 4 and 5 year rates. She offered to put us in touch with the local branch for that information. So we rephrased the question and asked if she could give us the 48 month and 60 month CD rates. She then quoted the 72 month rate. We’ve come this far so we gave it one more shot and asked again for the 60 month CD rate. WooHoo… She quoted it and even gave the APY! We’re guessing she left her years to months conversion chart at home that day. Maybe there’s an app for that!
Not quoting APY or APR on rate inquiries
In this compliant culture of banking, we still see banks failing to give simple rate quotes in a compliant manner. This year, over 40% of community banks failed to quoted APY on deposit products and over 85% of lenders failed to say if the quote was the APR when quoting loan rates. One day, regulators are going to figure that out. When they do, just know that they didn’t hear it from us.
A flyer inviting a commercial customer to the bank’s customer appreciation day
A business customer of a community bank recently showed us a flyer, inviting them to a customer appreciation day. This particular customer runs over $1 million through this bank each year in their operating account and keeps a minimum of $300,000 in low interest, savings products there as well. Aside from their monthly statement, this “invitation” was the first contact that the bank has made with this customer in the over seven years they’ve been a customer! Hopefully they’ll get a choice of both a hot dog and hamburger at the appreciation day. Who knows, maybe they’ll even get a bank logo keychain or hat!
The other bank has a better rate
We love the movie, A Miracle on 34th Street when Santa Clause recommends that some Macy’s customers go to Gimbels for a better deal but we’re not thinking most banks want their employees recommending other banks over theirs. During our mystery shops throughout the year, we have heard from a few several different community bank employees that their rates weren’t as good as ABC bank. You heard right, they actually referred us to another bank! The good news is that in each case we were referred to another community bank. Hopefully they paid for referrals!
The little things matter
These are some of the crazier things we’ve come across in Community Banking this year. It never fails to amaze us on a daily basis. Some we can laugh about now, but imagine if this was your bank? Keep in mind that many of these little things we see in community banks on a weekly basis can quickly add up to a much greater negative than what we’ve shared here. Whether it’s an order-taker mentality on the phones, employees texting and using social media throughout the day, or managers/leaders saying one thing and doing another, take some time in 2016 to deal with the small stuff but don’t ignore the 800-pound gorillas. We don’t want you wondering if our next blooper blog is referring to you.
