I’ve had checking and other accounts (at different banks) for over 30 years. I’ve had business checking accounts for over 20 years. I’ve had numerous loans over those years. I’ve dealt with regional banks, national banks, but mostly community banks. The one thing they all have in common is a serious lack of customer service. Each will tell you they offer the best service, but none of them are showing it. Each will tell you they care about your business. None prove it. There’s a disconnect from what they say and maybe even believe to what they do. In fact, many will read this post and think it doesn’t apply to their bank. Sadly, there’s a 90% or more chance it does apply.
Here’s what I mean… Over the 30+ years of all my bank dealings, I’ve never (no exaggeration) received one follow up call or note or email to thank me for my business. I’ve had just one loan officer ask me to open a checking account as I was doing a loan. It was actually after the loan was closed and a somewhat half-hearted effort. Guess what, I turned him down. I’ve never had one banker recommend that I refinance my home. What I find, is that each of the bankers I’ve dealt with are on complete cruise control, meaning they go to work, collect a check, and go home. If you, the customer, ask for the business, they will happily and very politely help you out. Other than that, you’re on your own. That’s the view from my experiences.
The more than 90% of community bankers and banks that fall into this description need to make a change. If not, your days are literally numbered. You will not survive. You can’t survive. You cannot compete with the networking and technology of the big banks and if you don’t have a relationship with the customer, then you have no chance. There are too many loan officers that are only concerned with their book of business and couldn’t care less about rounding out the relationship. The same can be said of retail employees. Too many silos, too much protecting of perceived turf and too little focus on the relationship with the customer and the needs of the customer.
How do you solve this ongoing issue? Start with an incentive plan. If you don’t have a results-based, advocate-based incentive and tracking process, you will have no way of driving a relational culture in your bank. You will have no way of seeing which employees are truly career and customer focused. Without it, get ready to hang on because these next few years will be rough. Get it, and the next few years and beyond will be your best and most profitable years.
