My wife called our bank at 9am the other morning and no one answered the phone. She called back a little later and someone answered after the 15th ring. This is not uncommon when calling this bank. Once she reached a loan officer for some basic info, she was less than impressed. Result, she’s moving her checking account to a bank across the street. She’s had her checking at the current bank for nearly 30 years. The service is hit or miss at this bank and she’s leaving because of the service. We also live in a small town and like most people, we know employees at both banks which will make for an easy and smooth transition.
Now, take a look at the two articles we’ve placed links to below. SunTrust is cutting 40 branches in the first quarter of 2013. They closed 43 branches last year. Over the last 5 years, First Horizon has cut its number of branches by 17%. These are just two examples of what’s going on in the industry. Both banks cite increased technology such as mobile banking as the main reason for the cuts. They also acknowledge that relationships are a key to continued success moving forward.
Here’s the deal. The reality is that mobile banking, internet banking and the like will reduce branch traffic. However, much of the reduction in traffic can be attributed to poor service. Most bankers really don’t want an honest assessment of their service. They think if they don’t know it’s bad then it’s not bad. Kind of like the little kid who closes his eyes and thinks because he can’t see anyone, then no one can see him. Many customers are just moving to other banks or they are going online for banking because it’s a lot easier dealing with a machine than an employee with an indifferent or negative attitude. Make sure your customers are moving to mobile and internet banking for the right reasons. Measure the level of customer service and management of your branches with tools such as phones shops, employee surveys, customer surveys, etc. Ensure that your branch team is driving sales in and not driving customers away. Use the legitimate reduction in branch traffic as an opportunity for your branch team to cross-sell and develop new business and advocates. Do things the right way and branch traffic and profitability should actually increase.
Balancing Technology and Service
