Customers who call their bank to get its routing number may also need another service, like a balance transfer.
Banks and credit unions trying to attract and retain new customers frequently worry about their technological capabilities, but a new survey suggests poor customer service is over three times as frustrating to their clients as poor technology
Recent results from the Rivel Banking Benchmarks survey show that getting the runaround from bank staff and poorly trained staff are top frustrations for banking customers
“One of the primary focuses of the bank is state–of–the–art technology,” said Kim Rock, executive vice president and chief operating officer at Institution for Savings in Newburyport. “But the belief of [this] bank has always been and will always be that personal service will make us or break us.”
Bad Service Drove Customers Away
More than one-quarter of Massachusetts households reported being dissatisfied with their bank, according the Rivel Banking Benchmarks, which interviewed over 10,000 bank and credit union customers across Massachusetts. The results as of January 2020 showed that 27 percent of households and 31 percent of all businesses in Massachusetts are unhappy with their bank.
But reactions do vary across the state, Rivel managing director Bruce Paul said in an email. North Shore residents reported being happier with their banks compared to those on the South Shore. In Suffolk County, businesses are almost 50 percent more likely to leave their bank than those in western Massachusetts.
“This has less to do with cultural differences and more to do with the relative performance of the individual banks and credit unions in each area,” Paul said.
Some of the problems with banks involve staff. Top frustrations cited by customers included getting the runaround from bank staff (cited by 27 percent of respondents) and poorly trained staff (19 percent). Only 13 percent of respondents said their bank’s poor technology was a top source of exasperation.
“Bankers are spending so much money on technology, but it’s all transactional. They’re not getting the benefit out of it – and neither is the consumer – when they don’t know how to use it and it’s not easy and fluid to get to the next step.”
— Al Rosenbaum, executive vice president, Silvercloud Inc.
Call centers are frustrating Massachusetts consumers as well, with 39 percent statewide saying their bank or credit union call center was of poor quality.
Paul pointed out that these numbers can vary from bank to bank. Customers at 14 banks across Massachusetts report that their call center is superior, actually increasing their likelihood of remaining with their bank long–term.
But another 29 Massachusetts banks have call centers that perform so poorly that customers have switched banks.
“So, each bank needs to understand their own customer experience as well as their competitive situation,” Paul said.
Embedded in the Culture
Three North Shore lenders performed particularly well in the Rivel study: Merrimack Valley Credit Union, North Shore Bank and Institution for Savings.
Rock, with Institution for Savings, said the bank makes sure employees understand the importance of customer service
“It’s embedded in our culture,” Rock said. “We really drive it home to our employees that it is the No. 1 priority: delivering great customer service.”
Customers most often call their bank or credit union is to find out its routing number in order to use services like balance transfers.
The message is emphasized when staff members begin training, Rock said. New employees are expected to be able to recite the bank’s vision “to positively affect the lives of every person, business and organization within the communities it serves.”
Instead of navigating automated phone prompts, customers who call the bank reach a receptionist, who then directs the call to someone for service.
For customers who want to use the website for service, Institution for Savings will be launching a new website, likely in the second quarter, that will include a search function to help locate answers to questions.
Having products and services, including technology, that meets customers’ needs is also critical to satisfying customers.
“We want employees to have conversations with customers,” Rock said. “Find out what their needs are, what products are best for them and what service is best for them.”
Automation Offers Obstacles, Solutions
Ask a community bank CEO or COO why customers leave banks, and they almost always point to technology rather than customer service, said Al Rosenbaum, an executive vice president with banking solutions firm Silvercloud Inc.
Five to 10 years ago, technology would have been an issue, Rosenbaum said, with big banks introducing online and mobile services. Many community banks and credit unions have caught up on technology, but now the problem is support services, Rosenbaum said.
Even though technology is designed to provide convenience and ease, banking customers have varying levels of comfort and learning curves when approaching technology.
“Bankers are spending so much money on technology, but it’s all transactional,” Rosenbaum said. “They’re not getting the benefit out of it – and neither is the consumer – when they don’t know how to use it and it’s not easy and fluid to get to the next step.”
Customers are not the only ones who need support on how to use technology. Community bank and credit union employees have problems servicing these customers, whose questions could involve complex transactions. Policies and procedures developed over the years might equal thousands of pages, Rosenbaum said, and often vary depending on specific scenarios, making searching for answers difficult and time-consuming. And these problems can lead to customers getting the runaround.
Diane McLauglin
Customers who try to self-serve online can encounter search functions and chatboxes that do not end up pointing to the correct answer. Most customers who contact their financial institutions to find their routing number also need to use another service, like direct deposit or balance transfers.
Just as Amazon’s site guides users and offers suggestions, banks and credit unions can organize information in a way that allows the bank to be proactive.
“I’ve got to call you for the routing number because it’s not easy to find on the website, it’s not easy to find in mobile banking,” Rosenbaum said. “Then when you give them the routing number, just like on Amazon, give them the next three reasons that they’re likely going to [need] a routing number and let them complete the journey.”
But throwing technology at the problem is not enough, Rosenbaum said, adding that banks and credit unions need to invest in staff with expertise to help find solutions for improving customer service.
