Customer service in banks, especially at the branch level where the customer makes his first contact, leaves much to be desired.
Knowledge of banking and the importance of customer service are apparently missing and indifference and ignorance of employees rule the roost. The absence of training and transfer and build up of knowledge have become major casualty and this perhaps can also be a reason for ineffective transmission of various policiesof the Reserve Bank. Ignorance and lack of commitment of officials at the counters puts off customers in no time. This is felt more in new generation high-tech banks.
Several high level committees have been appointed to look into the grievances of customers and improve customer service in banks. But how far they have been able to improve the quality of service and inculcate in the bank officials, particularly at operational levels, the habit of customer service as a way of life and that they are duty bound to improve banks’ business, attract and retain customers with a zero tolerance level for complaints, remains to be seen.
Classification of customers
In practice, customer service depends on the formal or informal classification of customers by banks. Generally, customers are classified as celebrity customers, well- connected customers, high net worth customers, non-resident Indian customers and ordinary customers.
Celebrity customers get all services at their doorsteps just by a phone call and at any point of time. So is the case with well connected customers.. For high net worth customers banks have specialised branches. NRI customers normally are also well taken care of. It is the ordinary customers who are at the mercy of the staff.
Customer satisfaction and customer delight were the slogans progressively propagated by banks over a period, but completely given up these days. No such slogans are heard from any banks these days.
Customer disappointment and customer desperation are the experiences of many a customer and that they silently suffer and put up with such poor service is a fact revealed from contacts and informal surveys with friends, relatives and persons of average means like servants, taxi drivers, small vendors, shop keepers, co-travellers and pensioners.
Ordinary customers who seldom care to take up their problems with the higher ups or do not have the wherewithal to resort to the grievance mechanism of the banks are perhaps the most ignored lot by the authorities while assessing the quality of customer Service.
The grievance mechanism of banks is so designed that it takes time, energy and patience to register the complaint and the customer will think several times before opting for it.
As a result, there are less complaints in official records. Ordinary customers like pensioners, elderly people, and those who are illiterate and have no backing have learned to put up with poor service. It is not practical to resort to grievance mechanism for these customers. If indifference is the issue in public sector banks, ignorance is the problem in new generation banks.
The fact that financial and banking inclusion have not taken off the way the authorities wanted them to is on account of lack of involvement from bank officials and their lackadaisical approach to provide the very minimum customer service. For ordinary customers who just want to save some money either in SB or FD or recurring deposit account, is there any customer service in banks free of hassles?
KYC norm
The concept of Know Your Customer has unfortunately become very handy to keep away the customers instead of understanding the customers, helping them to improve their banking habits, provide them the dignity that they deserve.
The objective of KYC is to eliminate undesirable customers from the point of view of their possible indulgence in illegal and anti-social activities but unfortunately all prospective customers are suspected and kept away by citing some deficiencies in some documents which they provide to banks. The applicability of KYC should arise only after closely seeing the operations in the accounts but in reality, it has been observed as a rule rather than an exception to deny the prospective customers access to any banking service.
Of late, the banks also find comfort in purchasing bulk deposits and borrowing funds from institutions, including the Reserve Bank, to make lending and investment.
The strength of banks depends on mobilised deposits is an established truth. This requires human touch and humane approach. Potential for mobilisation is very huge in this country and people by tradition and habit are savings minded.
Banks have to change their business models and introduce savings products suitable to different categories of customers to attract, retain them and their savings.
Customers, whether small or big, are the main source of business and bank officials at all levels must realise this. Rules, regulations and supervision are only to have some system and order in the business and service to customers is the backbone of banking and its business.
(The author is a consultant based in Mumbai. Views are personal).
Comments:
One of the reasons for perceived reduction in customer-service levels in
the front end i.e the branch, is the increased movement of activities
from the front-end to the back-end.
Hopefully, service levels should improve in the near future.
Customer Service in banks
I was prompted to write this note after reading Shri.T.V Gopalakrishnan’s article on customer service. I agree entirely with the views expressed by him ,except the one with regard to classification of customers. My experience is that all customers without proper contacts, on an on-going manner, with people sitting inside the counters , are treated badly. With the turnover of staff, particularly in new generation banks, being of a high order, a customer rarely meets the same official on the other side of the counter for a second time, as one does not visit branches frequently. Hence a customer , despite allocation of a so called Relationship Mangers, who disturb with phone calls when a customer is taking a nap in the afternoon, degenerates into a number called “customer ID” in the “click ,click, culture”. To give my own experience, I was among the so called “privileged customers” of a new generation bank for fifteen years. At different points of time, the bank had insisted on updating records with copy of PAN card, proof of address , etc and I have complied with the requests . When I did not get the Tax deduction certificate by June 30,2012, I visited the nearest branch in the first week of July this year. What stumped me was the reply from the bank official that Tax deduction certificate would not be issued as a copy of my PAN is not registered with the bank. I submitted copies of PAN card and ID card issued by Election Commission. The bank refused to update the data as the initial of my late father was omitted on the ID card issued by the Election Commission ! Kyaa khayaal hai ? I closed my account with the new generation bank and opened one with an old generation private sector bank near my residence.
My wife has a more humorous experience with regard to customer service in banks. She had an account with a branch of a nationalized bank. Although the working hours of the branch started from 08.30 hrs and her working hours started from 09.00hrs she used to visit the branch early enough so that she could complete the work in the branch and reach her work place in time. As staff members had to come from far away places , the cash counters were opened invariably late .Those were the days before ATMs were set up. As she was fed up, she wanted to close the account and one staff member handed over the prescribed form immediately. When she wanted to make a complaint , the staff member advised her that she could put the complaint in the box meant for the purpose, but cautioned her that the key of the box is missing for the past few months it was not opened at all !
KYC norms should not be used only to “Kill Your Customer” as the former Deputy Governor Dr.S.S.Tarapore mentioned in one of his articles. Change in the business model also may not help. How to bring about an attitudinal change is the main issue. Stopping of outsourcing of account opening procedures may also help.
it is true. Given the inflation and the growth in e economy, the deposit figures are swelling
without much effort;add to this absence or near non availability of other options to deploy
the funds available. In this situation,neither the staff at the branches nor the officials at the
higher levels are concerned about the customer service,which is crucial for the very
existance of banking activity as such. It is also true that the distinctive classes referred to
are being taken care of,while the neglected or the ordinary class are not. KYC is another
area. It is surprising that a customer,today under core banking,having accounts with the
branch/bank requires to open another account, either singly or jointly, is asked to submit
the required Info /documents again. Having been in the industry for over 30 years, I fail to
understand the need for such a demand that too when u can have all the required info at
the click of a tab/or mouse,whatever it is. Reason. Perhaps couldn't care less att
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