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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerI wasn't sure what to make of this study when I read it: Americans don't get emotional support from their banks. It seems that Americans don't feel that banks understand them, nor appreciate their business. I didn't think anyone needed a study to determine that; ever since I can remember, consumers have been complaining about banks.
There's another side to this study that concludes that bank customers can be hostile because of their dissatisfaction. Well, that isn't surprising either. Have any of these researchers ever stood in a bank line, ever needed to perform a transaction that took hours to complete, ever been charged an arm and a leg for a service that seemed routine?
Well, despite its predictability, it seems that International Business Machines Corp. (NYSE:IBM) has decided to study this via its IBM Global Business Services consulting division. While the study found that 52% of the respondents thought their banks' technical abilities were good, only 26% gave that rating when it came to "emotive attributes" such as "values my business" or "employees listen and follow up" or "makes relevant offers."
IBM wanted to see how happy customers are since they assumed that customers would be more wiling to stay with the bank and expand their business if they were happy with it rather than if they were not. But I say that it doesn't really matter since all banks are pretty much the same -- whether it be Bank of America (NYSE: BAC), Wachovia Corp (NYSE: WB), Citigroup or JP Morgan Chase & Co. (NYSE: JPM). I would expect to get the same "non-appreciative" service in all banks. The hassle of opening up more accounts in other banks or moving them around would usually make me stick with my long-time bank despite my issues with my bank. And of course, the study supports that too, with only 24% considered "advocates," while 39% are "apathetic" and 37% "antagonistic."
For some reason, it seems IBM was surprised by these last results and the lesson for banks the consulting service would recommend is to re-evaluate customer satisfaction and what brings it about.
I wonder whether IBM's recent foray into the banking industry in China along with Citigroup, Inc. (NYSE:C) has anything to do with IBM's decision to study the matter. I hope that China's Guangdong Development Bank's customers would be more satisfied than their American counterparts (should IBM and Citigroup win the bid of course).
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Reader Comments (Page 1 of 1)
11-13-2006 @ 12:47PM
Joe Smaha said...
Banks in general have way too much turnover in personnel. This includes not only the tellers which is the first employees to meet their customers, but branch managers and support staff are moved around to different branches way too often either by promotion or by attrition. Often, good key personnel are hired by industry that does business with the banks. Low pay and the constant turnover in key personnel positions leave the bank having to greet and deal with their branch customers with new for ever changing employees. They must stablize the Branch Mnager positions wherever possible and this along with better hiring practices will help stabilize the turnovers.
The banks also need to recognize that their turnover in key banking positions such as estate management, investment guidance and management, securities, and special banking for key clients needs to be stablized and more business phone calls and personal contacts need to follow.
Bank management waits for their customers to come to them and will only loan money to those that have money and will only loan their customers money in risk free transactions ( a lot because of federal and state banking regulations and requirements)
11-13-2006 @ 12:53PM
michael kay said...
LOL....."Emotional support"????...from your BANK!...It's a BANK!!!...NOT your Grandma! You want them to care!!...It's an institution that cares ONLY about surviving in a world where the money we give them makes THEM $$$..."Tellers" are clerks..."financial advisors" are ultra consevative and totally UNcreative...but of course WE are too lazy or TOO busy or TOO uninformed to "make the most" of our financial assetes and rely on OURSELVES !!
11-15-2006 @ 3:19PM
John Gavrila said...
Banking was great not too many years ago when I lived in a suburb of Detroit. The tellers and management treated you like a friend and were very helpful. I live in Florida now and feel that when I go to a bank to do business I feel as if I'm being attended to by children. The employees are not too knowledgeable about banking and don't really seem to care. Each month when I look at my statement on-line, my "great savings" (interest is listed and I'm notified that my "great savings" is about 40 cents on average checking balance of $5,000-$6,000. When I mentioned my disdain to the bank manager, she laughed and thought it funny. I thought it was ridiculous.
11-13-2006 @ 2:18PM
Michael Nomura said...
I was standing in line at a bank and when it was my turn the teller said next, After the teller saw my large balance, the teller said thank you by my name with a smile.
11-13-2006 @ 2:17PM
Michael Nomura said...
It is a insult when the banks give us interest at the rate of half of one percent or less. Am I suppose to feel happy with seven cents interest?
11-13-2006 @ 4:00PM
Dennis Goedegebuure said...
I have to agree with the title of the article.
I moved from The Netherlands to the US.
With my new bank in the US, I have been confronted with bank fees that I never knew existed. These are so old, that they have been dropped for a long time in European baking.
for example: Why do i need to pay an extra fee when getting money at an ATM from another bank. In Europe a guest visit is free accross all banks in Europe.
Why do I need to pay a Fee when I transfer money from my Etrade account to my bank? They make money with my balance!
Crazy!
11-13-2006 @ 5:38PM
Janet said...
Emotional support from a bank??? Get real! Just give me fair interest rates and everyone good, courteous service. It is very interesting how banks treat you according to your means. I have had rude, abrupt tellers until they looked at my account balances. Then they are obsequious to the point of embarrassment. What else can I do for you, Mrs. X? Haveyou checked our latest rate card, Mrs. X? Let me give you my card, Mrs. X; please call me if I can answer any questions. EVERYONE should get this service!