Having identified the importance of Corporate Banking, majority of banks create specific departments to ensure that their needs are met. Given the magnitude of their transactions and their importance these companies need a designated Relationship Manager.

Corporate Banking

The relationship manager provides advisory services on for example, investments and Capital decisions. The relationship manager also tries to identify change in the corporate customers’ need the relationship manager comes up with innovative solutions to meet this corporate banking need.

Managing this Relationship is slightly different from managing an SME as the failure or success of a corporate has a great impact on the Bank. So whether these Corporate Companies have credit facilities or not, the Relationship Manager should always be in touch with the following areas of the company

Corporate banking- Governance of the Company

This includes the members of the Board of Directors, the Board of Management and the management structures in place. The shareholding structure of the company and the bank also investigate the integrity of the team and what impact the corporate would have on the reputation of the company. The quality of governance is very critical as it can help determine the future of the company.

Corporate banking -Recovery Management

This is key to the stability of the business and it is important to establish in general if the corporate has a policy on the recovery from any unforeseen factors that would greatly affect the business. In other words the disaster recovery plan or the business continuity plan is very important and must be disclosed to the bank.

Corporate banking-Technology

This affects database management, establishing whether a company is up to date in technology, which is changing rapidly. Updated technology greatly ensures good database management, resulting and leading to accurate reporting, increasing transparency and accountability. Technology may also be used to reflect the financial health of a corporate.

Corporate Banking-Risk Management

Establish whether the corporate has identified the risks that could greatly affect their business. Confirm the measures that have been put in place to manage the risk. These measures must be well documented. The corporate should have unit monitoring for the ever increasing risks.

Corporate Banking -Management of Manpower

Establish whether the corporate optimizes manpower resources in terms of numbers, knowledge and even skill. This in turn maximizes productivity, improves quality of operations.

Given the current economic crises that has greatly affected many corporate companies, it would be prudent for the banking industry to keep in touch with their corporate customers operation  by providing relevant corporate banking solutions.

 Clients Customer experience at a bank

After several months of literally  being tracked down by a sales representative or sales executive as they prefer to be called my group decided to open an account at one of the banks, being satisfied that that the features looked good and would serve the interest of the group.

Six months down the line the group held elections as some of the office bearers were moving out of town and it would be prudent to replace them to allow smooth running of the group. There was therefore need to change the account signatories and one of the office bearers was mandated to get all the requirements needed from the bank. This was in readiness for when the other office bearers would be available for this process.

After ensuring all the requirements previously obtained from the bank were in place the office bearers walked confidently to the banks sure that the process would take the shortest time possible. When they got to the customer service desk after patiently waiting on the queue  a blank looking officer informed them that those are not the requirements and went ahead to produce a totally different list of requirements.

Protesting, they explained that they got the previous requirements from that desk and even their request to see the manager was declined. As at this moment the group has not been able to change the signatories and this has greatly hampered the operations of the group.

Reasons for poor customer experience

• Once one opens an account then they become a statistics to the bank, the customer no longer has a face or a name. The bank can proudly say they have reached the one million mark in number of accounts maintained. Customer experience is no longer necessary when the numbers are being achieved.
• Lack of staff training on all areas of banking. Training of staff members on the procedures of the bank is no longer a priority to the banks. It seems like provided you can communicate, press keys on the computer key board and sit on a desk that’s it. One will catch up on procedures as they sit there. This reduces the customers experience since the customer is not assisted.
• Quality of service is not in the interest of banks. It is the number of transactions that matter, profits have become more important.
• Banks are aware that the justice system is slow and a customer needs to have huge resources to file for damages. The banks will not bother to keep their promises. An ordinary account holder is unable to sue the bank due the costs.

Ways for the banks to improve customer experience

• Training is a must. The staffs must be trained in all aspects of serving the customers not just in selling.
• The bank must have standard operational procedures which are known and available to all staff. This will lead to consistency on all operations and forms that customers have to complete. This enhances customer experience.

Customers are the reason why banks operate. The banks must therefore make it a point to improve on their customer experience offering.

relationship between bank and customer

It is extremely important for both the banks and the general public to be aware of the relationship between bank and customer. Both parties should know what to expect when one walks into a bank and what to expect from the relationship if a contract is signed by the two parties.

Like all relationships, one needs to know their expectations and rights in order to have a mutually working relationship. With this in mind we will look at some of the contractual relationship between bank and customer:

1. Debtor/Creditor Relationship between bank and customer

A debtor is one who owes while a creditor is the one who is owed. When a customer opens a deposit account at the bank, the bank becomes a debtor to the customer as it is holding the customer’s money, which should be repaid when the customer demands it. The customer is therefore the creditor to the bank. In this relationship between bank and customer, it is the customer’s responsibility to ask for their money back and it is not the bank’s job to seek to repay the debt.

However when the customer borrows money from the bank, then they become the debtor to the bank while the bank is a creditor to the customer. In this relationship between the bank and customer, the customer is expected to repay the debt as agreed where the customer defaults; there is a problem with the debt.

2. Principal/ Agent Relationship between bank and customer

When a bank is dealing with a third party on behalf of the customer, the bank is an Agent while the customer is the Principal.

An Agent is one employed to work for a Principal to make contracts on their behalf. A Principal is one who informs the Agent what he wants him/her to do on his behalf.

Other examples of Principal / Agent relationship between bank and customer is when the banks arranges for insurance, sends money either abroad or within the country (generally money transfer) on behalf of the customer. Agency banking is another example of Principal agent relationship between bank and customer

3. Bailor/Bailee Relationship between bank and customer

One of the bank’s services offered to the customer is to receive valuables and documents to hold on their behalf. When this happens the bank has to take reasonable care of the property and this is a Bailor/ Bailee Relationship between bank and customer.

A Bailor is the depositor of the property who is the customer. A Bailee receives the property from the Bailor and must look after it in a professional manner. The bank is then called the ‘Bailee for reward’ since a fee is charged.

There should be complete good faith especially where customers have come to rely on the banks advice which sometimes is called Fiduciary Relationship. The relationship between the Bank and Customer creates an expectation of trust and there should never be undue influence exerted.

 Definition of Customer relationship management in banks

customer relationship management in banks

This can be defined as the degree of happiness or satisfaction a customer realizes with a bank product or service.

Customer Relationship Management in banks can be referred to as the ability to understand, sometimes anticipate and manage the needs of the customer.

Purpose of customer relationship management in banks

Basically the main purpose of customer relationship management in banks or customer satisfaction is to enable banks customer retention and attract new customers to enhancing business growth.

A satisfied customer is a great marketing tool for banks since these customers will help improve the banks business growth through referrals. Satisfied customers also give positive publicity hence leading to banks improved bottom line.

Banks should at all times strive to increase business through speed, agility and real time responses to the existing customer needs. This is because attracting new customers involves huge costs in term of promotional costs, advertising costs and even follow up costs. The longer the relationship a customer has with the bank, the better the returns they bring. This interaction and relationship should result in increased profitability to the banks through revenue growth and operational efficiency. The relationship also leads to customer loyalty.

Organizations caring for their existing customers are almost definitely likely to be winners. There are great benefits to the banks which adopt Customer Relationship Management in banks.

 Benefits of customer relationship management in banks include:

1. The existing customers will make referrals which likely result in business growth.
2. There will be a positive public image resulting in fresh customers being attracted, increasing the bank’s market share.
3. Reduction in cost in attracting new customers and this will result in the banks posting high profits, hence great return to the shareholders.
4. Higher returns from existing customers as long relations will be maintained and boost in the banks profitability.
5. There is loyalty by the existing customers and they will not transfer their business transactions to a competitor. This reduces attrition rate in the bank.
6. Staff morale is boasted as they are proud to be associated with a bank with a great reputation. This reduces staff turnover and costs associated with hiring new staff and training.

The current advancement in technology actually makes it easier for banks to adopt the Customer Relationship Management in banks as information is readily available.

Help with debt

When taking a loan it is important to get debt advice or help with debt decision and timing. This advice includes and is not limited to: how much money to borrow, whether the loan is necessary, the cost of funds and the best repayment period and is it a quick Loan.

The borrower should ensure that they understand the terms in the contract. They should first read and ask for clarification on any issue not understood. Help with debt jargon may be sought from legal and financial advicers.

In the event the loan becomes a challenge, the borrower should seek help with debt repayment immediately.

 Tips on help with debt management

1. Self examination- candidly investigates the new situation and collects as much information as possible to the exact cause of the default. Borrower has to be very honest so as to get the root cause of the problem if help with debt is to be realized.

2. Ensure that all the paper work concerning the loan is in order, including the position of the collateral held. Factors to be confirmed about the collateral are: if the charge documents were well executed and if the security margin is still adequate.

3. A meeting should be held with the lender to discuss the position of the loan and how they intend to repay the loan. The lender is also interested in the borrower making the payments on time, and so they help with debt management skills. The lender sometimes allows the loan to be rescheduled.

4. During the meeting a clear objective on the way forward based on the information already collected should be obtained. The lender should strike a balance with the borrower and come up with an acceptable and the best solution for both parties involve without any greater loss being incurred.

5. The lender should help with debt restructuring. The lender should confirm in writing to the borrower the decision of the meeting. The time frame for the repayment and the reviewed repayment period should be clearly indicated. At this point any penalties to be charged should be indicated to avoid last minute surprises.

6. The lender should control the position agreed on firmly and carry any intended action through. The lender should help with debt diarizing and sending reminders to the borrower.

Any kind of Help with debt should be welcomed by the borrower so that they avoid debt problem loans

After rushing into the banking hall in the nick of time, the customer service agent in the bank looked at the time on her computer and it was pretty obvious she thought i was late. This made me want to apologize for such a mad dash into her territory. I though she should have been happy for a customer since there was no other customer in the banking hall.

customer service in the bank

I was the one who talked to her first, since she had not acknowledged me by saying hello or good afternoon. After I told her what had brought me to the bank and the types of bank accounts I wanted to acquire from her, she told me that I could fill out forms but I would only get my products and accounts on Monday since they had run out. This was alright, but I would expect that she would try to sell me another product after finding out why I was interested in the product I was looking for. She could also have sent me to the banks’ other branches for the same product.

The customer service in the bank was lacking since I left the bank with only what I asked for, nothing was offered voluntarily. The bank officer did not apologise for not having the products.

Below are 4 basic “musts” for customer service in the bank to attract and retain customers.

Customer service in the bank –smile

The receptionist or front desk officer should smile and welcome all who come into the branch with an appropriate greeting. The greeting and smile should not be for those who look like they have money but for all who come into her domain. a smile is very simple and easy to give, but it is very important to customers.

Customer service in the bank –  listen attentively

The service agent or bank officer should listen to my request or needs to determine what best suits me. The service agent can persuade a potential customer to get more than one product whne they have the product in place. The potential customer may be after information and advice and when this is given before even opening an account, then the customer feels more satisfaction. They do not have to come later to the bank to sign up for another product when they could have finished at ones

Customer service in the bank – available products

The bank should have a well organised stock control and replenishing system so that they do not run out stationery, cards and currency denominations. It is very frustrating to get to the teller who advices you they can only pay in denominations you did not want. Have enough of all currency or advice customer to give you a few minutes as you get the denominations. Sometimes the stationery , like deposit slips run out and one is forced to move from place to place looking for the forms. They are informed the forms are not currently available after wasting time in the banking hall.

Customer service in the bank – Man the service desk

The service officer desks are in many banks out in the banking hall. It is very vexing when the service officer is never seated at their desk or has to keep moving to the back office. Sometimes the service officer also answers queires on their desk so they are not able to attend to customers who are face to face with her. The banks should have the phones received by others so that the customers in the banking hall may be served.

Many of us have many bad things we can say about our banks’ customer service.we should also acknowledge when the banks go out of their way to ensure we are well served and taken care off. Many banks have customer service as a deliverable for their staff and the banks must ensure customer service in the bank is felt by the customers.