On the first day of February this year, Bank of America’s website experienced some technical difficulties, keeping some customers from accessing their accounts. Other major banks, including Wells Fargo and Citigroup, experienced a similar situation last year when “hacktivists” flooded and slowed down their respective sites. These stories, on top of overall distrust of large banks after the 2008 recession, have inspired some financial institutions to concentrate more heavily on customer service.
The Chicago Tribune reported this week that Bank of America CEO Brian Moynihan sent letters to more than 270,000 employees with a new goal to increase revenues – better customer service. Not only did the bank have a 63 percent decline in profits in the last quarter of 2012, mostly from the large volumes of defaulting loans made before the crisis, but the bank was also the last of all major U.S. banks in the American Customer Satisfaction Index, and the only bank not to improve its score since the crisis.
Using tools to reverse this trend
Studies have also shown that consumers are turning towards smaller banks and credit unions because of their reputations of more personalized service. However, something major banks generally offer is extensive services that smaller institutions can’t compete with. With customer management tools, major banks can offer the best of both worlds – personalized service as well as more financial options.
Case management software can provide banks with information and the expectations of their customers to allow employees to offer personalized advice and services. While little can be done when a bank’s website is down, having strong, personalized service can keep customers more confident, less likely to leave and increase overall profits for financial institutions.