Retail Banks: Staff shame and blame

[Rob Fox]

Hi,

There is evidence that front-line retail banking staff - those in the contact centers and in the branches and at the desks, delivering the processes, are feeling a sense of blame and shame for the hardship their businesses have helped create, as well as a loss of esteem.

I would love to know what the network thinks the retail banks can/should do about, this in practical and implementable terms?

Thanks.

Rob
www.engagingideas.co.uk

[Bay Jordan]

Rob

I confess I have no idea what the short-term answer to this is. People keep asking me who my ideal client would be and I say the major banks and the reason for that is that to me they epitomise everything that the whole EE issues is about. Their employees are little different to the production line workers in the auto factories of the mid 20th century. When a bank manager in a branch, the ultimate position of authority and respect in the community not all that long ago, is emasculated to the extent of having a limit of authority of £50K, he is hardly likely to feel empowered and it therefore follows that those below him will feel even less empowered or engaged.

Thus the employees themselves actually need feel little responsibility for their employers' predicaments. Unfortunately as your question recognises, it doesn't work like that, and the "employer brand" has now been totally destroyed and with it any self-esteem that they might have had left. In my book the only answer to that has to come from the very top; and entails both a fresh look at their business and how they involve their people in redefining it. As someone who (a lifetime or two ago) came up with the concept of the offset mortgage and was told by then manager to "stick to counting the beans" this is going to take a radical mental shift. I would like to think I have the answer to that, but it is a struggle to get the traction to take it further. (If anyone in this forum can help I would be most grateful!! )

Don't know whether that adds any value!

Bay

[Rob Fox]

Bay,

Yep it does add value. The banks have been adept at establishing a strong sales culture, supported by performance systems that reinforce aggressive growth biased behaviors and they have invested heavily in "smart" CRM and data mining systems as embedded practices. These, together with the call center scripts and branch sales tip sheets, not to mention their overtly sales based advertising practices makes a root and branch review necessary in order to win back the currency of trust from consumers and society.

The issue is what to replace these processes and practices with - what is the "to be" state of the future retail bank internal brand and, like you suggest, how do you go about engaging people to create this in order that it
is apt and sticks?

You mention traction - I sense that the issue of the future internal brand will become focal in a few months. Right now I suspect the banks are trying to play business as usual - but once they realize there is little onsumer appetite for this, then they may well see the need to change.

The issue is however that right now, unfortunately, those who seem to be suffering most, are the front line staff.

Thanks for the response.

Rob
www.engagingideas.co.uk

[Ian Buckingham]

A good post Rob as these poor folk are the tip of the ethical and performance iceberg that has resulted in the problems we all now face. I really felt for the front desk fol in my local NatWest yesterday when a hugely frustrated middle aged, middle class lady had to resort to hammering out her frustration on the safety glass.
Banks have been stripping out process for years as director after director slashes and burns and then moves on before the impact on the supply chain can be fully realised. As traditional banking skills have given way to credit scoring and less time intensive processes, junior staff have increasingly become the public face of the brand, whereas in the past it was primarily the lending/relationship managers. In my view there needs to be a "back to basics" approach (witness what Santander are communicating in their adverts now). The hierarchy needs to be turned on its head and the managers given greater responsibility for customer relations again. I also believe that customers would be happy to pay for this service as the alternative is fairly distasteful. If anyone disagrees perhaps they can tell me the last time they had a satisfactory customer service experience with a bank. Frontline staff needed better training in communication skills, better reward and more effective support. Fewer competitors and government ownership in the UK market should, paradoxically, help to put the emphasis back on the medium term and calm down the slash and burn approach to management. But they will have to start spending a lot more on soft skills development!

[David Marklew]

Hi Rob, what a wonderful phrase - the front-line! The easy targets charged with implementing up selling plans, hitting referral targets, driving commission through sales of additional services, keeping hungry sales teams well fed with vulnerable leads, smiling, making eye contact, empathising, treating with respect, being engaged in everything they do. How about the banks empower them to do the right thing for the customer rather than seeing them as an opportunity to hit a target or drive commission. How about rewarding the front-line! for doing the right thing for the customer, their team and the long term health of their business.


David

[Rob Fox]

Hi David and Ian,

I could not agree more - and with the bank brands effectively redundant then there is a need to focus, and reward the right skills. I sense what is required is a bolstering of staff, consumer and societies confidence. I wonder what the roots of confidence are and how these are inter-related to the right things and soft skills?

Keep well.

R
www.engagingideas.co.uk