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Weekly UpdatesAt many financial institutions, personal banking is synonymous with "relationship" banking and going the "extra mile" to meet customers' needs. Personal banking runs the gamut of non-business banking, from consumer checking and savings accounts to home and auto loans.
Personal banking often requires a creative solution--like the time when a First National Bank Alaska customer ran out of cash while vacationing and called the bank for help. The funds couldn't be wired through normal channels because it would have taken too long. So the bank's employees withdrew money from the customer's account (with his permission, of course) and wired the funds from a nearby Western Union location. And he received the money in about an hour.
"It's our goal to make sure that if a customer needs something and we can help, we're going to do it for him," said Casey Neill, an assistant vice president in the deposit services department. "It may sound corny, but we take joy in helping all our customers. And because we do, it shows, and I think that gives us an advantage."
At First National, Neill added, a customer isn't just a number. Every individual represents a valued relationship that is nurtured from day one. It starts with the first interaction, followed by thank-you cards, phone calls and even personal visits. Employees check in with customers to make sure they received their checks, debit cards or personal identification numbers--or to simply inquire if they're satisfied with the bank's products and services.
"We believe we have to have a good balance of service and sale," Neill said. If we don't, the customers will go away, and we really want to make sure we keep the customers that we have."
PERSONALIZED APPROACH TO MEETING FINANCIAL NEEDS
When it comes to personal banking, there's been a significant shift in customer behavior and attitudes, said Gary Koch, KeyBank senior vice president and district retail leader. Customers want multiple channels on demand, along with a higher level of service and advice. Consequently, many banks are taking a more personalized approach to ensure the satisfaction of personal-banking customers.
KeyBank, for example, practices a multi-step service policy that is designed to put customers first. The bank strives to build a relationship with customers, not just sell them products. "We listen to what their objectives and needs are ... and recommend a solution for how they can best do business with Key," Koch explained.
In Key's initial customer service efforts, "relationship managers" provide every new client with a free financial solutions questionnaire that gives them a current picture of their economic situation. The "on-boarding" process also includes at least eight follow-ups within the first quarter through mail, e-mail or phone, depending on the customer's preference.
Relationship managers also conduct annual assessments to identify changes that may be happening with customers--retirement, kids going to college, etc.--and design a solution to meet these needs. "We want to have a relationship, to become their trusted advisor and provide value-added service, so our clients become advocates," Koch said.
Wells Fargo Alaska has a longstanding tradition of focusing on customers. A number of years ago, the bank adopted the term "personal banker" to describe its personalized approach to providing banking services. "We are here to serve all of our customers' financial needs," said Marketing Vice President Elaine Junge. "We do that best when we're meeting with them and understanding what their needs are."
Personal bankers at Wells Fargo receive specialized training to help them effectively identify and meet customers' needs. This includes two-day training sessions, half-day classes and teleconference training to learn about new products and sharpen their skills. Employees also have access to ongoing coaching from their management team.
Wells Fargo also focuses on providing education for its consumer and business customers. The bank promotes financial literacy through its main Web site and directly at www.handson banking.com. The free online resource covers a variety of topics, including state-specific money management basics for elementary, high school and adult users. For adults there are sections on managing credit, understanding your credit scores, buying a home, and starting and managing a small business.
"What distinguishes us is our ability to be able to provide value-added service to our customers in terms of the advice and knowledge that we can give," said Junge.
CUSTOMER-FRIENDLY PRODUCTS AND SERVICES
Alaska banks offer a wide variety of products and services to support their customer-focused style of banking. Wells Fargo, for instance, offers a packaged checking account product that gives customers the option to add online banking, a debit card and a savings account.
Wells Fargo also is extending checking account services to meet the needs of more customers. In March, the bank rolled out Wells Fargo Opportunity Checking to provide privileges to eligible customers who would have been declined in the past due to poor credit. This account offers a number of value-added, time-savings features, such as unlimited checking, free online banking with bill pay and overdraft protection.
The account does come with a few restrictions, such as it doesn't offer a debit card. However, customers can get an ATM card. And the monthly service fee is just $10, with a $2 discount if customers have a qualified direct deposit like a payroll of $100 or more.
"We have seen some good responses to it," Junge said. "We see a lot of opportunity with it in that we can reach out to serve people who may have been non-banking customers prior to this."
Another innovative way that Wells Fargo is reaching out to more potential customers is through membership banking accounts. With these, the bank works with businesses to offer Premium Membership Checking accounts to their employees. The accounts are based on the bank's relationship with each business and are free to employees.
Wells Fargo also recently rolled out a Smart Home Equity Account designed to give customers flexible borrowing power. It's a fixed-rate loan with low monthly payments that are interest-only. At the same time, it offers a line of credit for terms of 3, 5 or 7 years. Customers can reuse their available credit without having to reapply, and they may be able to receive tax deductions for their interest.
"We really feel that this is something that individuals can benefit from, as interest rates are going up," Junge said.
Wells Fargo also offers a variety of services to meet customers' needs. In November, the bank introduced online customer-to-customer transfers. Customers can send and receive funds between the checking and savings accounts of other Wells Fargo customers in "real" time and at no charge. Also in November, the bank began offering an online My Spending Report, which summarizes checking account, debit card, credit card and bill-pay transactions in one place.
"We're continually looking at our products and services ... and searching for ways to ensure we're meeting our customers' needs truly in a way that adds value to them," Junge said.
As part of its value-added services, KeyBank is streamlining product sets. The goal is to make them easier and less confusing for customers and the sales force to understand. In keeping with what seems to be a national trend, the bank will be reducing eight to 10 checking products into four, Koch said. The bank also offers relationship pricing, in which the more products and services customers carry the better pricing they receive.
On the deposit side, the bank recently came out with a Key Premier Money Market Saving Account in November. This account offers a market rate for balances starting at $25,000, with higher earnings available for balances of $50,000 and $100,000. The new money market account, which allows customers to open a Key Privilege Account for free, has been quite successful. This month the bank extended the product to balances below $25,000, Koch said.
In response to consumer demand, First National recently rolled out a Health Savings Account. A HSA is an increasingly popular alternative for customers who belong to a High-Deductible Health Plan (HDHP). Sometimes referred to as a "catastrophic" health insurance plan, a HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses, but generally offers coverage after that. To qualify to open a HSA, your HDHP minimum deductible must be at least $1,000 for individual coverage or $2,000 for family coverage. The annual out-of-pocket--including deductibles and co-pays--can't exceed $5,100 for an individual coverage or $10,200 for family coverage.
A HDHP is a cheaper alternative for employers than standard health care coverage. It also offers attractive benefits to employees with HSA accounts. Customers don't lose unused funds, so they can pay for current qualified health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
First National's HSA is actually a checking account that pays a competitive rate of interest. Account fees are $3 per month for balances under $1,000 and $1 for balances higher than $1,000, plus a 20-cent-per-check fee--but no charge for debit card use. "We decided to make it a checking account, so the customer can have a debit card and use it to pay the doctor," said Cindi Buzitis, a vice president in the bank operations support department.
MINIMIZING FRAUD AND IDENTITY THEFT
As part of their customer relations' efforts, Alaska banks are making it a priority to teach customers about identity theft. Identity theft is the biggest fraud type issue that's going around, according to a recent report by the Federal Trade Commission. Fortunately, Alaska ranks 41st among states for credit card, bank, phone and utility fraud; Arizona ranked No. 1 and South Dakota was at No. 50.
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