I have set myself a big task – writing an article about the service banks provide without swearing or being too derogatory. I very rarely come across people who are very happy with the service their bank provides. Customer satisfaction level generally ranges from totally unhappy to 'barely satisfied'. It is a common and ongoing problem for both the banks and their customers. I think it is one of the main reasons that the mortgage broking industry has grown as fast as it has. So how can you get better service? I will discuss what customer relationship platforms lenders offer and how to work with them to get the best results.

What's the problem?
I think the biggest problem that all lenders struggle with is consistency of service. We can send a client to a lender and they might receive outstanding service. The following week we send another client to the same lender and they might experience appalling service.

In my opinion, the banks have never really had a strong customer service culture. It seems that each staff area of responsibility is so finely defined that as soon as a customer has an issue outside of that responsibility, then staff take the attitude that 'it's not their problem'. Put another way, staff don't always take ownership for the problem. Therefore, what you will find is that an issue might sit on someone's desk for too long, or your problem is just passed around the bank from department to department. This is probably why Westpac launched its "ask once" policy (which you may have seen advertised). Westpac's policy is that if you walk into a branch and ask someone a question, then they are charged with the responsibility of finding out the answer for you.

Another issue is training. Staff members just don't seem to have a strong understanding of their own products and procedures. Countless times we, as mortgage brokers, have had to correct lender staff about their own products procedures or policies. Maybe the staff have been adequately trained, but they just don't care – I'm not sure.

Another major source of problems is that lenders are often too inwardly focused. That is, when they think about how to process or assess a loan, they think about what will be easiest for them. They fail to think about how their actions or procedures will affect their customer's experience. A good example is where a credit manager might request additional supporting documentation from a client. This documentation probably only provides the lender with a tiny bit of extra comfort. That is, it really doesn't affect the overall assessment. However, requesting the extra documentation might frustrate the new customer and give them an impression that the lender is pedantic and difficult to deal with. They might even regret choosing to deal with the lender in the first place. Overall, the lender has done itself more harm than good.

By far, the biggest issue is human resources. Just like any industry, you get good and bad people. Some people have a very strong customer service mentality which is not necessary taught, it's innate. It's part of their personality.

The banks tend to have quite a high tolerance for poor or just ordinary service. I know through my own experience, that bank staff can go on delivering poor service and still receive a pay cheque each week. Maybe if banks were tougher on their staff, then the service culture would change.

The difference with senior management
The most amazing thing is that if you speak with senior management or CEO's within all banks, they have a very strong drive to improve the overall customer service they deliver (Ralph Norris from CBA is a case in point). They have a desire to deliver the very best service. They are extremely customer service focused. I am always impressed by their attitude.

This leads me to assume that there is a significant disconnection between management's mantra and the customer service attitude of the staff. Something is missing. However, you can use this knowledge to your advantage. More about this later.

What's on offer?
I have focused on the top five, because these lenders have the more advanced platforms. In addition, the top five lenders in Australia hold nearly 90 percent of mortgage market share. I will also focus on the service platforms offered to customers with a reasonable amount of lending (say more than $300,000), since property investors would generally fall into this category.

National Australia Bank (NAB)
The NAB offers a personal banking network. NAB has probably been committed to this service platform for longer than any other lender. All customers that have a mortgage will be assigned to a personal banker. Customers that earn in excess of $80,000 per year and have more than $200,000 of borrowings are assigned to senior personal bankers. The personal banker is your main contact with the bank. If you need to interact with your bank, then they should be your first point of call. They can assist with day-to-day banking needs, additional lending, referrals to a financial planner, etc.

This service platform works with varying degrees of success. There are two common complaints from customers. They either complain that their personal banker changes every six months and that it is too hard to establish a relationship, or they complain that their personal banker is too slow and never gets back to them. However, if clients are able to find a good and stable personal banker, they are generally very satisfied.

Commonwealth Bank of Australia (CBA)
CBA has two different relationship platforms. One for its direct customers, and one for the customers that have been introduced to the bank via a mortgage broker.

Direct customers are able to deal with Premium Banking, which offers a personal banking relationship similar to NAB.

Customers that are introduced by mortgage brokers have a different relationship platform. The customer's mortgage broker essentially acts like their relationship banker. The mortgage broker can refer the customer to different areas of the bank, including financial planning, credit cards, etc (in much the same way as a personal banker would). Obviously, the quality of the mortgage broker will determine the quality of your ongoing relationship with CBA.

Westpac
Westpac has a group called Priority Banking. This group is set up to assist customers that have more than $500,000 of borrowings (or deposits). Customers of PB have a dedicated relationship manager to assist with their banking and wealth creation needs. The staff in the PB group are generally more experienced bankers and can assist clients with all aspects of banking, including additional lending. Customers are normally referred to this group through their branch relationship. The group also independently contacts eligible customers, inviting them to deal directly with PB in the future. In addition, existing customers can also contact the PB group.

St George
St George doesn't have as an extensive national branch network as the Big 4 banks (although they do tend to have very strategically placed branches in the capital cities). It is for this reason that its relationship platform differs from the other lenders. St George offers customers Gold status if they have over $300,000 of borrowings with the bank.

The main benefit for Gold customers is that they are able to deal with the banks Gold call centre. This call centre is staffed by more experienced bankers (real people answer the phone – no automation) and customers enjoy shorter waiting times. They are able to escalate any issues/problems to management for quick resolutions. Gold customers are also entitled to a free gold credit card.

ANZ
Unlike most other banks, ANZ does not have a specific group that targets customers with a significant amount of borrowing (say over $500,000) but don't quite meet Private Banking eligibility. Customers are generally relationship managed by ANZ's branch staff or specialist mortgage managers (located in the branches and some are mobile). The branch staff are assessed and rewarded on the amount of lending relationships that they maintain (i.e. loan amounts managed by the branch) so you will generally find that the branch staff are very keen to look after you. It is therefore up to the Branch Manager and customer to build a personal relationship.

Private Banks
All of the top five lenders offer a private banking platform. Private Bank is aimed exclusively at high net worth individuals. Customers must have over $1 million in borrowings, $1 million of investable funds and/or income of over $250,000 per annum (normally the measurement is a combination of borrowings/investments and income). Becoming a private bank customer is generally by invitation.

Private bank believes that it offers a different level of service (in terms of quality and the type of products and services they can deliver). You will find that private bank will not discount interest rates or any fees beyond the standard discounts (i.e. no special deals). In our experience, private bank is just as susceptible to poor service as any other platform. Whilst they like to believe that they offer a 'premium' service, the actual experience of their customers differs dramatically. Once again, it depends on the person who you deal with.

To read page 2 please click here...

Essential information about the mortgage industry players and products – who's best to use, why and when, with many unknown loan structuring techniques to maximise the borrower’s flexibility and minimises risks and costs.

Become more knowledgeable about lending than your bank manager!

Click here now to purchase your copy today!










 Building Real Estate Wealth in Changing Property Markets by Michael Yardney.
 
Whether you are a beginner or an experienced property investor – this NEW DVD set will answer your questions about property investment in our current markets.
 
Click here for details