Some Days You Eat The Bear – Part 1
Adventures in Retail Banking
Our boy Patrick was psyched about getting a shot as a loan officer for the first time.
He was doing pretty well, or at least he thought so, until Mrs. Janus walked in.
After the usual pleasantries, she got right to the point. “I’d like to borrow $11,000 to replace my kitchen countertops,” she said.
“That’s what we’re here for,” Patrick said. “Let me take a look.” He took down her basic information and pulled up the credit report. “Not much there,” Patrick thinks to himself. “Better not.”
He puts on his best smile and delivers the bad news. “I’m really sorry Mrs. Janus, but we’re going to have to decline.”
“Decline! What do you mean, decline?”
“I’m afraid your credit score won’t permit me to make the loan.”
Patrick had read of people getting so angry steam came out of their ears, but until this moment he had considered that just a figure of speech. He tried to quench the flames, “I can offer you a free checking account….”
He didn’t get to finish, his comment seemed to have had more the effect of gasoline instead of the cooling water he intended. Mrs. Janus’ face turned an unhealthy shade of red and she glared, speechless at him before she spun and headed as straight for the branch manager’s office as desks would permit.
Though he could not hear what was being said, he could see that his boss was not having a good time. Mrs. Janus was standing, windmilling her arms and apparently shouting as the glass walls seemed to be flexing. Patrick began to get a queasy feeling that he had done something evil in his Easter basket.
As Mrs. Janus stormed out, she fired a look at Patrick that made him want to duck. In fact, he did flinch, but then he saw this manager walking his way. Bert was rubbing the bridge of his nose and grimacing. Even Patrick had figured out things were not good.
Bert sat down before Patrick’s desk and motioned him down as well. “Did you realize this bank holds the mortgage on the Janus’ family home?” Bert said quietly. “Did you know her family has a $250,000 CD that matures this year? Did you know that Mr. Janus’ loan on his Mercedes is held by this bank?” Bert waited.
“Uh….no,” Patrick said.
“Why didn’t you know?”
“I’m new to this branch?”
Bert shook his head.
“I didn’t check far enough?” Patrick was now remembering some of the rest of his CRM training.
“I’m going back to the teller cage, aren’t I?”
Bert nodded again.
CRM applications are good at providing a single view of the customer but they overwhelm the user with facts and details, some meaningful, some superfluous. Without the right systems, finding useful information is not always achievable in the short window when a service interaction occurs. CRM applications do not have the functionality to determine what the “next best action” for the customer is; CRM applications used in conjunction with analytics do.
In short, future success depends on banks learning how to better manage their existing data, technologies and customer experience… as Patrick failed to do.
Many of our customers are undertaking banking system technology transformation initiatives, including core banking, loan origination, application processing, and on-line banking systems. These systems must co-exist in the banking technology eco-system, and increasingly must integrate to help banks achieve their new imperatives.
Equifax is deeply involved with our customers in managing these changes. If you want to talk to an Equifax specialist about managed services, please send us an e-mail.
This post was contributed by: Lee Grice.
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