Some Days You Eat The Bear – Part 2
More Adventures in Retail Banking
Back in the teller cage, Patrick was determined to earn his way back to being a loan officer. One thing for sure; he wasn’t turning down any loans unless there was a serious deal breaker in the mix.
It was a slow Tuesday when Joe Brock walked up to Patrick.
“Hey. I sure am glad you folks opened up a new branch out this way,” Joe said. “It’s closer to me.”
“Glad it’s working out,” Patrick said. “How can I help today?”
“Oh, just wanted to drop a little something in my checking account.” He handed Patrick a deposit slip and a check for several thousand dollars. Patrick was impressed.
Patrick diligently put the information into the system. The bank’s new cross-sell / marketing system kicks in and a prescreen-of-one determines whether Brock is pre-approved for any new products by accessing his credit report. Sure enough, he’s pre-approved for an unsecured line-of-credit.
“Mr. Brock, here’s your receipt. I don’t mean to be trying to sell you anything you don’t want, but do you know you are eligible for a line-of-credit to use any way you want?”
Brock at first looked a little surprised, but then he smiled. “Sure, if you can do that. Don’t have a use for it right now, but a line-of-credit is always good.” The two completed the paperwork and Brock leaves feeling even better about his new bank branch. Patrick is feeling he is back in the game and on his way back to loan officer.
The next day, however, Patrick got a hard call from Brock. “What kind of bait and switch are you trying to pull?” he said. Actually he yelled.
“Wait. Wait. Wait,” Patrick broke in. “What are you talking about?”
“Yesterday the loan had one interest rate and today some Joe Blow calls and says it’s a hell of a lot higher. What’s going on?”
“Let me find out and call you back,” Patrick said.
“You do that, sport,” Brock said and slammed the phone down.
Patrick calls lending and finds out that Brock also has several small business loans and based on the overall risk of these loans, with liens on his house, making an additional unsecured loan on the account is a bad decision.
“Then why did the system kick him up as pre-approved?”
“My guess? Probably you just keyed him as a Joe Brock, consumer, not Joseph the over-leveraged small business owner. Happens all the time.”
“How am I supposed to know that?” Joe pleaded. “Can’t we make an exception?”
“Sure, if you get Bert to sign off.”
Patrick hung up and began thinking of what he could tell Bert, when the branch manager’s secretary came up to his window.
“Bert wants to see you,” she said. “And he’s not happy.”
As we discussed in part 1 of this story, while CRM applications appear to create operational efficiencies, they lack the analytics needed to decide on what the “next-best-action” is for the customer or providing an actionable guide for the user. In these days of customers jumping from bank to bank systems need to be – if not bullet and idiot proof – smart enough to give the Patrick’s of the world a fighting chance to succeed. 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. If you are interested in learning more about Equifax technologies and analytical services, please sign up for our monthly newsletter. It summarizes the new articles in our blog.
This post was contributed by: Lee Grice.
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