Improvement in systems and processes of a bank must be customer oriented

Ateneo Professor on Entrepreneurship

Rizal  Philippines |  December 12, 2013

We were visited today by a Cluster Head of a Universal Bank in an apparent response to our withdrawal of substantial amount in their branch in this town.  This was precipitated by several factors:

1.  Their branch in another town 30 days ago bounced our check payable to hardware because of a difficulty in signature.  They said their head office returned the check.  Despite that we had sufficient balance and one of the signatures was Ok.  We also furnished them sufficient documents about the second signatories.  As a result of the bounced check, the supplier was naturally angry and would not take our orders any more with PO or on credit.  Furthermore, we lost our credibility as a result.  And the bank was charging us P2,000 penalty for the returned check.  We wrote a letter 4 days afterwards complaining about the event and seeking clarification.  We did not get any reply.   Today, 30 days after, we got the visit.  (Just because we transferred substantial amount to another Universal Bank)

The cluster head explained to us that it is all automated system and with the head office controlling the checking account transaction, the branch is helpless to prevent this bouncing of check for technical reason (not lack of funds) if the system is not over ridden. What happenned to account management?  Well there are supposed to be persons taking charge of certain accounts.  Why did this happen to us?  Maybe we are a jolog account (we are in the low 8 digit deposits in their entire network)

Is this a case of misdirected efficiency and control?   Control is strengthened, but the system is anti customer.  I have known several people who have migrated from their branch because of this difficulty and absence of marketing and customer service.  Before, their bank was tops in this department

2.  In terms of relationship, we have been banking with their bank for more than 30 years (36 years) and this office has been invited to the home of their chairman, is on first name basis with their senior officer.  Now the young ones are in charge, new officers without sense of history, and relationship are running the affairs.  Is it correct to say that after all the saying that the "first generation creates the enterprise, the second generation spends it....the third generation destroy it to be true?

Does it have to be that way?

Efficiency must prevail over customer service?

Policy banking is the best?

New ideas must prevail?

New banking practices are tops?