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Comment & Analysis - Banks and customer service

 ATMs reduce congestion in the banking hallsI needed to withdraw money from my bank’s Automated Teller Machine (ATM) before going to work at a time when the bank had not opened.

The branch closest to my home had two ATM cash dispensers on the premises. Both ATMs were out of order when I got there.

My ATM card was Visa-branded hence I could use it to withdraw money from any other bank whose cash dispenser was also Visa-branded. On reaching the other bank, I was shocked to discover that those ATMs were also not working.

I hired a taxi to yet another bank about five kilometres away, where luckily I withdrew some money but at the cost of a taxi fare and getting to work late.

This account of how ATM machines are unreliable is not new to many bank customers across the country. Lots of customers go through different frustrating experiences at the hands of Ghana's 27 banks and just keep mute.

In this article, I will examine some of the poor customer service issues of banks, then attempt providing some solutions to them.

Queues in banking halls

Banking hall queues and congestion are perhaps the commonest headache for customers. This is especially serious with the bigger banks which tend to have many customers.
"The system is down" is a phrase familiar with bank consumers who have to endure long waits in the banking halls because bank software has failed. At the end of the month when salaries are to be credited into customers accounts, some customers spend hours at the bank either withdrawing money, cashing or paying cheques.
Some ordinary bank customers (mostly low income earners and pensioners) do not want to pay ATM withdrawal charges. Others also are not technology-savvy, hence they prefer to walk into the branch to withdraw their salaries or perform other basic transactions. They all swell the numbers and the more the customers, the poorer the customer service they get.

Always Temperamental Machines (ATMs)
ATM cash dispensers were introduced to de-congest banking halls. Ineffective IT systems mean that ATM machines break down often or they are working but simply have no cash to dispend. This is a common occurrence and it is especially painful during holidays and weekends when banks are closed.

Some banks have few ATMs concentrated in city centres and as urbanisation has led towns and suburbs to expand, there has not been a corresponding increase in ATMs leading to pressure on the few ones available.

Customer Service Staff
When systems and information technology (IT) fail, the human factor is yet another challenge customers encounter. Many front-facing bank staff like tellers, account opening officers and relationship officers do not come across as helpful enough. Or they do not see themselves as being there to solve customer challenges.
There are instances where bank customer service staff have shown attitudes that typify their perceptions that their jobs are more prestigious than that of the customers they serve. This puts a lot of people off so some will prefer to keep their money at home rather than bank it. 

Bank Charges
Automated Teller Machine (ATM) charges, current account charges, high interest rates, hidden fees on bank loans and bank charges are contentious issues any bank customer you meet on the street will mention to you. 
Other issues like late clearing of cheques, high 'minimum' balances on accounts, poor complaint handling systems, and low interest on savings are other complaints levelled against financial institutions.

Who speaks for the customer?
In the midst of all these challenges who protects the interests of the bank customer?

According to the website of the Bank of Ghana (BOG), it’s Investigation and Consumer Reporting Office (ICRO) of the Banking Supervision department is responsible for protecting consumer rights.
One of the objectives of ICRO is to "serve as the watchdog body in the banking industry responsible for guaranteeing high quality services by banks".
A second objective I find interesting is "to protect the rights of customers and to serve as an advisory body for educating customers on their rights". Good on paper but sadly to say, ICRO has been sleeping at the till. 

The solutions
To decongest banking halls, banks should consider opening more agencies in different locations. Agencies are smaller versions of branches to keep pace with growth in towns and new suburbs. They are cheaper to open, smaller in size and not offer full banking services.
Another crowd reduction measure is to pursue the online distributive channel. Banks must introduce innovative applications to allow customer do basic transactions on their computers and mobile phones.
Some banks have them but they need to popularise them to increase uptake. Internet usage country-wide especially on mobile phones has shot up to about 10 per cent and 12 per cent so banks need to tap into this growing market.

In the banking halls itself, stand-alone computers could be erected to allow customers with computer knowledge to check balances, request cheque books and ATMs. This will be like a self-service system for customers. This self-system pertains in some banks in the UK.

Banks must invest heavily in IT infrastructure and systems. When this is done, there will be less breakdown of their ATM cash dispensers and hopefully phrases like "the system is down" will be abolished.
Banks should also invest in more off-site ATMs (ATMs outside bank premises like petrol stations, shopping centers and campuses). An example is where Ecobank have an ATM in front of the popular Busy Internet on the Ring Road.

One refreshing news is that the Ghana Interbank Payment and Settlement Systems (GHIPSS) has established a National Electronic Platform with an initial 14 banks that will enable customers to withdraw cash from any other bank ATM at the same fee.
That means a Barclays customer can use his ATM card to withdraw money from a Zenith bank ATM. This cross network system is what pertains in the UK and should be very helpful.

Lastly, I think the watchdog body ICRO should be strengthened to perform their watchdog role. They should have the means to investigate and heavily fine banks that offer poor customer service. The ICRO can learn from the Ministry of Communications which regulates the telecom sector.
After receiving complaints from customers about poor services, the ministry together with the NCA investigated and fined the mobile telecom operators heavily.
Similar monetary fines in the banking sector will make banks improve their services and have many supporters I believe.

I hope this article will make ICRO wake up!


Article by Anthony Sedzro



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