Added-value services help banks keep customers

I. Christianto, Contributor, Jakarta

People have different reasons for choosing a bank. Some might choose a certain bank because of its strategic location, while others may pick a bank that has an extensive ATM network or an Internet banking service.

For Nancy, an executive of a car distributor, she chose a bank where she could pay her telephone, electricity and credit card bills through the bank's Internet banking service.

"It's so convenient if people can pay their bills by phone, the ATM or the Internet," she said.

Meanwhile Agustine, an executive for an international company in Tanah Abang, Central Jakarta, said it was very common that many Indonesians had their accounts at two or more banks, including a branch of a foreign bank.

"I chose a small bank near my home just because it offers a safety deposit box," she said.

She added that she was also a customer of two other banks because of their ATM services. "It's very helpful to have a bank with easy-to-find ATMs. I hope I can use the ATM for transferring money to the accounts of different banks free of charge soon," she said.

Both Nancy and Agustine agree that the names of banks and their management also play an important role in their selection of a bank.

"BCA, for instance, is a leading bank, I think. And it proved to be solid in recent years after the financial crisis. I suppose many Indonesians trust it," said Nancy.

The reputation and services of the bank's staff are also important for Augustine when choosing a bank. She said that there were some banks that were very arrogant and did not pay any attention to customers who were not part of their targeted market.

"I think banks should never do that," she said.

As a matter of fact, local banks are involved in a tight competition to win customers or retain existing ones. Big names are no longer enough to secure a share of the market.

Besides offering large cash prizes, most local banks also promise adequate ATM services to lure customers. Most banks also offer phone banking services to allow their customers to check their accounts by their telephone at home. Some other banks such as Bank Central Asia (BCA), Bank Mandiri and Bank Negara Indonesia (BNI) have even launched mobile banking.

The increase of activity at banking malls creates more problems for customers, with long queues that are an inconvenience for everyone. Opening new branches is expensive and not a solution in the long run. An electronic delivery channel, such as phone banking, is one way of getting rid of your problems.

Phone banking is a fast, simple, round-the-clock service and is cheaper than opening branches. It becomes a tool for satisfying customers. Phone banking is also a good service for both maintaining existing clientele as well as attracting new customers.

With the phone banking facility, a customer is able to transfer funds, check the balance of their accounts and make bill payments. Other featured services include making stop payment requests, reporting a lost ATM card or even handling complaints.

In this fast-paced world, smart ATM, phone banking and Internet banking services are a must for banks, and amounts to caring about customers who may be reluctant to standing in the conventional lines for a teller.

Time has become a more valuable commodity and phone banking enables customers to conduct virtually the entire spectrum of banking transactions without traveling to and from the bank. Reducing the transactions, cutting down the time spent at banking malls and of course saving money, makes for satisfied customers.

However, banks still have to deploy a qualified customer service staff with good knowledge. Several banks have also launched programs to retain customers and attract new ones. The program usually offers grand prizes, including overseas vacations, cars, home audio/video systems, cash and so on. Some banks have also introduced new savings accounts that offer both high interest rates and attractive lottery rewards to customers. Some banks have admitted that these programs have been successful in attracting new customers and maintaining existing ones.