Added-value services help banks keep customers

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.