Satisfying Customers’ Needs—Banking Is a Service Business

While banks play a critical role in financial intermediation and in the creation of money, banking’s primary focus is the satisfaction of customers’ financial needs. Banking services satisfy financial needs such as:

· Earning a return on idle funds

· Borrowing money to achieve goals

· Preventing losses

· Managing money conveniently and efficiently

To be successful, banking must meet the financial needs of customers. But most customers need assistance to wade through the bewildering array of banking products and services. Many customers are not aware of all the different services available and may not have a good understanding of whether a particular service would be useful to them. Often customers are overwhelmed at the vast array of products and services. Banking professionals are the link between these products, services, and customers.

Bankers act as interpreters between the banking products and services and help customers evaluate their financial needs. Bankers suggest services that meet those needs. An important part of the job of a banker is to promote banking products to customers in a sales consultant capacity, not as a cashier. In other words, bankers help customers select the right services for them rather than simply ringing up the sale.

Banking went through revolutionary changes when computers were introduced many years ago. Some people would argue that technology is reducing the human element in banking (‘‘high tech’’ versus ‘‘high touch’’). While this is true, technology is also enriching the human interaction in banking. Technology reduces boring tasks or processing of simple transactions that aren’t ‘‘high touch’’ anyway. What technology is doing for the high-touch side of banking is making sure that interactions between customers and banking professionals are valuable for both sides.

Customers can use automated systems such as ATMs, online banking, wireless access, and telephone banking programs to process transactions quickly and get basic information. When their needs extend beyond these mechanical aspects of banking, the banking professional is there to help with the real questions, such as which checking account would be lowest cost for the customer or which loan plan would best meet the customer’s needs. Helping customers with these needs is also more rewarding and satisfying for most banking professionals.

Over the years, various banking products have been developed as an outgrowth of the bank’s role in financial intermediation. Many years ago, few types of banking products and services existed—primarily checking accounts and commercial loans provided to businesses and consumers.

Over time, however, the number and variety of products and services have increased dramatically.