New Approach - Back To The Basics

Manhattan Savings in New York has 27 branches, only three automatic teller machines, is open from 8 a.m. to 7 p.m. Monday through Friday and 10 a.m. to 3 p.m. on Saturday, has express windows for cashing social security checks, and staffs 25 tellers in some branches during peak hours. The lines move "amazingly fast, thanks to an army of tellers", according to a July 31st report in the American Banker.

On some days you might find a local artist has an exhibit of paintings on display, or there might be a piano in the lobby with a pianist performing show tunes.

Using a combination of good old fashioned customer service, tending to business built locally, and marketing to older customers, Manhattan has managed to accumulate a loyal customer base. These methods have paid off for them as is revealed in their first quarter return on assets of 1.15 percent. (This compares very favorably to the .27 percent average for similar institutions.)

Fancy technology is not part of the way of doing business here. As one officer put it, they live by a simple policy: "If you don't need it, don't buy it." Which may be one explanation of why an institution of over $5 billion in assets has only three ATMs. They do very well with live tellers.

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 7, 8/91