Supporting Customers and Boosting Confidence

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Question:

What are some steps community banks should take to provide support and boost confidence among their customers? Some of the things we've seen over the past few months include creating funds for the victims and families affected by the tragedy, as well as matching donations raised in their communities.

Answer:

Answer by John M. Floyd:
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The worst thing community bankers can do right now is tighten up credit limits, especially for long term customers who have viable businesses that have been affected by recent events. We talked about the travel industry in Florida. There may be some resorts, hotels, travel agencies or other businesses in the hospitality industry that are really feeling the crunch right now. The last thing small business owners need is for their bankers to tighten up their credit lines and not be willing to work with them. It may spell disaster for both the businesses and the banks.

I'll sum it up this way. If bankers will continue to focus on their mission -- taking good care of their customers and being actively involved in their communities -- they'll come through this difficult time and be stronger for their efforts. It's when they take their eye off the ball -- they become fearful, or get sidetracked by events they can't control -- they'll get into trouble. They should focus on their customers and, better yet, take the steps necessary to best serve those customers.

Answer:

Answer by Gayle Sherry:

One of my clients recently told me they are providing weekly luncheons for their customers, just to express their appreciation for their business. Others are offering quarterly luncheons, receptions, etc. for the sole purpose of saying "thanks" to customers.

I think it's important to remember that when customers (or employees,) don't have information, they may panic and "make up the bad news." To reassure our customers and employees, we can be honest, open and direct - about our business, where we see the bank headed, and our efforts to support the community that we serve.

Answer:

Answer by Richard Insley:

Be sure all of your customer contact staff (including back office types who answer the phone) are well-trained about FDIC insurance. If it's been a while since you did a round of training, do it again. Be sure your staff can explain coverage accurately and can refer uneasy customers to the FDIC website for first-hand information. Also, encourage your staff to learn how to use EDIE. If they've run their own deposit relationship through EDIE, they'll be able to recommend it to customers as well.

First published on BankersOnline.com 4/01/02