Gary Hamel (author and innovation architect at the MIX) talks with Greg Sutherland, the executive general manager of strategy and innovation at National Australia Bank, about really becoming customer-focused, working from their needs, backwards -- challenging a lot of the traditional beliefs in banking. Gary starts the conversation regarding an ad campaign the bank did as a letter in the newspapers; a kind of a "Dear John" letter that said, "I'm sorry, it's over."
The banking industry does not rate high in reputation indexes for being customer-focused, addressing their needs, and really serving the customer, says Sutherland. “Although people trust them, at one level, in terms of the safety and stability.” But banks hold the power in the customer’s eyes.
As the team members around the innovation agenda at National Australia Bank began their work, they realized they had all the insight they needed because customers were screaming at them and it's something they had been staring at for five years. Much like other large companies, they too had been staring at the same customer research for years, and sort of not acting on what's actually obvious.
The number one complaint was about the bank's fees, and 80 percent of those complaints were about the overdraft fee. Customers never thought they bought that service, so the fee was an unwelcome surprise. So National Australia Bank decided to drop that overdraft fee. It was like a lightning rod for the whole organization. It said, All the stuff we've been looking at, that we've justified as an industry... if the customer doesn't like it, then we've got to change it.
Thank you Linda for bring up one of my favorite topics - Banking. No I really mean it, over the last few years nothing has awaken my curiosity more than this industry. It is really nice to see at least one bank listening to their customers even though it took them 5-10 yrs to react to the obvious. Imagine how the banking industry could regain some lost trust if they would only listen to their customers ? The issues are pretty simple so it shouldn't take long to take action(s).
I notice this is only happens in reality in Australia, where I must give credit - they are trying to do some very innovative things that banks here in the U.S.cannot - due to their reputation. Anytime I hear of innovative thinking from within the Banking Industry it comes from the Land Down Under.
And this is where I want to thank Sara for her link, absolutely fantastic ! Underscores exactly the situation we face here in the U.S. Goldman Sacks !
Yesterday, an executive director at Goldman Sachs quit his job and wrote a scathing review of Goldman Sachs' culture and priorities in an op-ed in the New York Times: http://www.nytimes.com/2012/03/15/business/a-public-exit-from-goldman-sachs-hits-a-wounded-wall-street.html?pagewanted=2&_r=1&hp According to him Goldman Sachs doesn't even give the slightest thought to customer satisfaction. In fact they call the customers "muppets." It's nice to see that some financial services organization -Australia National Bank-- is acting upon customer needs and requests.
This is enlightening and oh-so-true. I can't imagine the banks over this part of the world (I'm based in Asia, btw) to change their policies just because some customers are complaining about it. Good for National Australia Bank's clients, though!
So the data has been sitting around for years but it took 5 years for the Australian bank to drop the overdraft fees that their customers didn't know they ordered. Sweet. At least if the banks are going to serve up bad beer how about throwing in some salty snacks.
The blogs and comments posted on EnterpriseEfficiency.com do not reflect the views of TechWeb, EnterpriseEfficiency.com, or its sponsors. EnterpriseEfficiency.com, TechWeb, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
4/29/2014 - Join Dell and Intel for an interactive discussion about implementing, refining and improving your virtual environment. Specifically we’ll discuss pain points virtualization can solve and those that it can create and how to prevent them.
Enterprise Efficiency is looking for engaged readers to moderate the message boards on this site. Engage in high-IQ conversations with IT industry leaders; earn kudos and perks. Interested? E-mail: firstname.lastname@example.org
Dell's Efficiency Modeling Tool The major problem facing the CIO is how to measure the effectiveness of the IT department. Learn how Dell’s Efficiency Modeling Tool gives the CIO two clear, powerful numbers: Efficiency Quotient and Impact Quotient. These numbers can be transforma¬tive not only to the department, but to the entire enterprise. Read the full report
Now that TGen has broken new ground in genomic research by using Dell's storage, cloud, and high-performance computing solutions, the company discusses what will come next for it and for personalized medicine.
The Translational Genomics Research Institute wanted to save lives, but its efforts were hobbled by immense computing challenges related to collecting, processing, sharing, and storing enormous amounts of data.
Office and personal productivity tools come in a first-class and coach flavor set, but what makes the difference is primarily little things that most users won't encounter. What's the big issue in using something other than Office, and can you get around it?
We really don't want an "Internet of Everything" but even building an Internet of Everythinguseful means setting some ground rules to insure there's value in the process and that costs and risks are minimized.
Google's Chrome OS has a lot of potential value and a lot of recent press, but it still needs something to make it more than a thin client. It needs cloud integration, it needs extended APIs via web services, and it needs to suck it up and support a hard drive.
On a recent African trip I saw examples of the value of the cloud in developing nations, for educational and community development programs. We could build on this, but not only in developing economies, because these same programs are often under-supported even in first-world countries.
VMware's debate with Cisco on SDN might finally create a fusion between an SDN view that's all about software and another that's all about network equipment. That would be good for every enterprise considering the cloud and SDN.
Wearing a bulky, oversized watch is good training for the next phase in wristwatches: the Internet-enabled, connected watch. Why the smartphone-tethered connected watch makes sense, plus Ivan demos an entirely new concept for the "smart watch."
Cloud storage costs are determined primarily by the rate at which files are changed and the possibility of concurrent access/update. If you can structure your storage use to optimize these factors you can cut costs, perhaps to zero.
The Internet has evolved into a machine for drumming up a chorus of "Happy Birthday" messages, from family, friends, friends of friends who you added on Facebook, random people that you circled on G+, and increasingly, automated bots. Enough already.