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CH 8] Business 101 8-13

Figure 8.3 ATM machine Figure 8.4 Emphasizing Service Quality with
Guarantee Programs

ATM-Grocery Store

Source: Reprinted with the permission of NCNB Corporation.
ATM Drive-up

and consumer loans. The American Banker conducted a customer survey and found
that the primary reason people switch banks is because of poor service, especially as it
related to account errors. To prevent customers from switching, a number of banks
have instituted a competitive tactic, the warranty. National Westminster Bank USA
advertised that if a customer who applies by phone for a personal or car loan and did
not get an answer by the end of the next business day, the bank would pay them $50.
The advertisement from North Carolina's NCNB in Figure 8.4 shows the bank will
give a $10 apology for any mistake on a depositors' accounts.
First National Bank of Chicago tied its managerial bonuses to service quality
related. Rosemarie B. Greco, president of Philadelphia's Fidelity Bank, and a former
nun, sent 25 of her managers to visit companies known for excellent customer service, 8
such as American Express, and L. L. Bean. This resulted in complaint-handling
systems being consolidated, and management becoming more personally involved with
customer problems. Eighty-seven percent of Fidelity's customers now report either
being satisfied or highly satisfied with service, compared with 57 percent.
Financial institutions are profit motivated enterprises and do not offer their services
at no-charge, rather their services are their products and they will charge for their
product to assure profitability. Citizens Bank of the South charges no fees on checks A bank is not a benevolent
written if the daily balance of the account is $500 or more. When the account balance society, or charity. A bank
falls below their $500 minimum, then the bank levies its customer with a $7.00 per is a business that provides
month fee plus $0.20 for each check written. Although Bank of America in Los a service, and as such,
Angeles charges no fees for depositors who use the bank's own ATM, a $1 charge is must make a profit for its
levied on depositors who use other ATMs in the bank's network. These fees are shareholders (owners) and
designed to generate additional revenue for banks and to charge the depositors for the to be able to pay the costs
for its presence; rent,
services rendered. utilities, salaries and taxes.
Customers, of course, want the bank services at no additional charge, and may even
resent bank fees. So, banks have begun offering package deals called bundled accounts
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