Choice and Consequence: The Internet and call center are the branch's remote and, at times, impersonal second cousins, but make them second fiddle at your peril. A customer's descent into automation hell can be the difference between a better relationship and a lost one.

Publication: Bank Technology News

Publication Date: 01-MAR-05

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Like a child that quickly grows older, the Internet can no longer be considered a youngster when it comes to its place as a service channel. In less than a decade, banks have gone from Web pages that were little more than one-dimensional promotional tools to full-fledged self-service channels.

On-line banking, coupled with other tech-driven service channels such as call centers equipped with interactive voice response systems, now make up half or even a majority of a bank's interaction with consumers, depending on who is asked. Glitches in these self-service channels have also become the quickest way to lose a customer for reasons other than relocation or dissatisfaction with specific product offerings. "We've been finding a strong correlation between on-line banking service and retention. A good site equals not only higher retention, but higher profitability," says George Tubin, senior analyst at TowerGroup, who says the pendulum can swing just as quickly the other way if the service is bad. "Through every channel, it's important to provide the best experience possible. It only takes one bad experience."

The maturation of electronic channels has brought many of the long-promised advancements in banking to fruition, with most services available either on-line, via automated call center or an integrated combination of channels. When it works, automated service 24 hours a day, seven days a week frees customers from the time and hassle of traveling to a branch, and can offer substantial savings for the institution.

Since automated call centers and Web sites have become the front lines of service, the risk goes far...

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