Personal Bankers
Consumer behaviors are making it more challenging for banks to increase their revenues. This is due to the rapid growth of smartphone technology in the banking sector that enables customers to make deposits and other transactions using their mobile phones. Customers can now complete their transactions, manage their accounts, and perform banking research using a mobile device. Most banks have mobile banking infrastructure in place that includes apps to locate ATM’s and branches, allow a customer to deposit a check into their bank account from their smartphone, and bill payment. Since banking customers are not visiting their branch as often, especially millennials, it’s no wonder when a consumer walks through their local branch, the banker or teller is primed and ready to “cross-sell” you a new product or service.
Personal bankers can honestly help their customers, if assistance is needed. They are very knowledgeable about the products and services being offered, and can answer many questions about your account. They can help you to set up bill pay, set up an savings account for your child, apply for a new credit card with a great promo, or suggest ways to earn interest on some cash sitting in your checking account. These occasions are in sharp contrast to the time when you do not need any new services and you will only waste your time by talking with your banker.
Everyone wants to believe that the help they are receiving from a personal banker is genuinely given. Don’t be mislead by a bank’s customer service feel since they are in the business to make money. Next up: A personal banker comes clean.
Personal Bankers Work The Lobby
Get ready for the cross sell when a personal banker approaches you as you walk through the door. Banking centers are becoming more like retail stores. Personal bankers have monthly sales targets, and most of their earnings rely heavily on commissions. As one personal banker explained in his blog, the personal bankers and tellers meet every morning before the branch opens. They make up a list of small talk topics to discuss with a customers such as “I like your new shoes,” “Where did you get that jacket,” “What are doing this weekend,” “Have you tried this new restaurant around the corner,” Are you going back to work or are you finished for the day.” Does this sound familiar?
Personal bankers are charged with greeting customers as they walk through the door. They’ll try to pull you out of the teller line and then ask what has brought you into the bank today. If you tell them you want to make a deposit, the personal banker will offer to help as they take you over to their desk. They’ll ask to get you some coffee or water so you will feel obligated to stay for a while. As the banker makes your deposit, they can access your full banking profile and find ways to sell you something. Next up: Get ready for the cross-sell and what a former personal banker says.
Personal Banker Account Review
After getting you to sit down in their side chair, bankers will validate all your contact information to make sure its up to date. After that, they will dig deep into your account and ask questions to better understand your financial objectives. Personal bankers and tellers always read the banking information on the check you are depositing. For example, if you are paying your mortgage from an account other than the one you are making a payment to, the personal banker may ask if you have considered moving your checking account to their branch. Making a credit card payment at a branch triggers many alerts from setting up a new no fee credit card, a new card with reward points, or a card with no fee balance transfers. If you own a business, a personal banker will suggest that you open a small business account at their branch. If you have children, the banker will recommend that you open a savings account. If you have a child entering college, then sign them up for a credit card or overdraft protection. If you only have a checking account, the banker will recommend setting up a savings account.
Personal bankers and tellers earn commissions with Personal Value Credits (PVC), explained a former personal banker. Everything that is sold to a customer such as mortgages, credit cards, checking accounts, investments, and payroll services has a PVC value. For example, a checking account may be worth 20 credits. If the banker or teller makes enough credits at the end of month then they receive a commission. Did you ever notice that a bank teller may ask you to opening a new account? Their jobs depend on it. Banks often hire a mystery customer who finds out if a teller is cross-selling their banking services. How To avoid banking cross-selling: Go to an ATM or do mobile banking.
On the surface, there isn’t anything wrong when a personal banker offers their customers new products or services so long as high pressure sales tactics are not being used. When in doubt, tell your personal banker you will need to carefully consider it, but you don’t have the time right now to make a decision. Next up: The phone call.
Unsolicited Phone Calls
A personal banker’s duties include calling a list of customers in their branch area to see if they would be interested in coming in and discuss their bank’s latest products or promotions. Personal bankers enjoy face-to-face meetings. At times they may use an unrelated customer service angle to accomplish this, and then start cross-selling once you arrive at the branch. For example, a personal banker may call a customer who has a current mortgage and invite them to come in for a review. The underlying objective maybe to sell them a new checking or savings account. The banker used the mortgage as bait to get you in since most people will not ignore a call from their mortgage lender.
Don’t be misled by thinking that any call from your banker is urgent. You can easily set up text or email alerts for your checking or credit card accounts. If your banker invites you to come in, just ask why. Is it an issue that only can be resolved by you coming in, such as a document that requires your signature? If not, then you should not feel pressured to visit your branch. Next up: Meet the Tag-Team
The Banking Tag-Team
Your local branch team of managers, business bankers, investment bankers, personal bankers, and tellers are charged to work in tandem to persuade you to buy as many of their products as possible. For example, if a personal banker wants to speak to you about opening a savings account for your child, your account can be flagged so the next time you come in the teller can direct you to their office. Don’t feel pressured and politely say that you don’t have the time and leave. Next up: High fee services
Banking Products With High Fees or Commission
Banks sell financial investment products. Investments including mutual funds, annuities, and other products that are sold with upfront or back-end annual management fees, and commissions. The fees varies depending what type of investment is being purchasing and from whom. Don’t be forced into making a decision until you shop around and compare products. Often an investor can obtain discounts from brokerage firms such as Scottrade or E*TRADE. You may pay a higher fee through your bank.
Let your investment banker know that you will consider their investment advice, but you are still shopping around to see what other alternatives are available before making a decision. Don’t be coerced. Stand your ground.