Keywords: importance of communication in banking
Developing a proper communication strategy in a bank sector must be built-in the framework of the clients expectations. In today's time, banking organizations are no more interested in growing better communication strategies that will serve their clients. It is because they enthusiastic about earning money, and maximizing on their profitability.
In view of this, the majority of this cooperation do not obtain their goals because they are unable to appeal to clients, and their normal customers try to escape from them, because of poor communication strategies.
INTRODUCTION:
During the current times, big organizations have a number of employees who perform various careers. The organizations use marketing staffs, to advertise their services, and seek for clients. To increase their efficiency in communication, financial institutions employ company spokesmen to communicate their strategies and achievements to the stakeholders, to the federal government also to their shareholders (Bell and John, 23).
Communication can be an important aspect that establishes the profitability and efficiency of any banking firm. A banking firm cannot attract and maintain a broad customer platform without initiating better and effective communication strategies. Despite these realities, banking organizations maintain poor communication strategies. One of the main reasons is their desire to increase profits, at the expense of customer satisfaction.
Trends in Communication Strategies:
In 1998, Citi Group merged with Travelers, which made them among the largest banking organizations on the globe. The company developed CEEMEA, its subsidiary which was in charge of looking for market in European countries, Africa and Asia. The business realized the value of communication in a small business set up. To boost their communication functions, the business made some reforms, and launched high end communication strategies like the integration of it in their business set up.
The results were immediate; the profitability of the business increased by more than 100%, and the business won numerous organization awards, for their introduction of information technology in the banking industry. The company were able to outperform established multinational business firm such as Barclays Lender, and Standard Chartered Lender. Other banking organizations used the example of CEEMEA, and introduced information technology in their bank operating system. Regarding CEEMEA, customers could gain access to their financial details, through the internet. A person had the ability of opening a new consideration with the bank group (Mohan, 20).
This made the organization to track record an approximate variety of two million bank accounts. This is actually the vitality of enacting proper communication stations in the bank industry. This is report outlining the consequences of poor communication strategies in the bank sector. This report identifies the many needs of customers, and the way the banking establishment can gratify these needs. This survey recognizes the strategies of competing banking organizations in relation to establishing proper communication programs, and therefore creating client satisfaction. It offers recommendations on better strategies, the business organization ought to implement.
Effects of poor communication strategies and customers' anticipations:
Banking cooperation's will eventually lose customers and neglect to hold on to their existing ones if there communication strategies in inefficient and poor. This will most likely lead to reduced profitability, emanating from the reduced amount of their sales revenue. This will affect the objectivity of the banking corporation, and therefore give an edge to its competition in the bank sector. Poor communication strategies will also have an effect on the employees of the business. For instance, withdrawing important information to the employees in regard to the targets of the company, can make them loose emphasis, and concentrate on their needs at the expense of serving the customers. This may lead to poor and inefficient service, resulting in lack of customers, and again reducing the profitability of the business enterprise organization.
Poor communication with a firm will result to a culture of rigidity, and therefore limit the impressive capacity of its employees (Bell and John, 33). The competition in the bank company is fierce, and to survive on the market, it's important for the lender to encourage technology. Insufficient it, is formula for poor performance, therefore providing an edge to its competition. To encourage technology, the banking group must start proper channels of communication, and increase bonuses to anybody who arises with better business ideas.
Customers expect a great deal from the bank corporation. One expectation of customers is credibility from the client care staff, while giving information on certain services of the business. For instance a customer might tackle the customer care staff on certain requirements of going for a loan, and exactly how to settle the loan. It is vital for the customer care staff to act in a specialist manner, and present out everything concerning the concern at hand, and the anticipations of the client.
By doing so, the customer good care staff will help the banking business to make a brand, that depicts integrity and reliability. This is an essential aspect in attracting and keeping customers. Another expectation of a customer is a quick movement of information. Customers may need certain information from the bank corporation, also to get the information, they need to contact the client care staff. The employee might need to consult, and collect the information. Using this method shouldn't take long. It is because it'll create anxiousness on the staff, depending on the issue accessible.
There is also an issue of being able to access their bank accounts. Customers require mobility in accessing their bank accounts. Their presence at the banking premises should not be essential, to allow them to access their banking account. They could need information on their transaction, or to check the total amount in their accounts. The cooperation can device steps of making certain their customers can gain access to their accounts through the internet or even their cell phones. This will require a high amount of innovation.
Solution to the issue:
One of the very most effective methods of dealing with the communication problem within the business is to look at the principles of open development. The cooperation needs to conduct a case study, and observe how successful banking assistance such as Barclays Loan provider, Citi Group developed their communication strategies. The organization will thereafter adjust the strategies that are beneficial to them. For example integrating IT in the business is essential. That is a technique that CEEMEA, a branch of Citi Group Cooperation enacted as part of its communication strategies (Mohan, 27).
Another solution is to teach its customer care personnel on the better communication strategies. That is to impart with them the necessary skills required to connect to customers, and the various stake holders of the company. Customer care staffs have a responsibility to act as the general public relations employees of the banking cooperation. It is important to equip them with necessary skills of the way to handle the many stake holders of the business enterprise organization, like the customers of the business (Bell and John, 31).
The co-operation should create a proper communication channel, between your top management, and the junior personnel. Managers of the business should act as coaches and not administrator. This may allow them effectively talk the targets of the company, and will inspire the employees to work hard, so that they may help the organization to accomplish its targets.
The Circumstance of Barclays Bank:
Barclays bank co-operation realizes the value of effective communication in a bank industry. To disassociate itself from poor communication strategies, the business has merged the marketing office with the communication office. This is because proper communication influences the degree in which a banking assistance will become successful in appealing to and retaining customers.
There is the division of internal and exterior communication. Internal communication gets the responsibility of liaising with the marketing department to guarantee the company says the right words relating to their achievements to the inner stakeholders of the business. This includes traders and different high skilled employees (Mohan, 49).
The company has included IT in its functions. Through information technology, the company is able to develop digital images of its services, therefore attracting clients, and keeping the existent ones. The cooperation uses websites, and search engine optimizations, to make its occurrence felt. As a result of these measures, the organization has were able to sustain its customer bottom part, and attract clients.
Conclusion:
In summary, the success of a banking cooperation will depend on the superiority of its communication and marketing strategy. Without proper communication channels, the business will struggle to market its services. In relation to this, it is vital for a banking organization to invest intensely in building proper communication infrastructure within its create.
The group must re-design its goals, develop a route where junior employees will access their senior companions, and talk on the best ways of creating client satisfaction. To create an effective communication infrastructure, the assistance must move from its idea of revenue maximization, to customer satisfaction. This will ensure that the staffs are ground breaking enough to create better ideas on how to further move forward the objectives of the business. On this take note of, a firm without better communication strategy is a company made to fail in business.
