Customer Grievances Redressal through Ombudsman

Banking Ombudsman Scheme

I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly.  Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely.  Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia.  Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers.  It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.

All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too.  A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology.  Consumer Protection Act and Right to Information Act have certainly made a change in customer service.  Today, banking or any other system can not take its customer for granted.  A critical reading of the report explains the transformation in the banking system towards extending better customer service.

Green Banking....

Green Banking by IndusInd Bank Ltd.

I had earlier listed out A, B, C, D Banking including about 30 types of Banking.  Recently, I have been reading about some more new concepts in banking.  One of them is Green Banking.  The others of course are Privilege Banking, Smart Banking, Village Banking, etc.

There have been interesting developments in ATMs.  Usually, we go to ATM with our Card only to withdraw money or check balance / get a mini-statement.  There are several other facilities, of course, which we rarely utilise.  While some banks post a Security Guard at ATMs and some others get the ATMs insured.  Very few banks provide the facility of Drop Box and Help Telephones at the ATMs.  These days to closely monitor the visitors, some banks instal cameras in the ATMs.  Recent innovation in ATMs was to facilitate the rural and illiterate customers by providing Biometric ATMs.  These value adds certainly enhance Customer Service all 24 x 7 hours.  Thanks to technology and connectivity, we have on-site and off-site ATMs.  RBI also had arranged for customers of any bank to use any ATMs anywhere....

On December 18, 2009 IndusInd Bank Ltd., inaugurated Mumbai's first Solar-powered ATM as part of its Green Office Campaign - Hum aur Hariyali.  Great service indeed.  IndusInd Bank's new Solar-ATM opened at its Opera House branch, replaces the use of Conventional Energy for 8 hours per day with eco-friendly and renewable solar energy.  The uniqueness of this solar ATM is the ability to store and transmit power on demand (in case of power failure) or need (time basis). It is also cost-effective compared to regular power based ATMs.  This is first of its kind in India and revolutionary concept in Green Banking.

SBI and Green Banking initiative

On the other hand, State Bank of India has become the country's first bank to venture into generation of green power by installing windmills  for captive use in Coimbatore, Tamil Nadu.  Please click on the title for more information on this topic.

Green Bank in Google and on Youtube

Those who are interested to know more are advised to search in Google or watch on Youtube.

SBI again...

State Bank of India

Financial results of several public and private sector banks in India are hitting the headlines every day; some released their Q4 and some others about the full year too.  By and large all the banks are showing encouraging results which is also impacting the share market.  While I am waiting for some more information to pen down my comments / observations on the industry, SBI results are yet to hit news.

In the mean time, I came across some information from the monthly bulletin - April 2010 of SBI Pensioners Association-Hyderabad.  It captured some achievements of SBI in recent past.  These are:-

01. SBI has been chosen as a recipient of High Performance Brand of the Year 2009 by AIMA (All India Management Association - New Delhi) for R.K. Swamy High Performance Award.

02. SBI ranks 7th in "Best Companies to Work For" - Business Today (February 7, 2010)

03. State Bank of India awarded Technology Bank of the Year award in recognition of outstanding achievements in Banking Technology - IBA Banking Technology Awards 2009

04. State Bank of India declared as the winner for Customer & Brand Loyalty in the "Banking Sector" - 3rd Loyalty Awards (part of the 3rd Loyalty Summit)

05. SBI's ranking has improved to 36 (in 2010) from 70 (in 2009) in the Brand Finance Global Banking 500 by Brand Finance Pic.  SBI has become the first Indian Bank to break into the world's Top 50 List.

I am proud to be an SBI-an.  My sincere and hearty greetings and congratulations to all SBI-ans too.

SBI - its different always

Have you noticed the ads of SBI in recent months.  Three or four tag lines....Pure Banking - Nothing Else; The Banker to Every Indian; With you all the way.  And those creative ads with Great Indians like Rabindra Nath Tagore, et al.    I had written on March 20 in this blog about their accomplishments about ATMs and branches............. The Bank always growing younger and younger with innovations and creations, achieving higher results year after after.  It is a Giant Bank, of course, of India.

Business Line today carries two news items with captions - 1. Massive drop in bank lending to real estate sector and 2. SBI group bucks the trend; real estate loans up 56%  (http://www.thehindubusinessline.com/)
That is State Bank.  The details can be read from the link given here.

Why I am still in love with the bank I left in 1993?  Donno why.  I got a call from a Mumbaikar friend last week for an advice to a TAPMIan who got an offer to join SBI in middle management cadre. This candidate passed out from TAPMI in 2008 and hardly knows me.  But my friend Avinash is a high profile academician; he is an Economist, a Fellow in Management from IIM-A, was a senior executive for decades, a Consultant and Director for many companies, a Researcher and highly accomplished Academic too besides a good human being.  He knows my past (in SBI) and present (in TAPMI); he likes me and shares his frank thoughts in general whenever we meet in Manipal or Mumbai.

The candidate has been working in a private sector financial consulting company with a plum compensation.  He is into equity research.  He is now in a dilemma to choose between the lucrative private job and accepting the SBI offer.  He sought Avinash's advice who in turn referred him to me.  Of course, he gave his gyan and suggested the candidate to consider SBI from long term career growth perspective.  In my own style, I sang the song for SBI and host of opportunities ahead of him even up to becoming the Chairman of the bank.  The candidate shared his concerns over phone as also through email, which I responded in favour of SBI job.  Avinash concurred with my views.  It is for the candidate to make up his mind between money and career.

SBI reaches new milestones

All newspapers carried ads and news item about SBI reaching yet another milestone(s) yesterday - in opening 1,000th branch and 10,000th ATM in the current financial year in Mumbai.  Its branch strength touched 12,448 with a grand figure of over 21,000 ATMs.  In private conversations, we always used to refer SBI as a sleeping giant; a dinossaur, etc because it was a slow runner to introduce modern products and services like Credit Cards or CBS or Retail Banking products.  Now everything is reverse. Its a leader.

Two days back a Visiting Professor and Senior Consultant in a reputed international Organisation met me and was critical of SBI's  quality of service. He claimed to have been a customer of the bank for about 30 years and was speaking confidently and authentically that the bank has not improved its customer service.

Having worked in SBI between 1971 and 1993 in different capacities in various locations from a rural branch in a backward area (Warangal & Medak Districts in AP) and closely watching the progress almost on daily basis, I differed with him.  I stoutly defended the bank in its multiple initiatives be it in Customer Service or Computerisation or Branch Banking or Training to its Staff or Leader of the Banking Industry or as a leading global player including international expansions and take overs.  Besides tall claims or advertisements, numbers speak.  One is advised to visit its website http://www.statebankofindia.com/ to know more about the bank.  If only we are keen on its milestones, two research books on its history written by Amit Bagchi are testimony. 

SBI has always been transforming ever since it was formed by re-christening Imperial Bank of India in 1955 with a mandate to go rural. In 1971-72, it undertook re-organisation and introduced budgetary and planning system even when there was no major mechanisation or computerisation.  Again in 1981 and 1990 the bank went for re-structuring its working primarily keeping in view the Customer in its focus.  The logo was also designed in consultation with IIM-A in 1971 which cares for the customer - individual or institutional. SBI was also the first to have gone in for Long Range Planning for its business and organisational development.

"Parivartan" is a unique initiative by the present Chairman Shri OP Bhatt which made each and every employee of SBI to wake up and realise the threat or competition, the customer needs and need to retain if not increase its market share.  No doubt its size may some times its own hinderance but then in today's (twenty-first century) technology world size - big or small - does not matter.  Technology fecilitates global reach with faster and accurate service handling huge volumes.

Incidentally, the two major Customer Service Committees appointed by RBI in 1970s and 1990s were headed by Shri RK Talwar and Shri MN Goiporia who were sitting Chairmen of SBI.  The bank knows its customers, its country, its boundaries (but operates beyond), its competitors and its future. SBI, if fact, is a trend setter and leader in the banking industry in India; while RBI looks to SBI's advicefor all its policies .

It is nearly 17 years that I voluntarily quit SBI as a Chief Manager in April 1993, but am always referred by my friends and colleagues as SBI-man.  I have the emotional attachment to mySBI and I am a Pensioner, a Customer, a staunch Well-sher of the bank.  Almost everyday I speak at least to one of my ex-colleagues.  I feel proud that the bank is scaling higher and higher with many more milestones in the offing.  Long live SBI.