In the early 20th century, an era where “caveat emptor” — buyer beware — was the norm for customers’ interaction with most businesses, a group of department store moguls is credited with flipping the script. “The customer is always right” became the maxim, one that has solidified itself as best business practice over the last 120 years.
But what happens when the customer isn’t right? It’s a question most businesses commonly face, and banks aren’t immune to customers who insist on actions that go against their own personal or financial protection or attempt to circumvent controls that protect the bank. An upcoming session — appropriately titled “Is the customer always right?” — at ABA’s Financial Crimes Enforcement Conference will examine this tricky issue.
Shannon Bennett, SVP of Compliance Technology Product Management at Wintrust Financial Corp., is moderating a discussion with bankers from BankProv and Security National Bank. It’s not an easy issue for bank staff to navigate, Bennett said, noting that the conference session will provide insight into how an institution can maintain great customer service, while ensuring that employees are trained and empowered to do the right thing to protect both the institution and customer.
“There are several examples that can come into play when a customer is not right,” she said. “Those situations may include a customer trying to convince staff to circumvent policies that are there to protect the institution. Other instances that require the institution to say no to the request of the customer are there to protect the customer from fraud and abuse.”
Communication in these situations is most important — whether it’s face to face or electronically, and banks can provide regular training for such situations.
“Providing both scenario-based and ‘soft-skill’ training are important,” Bennett said. “First, scenario-based training allows employees to understand the different situations that they may encounter to trust their instinct or gut when something is telling them that what is being requested doesn’t seem right. Soft skill training provides an understanding of knowing what questions to ask and how to ask them.”
Bennett said that teaching employees to have the confidence and authority to ask the probing questions when their instinct is telling them something is wrong can be tough.
“It’s an easier and faster route to get rid of the demanding or bullying customer to just concede to the customer’s request,” she said. “Reinforcing that the easy route is not the path that should ever be taken and the right thing to do is what is expected when the situation falls into a red-flag scenario.”
It is critical to create a culture that ensures that employees feel empowered and supported by bank leaders in instances where the customer isn’t right.
“Having employees know they are empowered and supported allows them to trust their judgement to make the right decision when having to say no to a customer,” she said.
