Omega Blog

Banks still struggling to improve reputations

Posted on 25 June, 2013

Rebuilding public trust can be a long and painful process. Once potential audiences have reason to doubt the sincerity of a firm's messages, customer retention strategies become much more difficult to successfully initiate. 

Large banks are finding this out as they continue to struggle to meet customer expectations. A recent report by an independent monitoring company found that four of the five largest financial institutions are failing to meet key aspects of a national settlement. An agreement between the attorney general's office and several major banks was designed to fix mistakes made on loan modification applications and foreclosures during the housing crisis by improving how claims were processed. The agreement was supposed to improve how struggling borrowers were treated, but the report shows that banks still have a long way to go with customer satisfaction.

"The good news is that gains have been made," Shaun Donovan, secretary of Housing and Urban Development, told the Jacksonville Business Journal. "The practice of robo-signing — where banks sign off on foreclosures with little or no review — has come to an end. We've also confirmed that the five banks have stopped charging distressed borrowers a fee just to process a loan modification request."

Improving customer experiences
However, there were still a number of self-reported violations that have continued to frustrate borrowers and reduce the level of trust consumers have in the banks. Businesses in any industry, whether they are B2B- or B2C-focused, can improve customer satisfaction by treating each patron as their most important client. Each interaction needs to be initiated with energy and enthusiasm so that small details are not missed.

This often means ensuring that internal processes are working correctly. One of the biggest issues affecting customer experiences at mortgage companies is the lack of proper notifications about changes to policies, account information or missed payments. When communication lines break down, it can lead to frustration on the part of the client. Reviewing procedures can help departments work together more efficiently to deliver a smoother customer experience.

Improving customer satisfaction and loyalty is a key driver for company growth, but organizations often fail to dedicate as much time, funding and support to customer retention as they do to other business operations. CEM consulting services, such as Omega Management Group Corp., provide the insight and expertise companies need to help ensure long-term growth and profitability.