Improving the effectiveness of banks’ service guarantees: Employee behaviour

Many participants took great pride in their work. They reported working hard and making every effort possible to serve customers quickly. Many shared the belief that they should not have to compensate the customer when they were doing their utmost to serve quickly and it was not their fault. They almost took it as a personal insult as well as an indication that they were not doing their job well. In addition to their personal pride, several participants believed that frequent use of the guarantee would reflect poorly on their performance evaluations. They noted that when frequent and significant amounts are being paid out, top management is likely to be critical of them and of their branch. These feelings of personal pride and concern about negative performance evaluations may explain their behaviour and the lack of real support for the programme.

Understanding the goals of the programme

In designing the guarantee programme, the bank’s intentions were to communicate its commitment to deliver fewer and shorter delays and its desire to satisfy customers under all circumstances, regardless of cause. As reported above, many employees seemed to believe that the wait-time guarantee was to be exercised only when the bank or its employees were at fault. Thus, many participants lacked a fundamental understanding of the true goals and principles of the programme. While training was provided on the operational aspects of the guarantee, the higher order corporate goals were not communicated well enough to all employees. This incomplete understanding of the bank’s objectives and intentions seems to have contributed to the atmosphere reported by customers who were experiencing delays.

 

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

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